New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Virtusa Corp. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: May 25, 2012 12:19PM

Virtusa Corp. (VRTU) filed Annual Report for the period ended 2012-03-31. Virtusa Corp has a market cap of $357.3 million; its shares were traded at around $13.94 with a P/E ratio of 17.6 and P/S ratio of 1.3.



Highlight of Business Operations:

We generate revenue by providing IT services to our clients located primarily in North America and Europe. We have historically earned, and believe that over the next few fiscal years we will continue to earn a significant portion of our revenue from a limited number of clients. For the fiscal year ended March 31, 2012, collectively, our five largest and ten largest clients accounted for 45% and 59% of our revenue, respectively. Our two largest clients accounted for 16% and 12%, respectively, of our revenue for the fiscal year ended March 31, 2012. The loss of any one of our major clients could reduce our revenue and operating profit and harm our reputation in the industry. During the fiscal year ended March 31, 2012, 78% of our revenue was generated in North America, 18% in Europe and 4% in rest of the world. We provide IT services on either a time-and-materials or a fixed-price basis. For the fiscal year ended March 31, 2012, the percentage of revenue from time-and-materials and fixed-price contracts was 82% and 18%, respectively.

Revenue increased by 27.4%, or $59.8 million, from $218.0 million during the fiscal year ended March 31, 2011 to $277.8 million in the fiscal year ended March 31, 2012, due primarily to higher revenue contribution from all of our industry groups led by BFSI and C&T and revenue contribution of clients acquired in the ALaS acquisition. Revenue from clients existing as of March 31, 2011 increased by $35.7 million and revenue from new clients added during the fiscal year ended March 31, 2012 was $24.1 million. Revenue from European clients in the fiscal year ended March 31, 2012 increased by $4.8 million, or 10.6%, as compared to the fiscal year ended March 31, 2011. Excluding BT, our largest European client, our European revenue increased by $1.8 million, or 12.2%, in the fiscal year ended March 31, 2012 as compared to the fiscal year ended March 31, 2011. Revenue from North American clients increased by $53.2 million, or 32.7%, as compared to the fiscal year ended March 31, 2011. Revenue from clients in the BFSI and C&T industries increased by 37% and 23% respectively, in the fiscal year ended March 31, 2012 as compared to the fiscal year ended March 31, 2011. We had 89 active clients at March 31, 2012 as compared to 80 active clients at March 31, 2011.

Operating expenses increased from $65.7 million in the fiscal year ended March 31, 2011 to $76.4 million in the fiscal year ended March 31, 2012, an increase of $10.7 million. The increase in operating expenses was due to an increase of $5.0 million in base and variable compensation, $1.8 million in facilities expenses, a $1.5 million increase in professional services, a $0.8 million increase in travel expenses and a $1.1 million reduction in foreign currency forward contract gains as part of our hedging program. These increases were partially offset by a decrease of $0.3 million in amortization of intangibles during the fiscal year ended March 31, 2012 as compared to the fiscal year ended March 31, 2011. As a percentage of revenue, our operating expenses decreased from 30.1% in the fiscal year ended March 31, 2011 to 27.5% in the fiscal year ended March 31, 2012 due in part to an increase in operating efficiencies and a larger revenue base.

increased by $34.0 million and revenue from new clients added during the fiscal year end March 31, 2011 was $19.6 million. Revenue from European clients in the fiscal year ended March 31, 2011 increased by $5.7 million, or 14.6%, as compared to the fiscal year ended March 31, 2010. Excluding BT, our largest European client, our European revenue increased by $0.9 million, or 6.9%, in the fiscal year ended March 31, 2011 as compared to the fiscal year ended March 31, 2010. Revenue from North American clients increased by $40.8 million, or 33.5%, as compared to the fiscal year ended March 31, 2010. Revenue from clients in each of the BFSI, C&T and M&I industries increased by 52%, 24% and 5% respectively, in the fiscal year ended March 31, 2011 as compared to the fiscal year ended March 31, 2010. We had 80 active clients at March 31, 2011 as compared to 68 active clients at March 31, 2010.

Operating expenses increased from $57.3 million in the fiscal year ended March 31, 2010 to $65.7 million in the fiscal year ended March 31, 2011, an increase of $8.4 million. The increase in operating expenses was due to an increase of $4.0 million in facilities expenses, $2.4 million in amortization expenses, and $7.1 million in base and variable compensation. This increase was partially offset by a $2.1 million reduction in foreign currency forward contract losses as part of our hedging program, a decrease of $0.6 million in consultant fees, and a decrease in $0.7 million in travel expenses during the fiscal year ended March 31, 2011 as compared to the fiscal year ended March 31, 2010. As a percentage of revenue, our operating expenses decreased from 34.9% in the fiscal year ended March 31, 2010 to 30.1% in the fiscal year ended March 31, 2011.

Read the The complete Report



Stocks Discussed: VRTU,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial