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iGate Corp. Reports Operating Results (10-Q)

July 28, 2010 | About:
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10qk

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iGate Corp. (IGTE) filed Quarterly Report for the period ended 2010-06-30.

Igate Corp. has a market cap of $944.3 million; its shares were traded at around $17.08 with a P/E ratio of 24 and P/S ratio of 4.9. The dividend yield of Igate Corp. stocks is 0.6%.IGTE is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Ronald Muhlenkamp of Muhlenkamp Fund, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

S,G&A costs for the three months ended June 30, 2010 were $11.8 million or 17.7% of revenues, as compared to $8.9 million or 18.9% of revenues for the three months ended June 30, 2009. Our net employee cost increased by $2.3 million for the three months ended June 30, 2010, as compared to three months ended June 30, 2009, mainly due to an increase in salaries, bonus and benefits of $1.5 million, recruitment expense of $0.5 million, and travel expense and related costs of $0.3 million. Our net corporate cost increased by $0.5 million for the three months ended June 30, 2010 due to increase in outside professional services, legal costs, marketing, accounting, insurance and administrative charges. Our net facilities costs increased by $0.2 million for the three months ended June 30, 2010, mainly due to increase in rental and communication related expenses. The increase in S,G&A cost includes an unfavorable movement of the US Dollar against other currencies amounting to $0.4 million.

S,G&A costs for the six months ended June 30, 2010 were $21.8 million or 17.5% of revenues, as compared to $17.4 million or 19.0% of revenues for the six months ended June 30, 2009. Our net employee cost increased by $3.3 million for the six months ended June 30, 2010, as compared to six months ended June 30, 2009, mainly due to increase in salaries, bonus and benefits by $2.0 million , recruitment expense of $0.6 million, and travel and related costs of $0.6 million. Our net corporate cost increased by $0.7 million for the six months ended June 30, 2010 due to increase in outside professional services, legal, accounting and administrative charges which was partly offset by a decrease in provision for doubtful debts. Our net facilities costs increased by $0.4 million for the six months ended June 30, 2010, mainly due to the increase in rental expense. The increase in S,G&A cost includes an unfavorable movement of the US Dollar against other currencies amounting to $1.0 million.

Other income is primarily comprised of the favorable foreign currency movements resulting in the reduction of the realized loss on our hedges to $1.0 million for the six months ended June 30, 2010 as compared to $4.7 million for the six months ended June 30, 2009. The unfavorable foreign currency loss related to our intercompany debt in India and the remeasurement of the current assets denominated in the foreign currency, amounting to $0.1 million for the six months ended June 30, 2010 as compared to the favourable foreign currency gain of $1.0 million for the six months ended June 30, 2009.

Cash provided by operations was $16.2 million for the six months ended June 30, 2010. Factors contributing to our cash provided by operations were income from operations of $22.8 million for the period and an increase of accrued and other liabilities of $5.0 million offset by an increase in prepaid and other assets $0.1 million, increase in accounts receivable and unbilled receivables of $13.0 million. During the period, significant non-cash items totaled $4.5 million and included depreciation and amortization costs of $4.3 million and stock based compensation expense of $3.0 million offset by deferred income taxes of $2.9 million.

Cash provided by operations was $19.8 million for the six months ended June 30, 2009. Factors contributing to our cash provided by operations were income from operations of $11.1 million; a decrease of prepaid and other assets of $1.3 million and a decrease of accounts receivable and unbilled receivables of $4.8 million and an increase of deferred revenue of $0.2 million offset by a decrease of accounts payable of $0.9 million, a decrease of accrued and other current liabilities of $0.3 million and decrease of restructuring reserve of $0.3 million. Significant non-cash items during the six months ended June 30, 2009 totaled $5.2 million and included depreciation and amortization costs of $3.8 million, stock based compensation expense of $2.5 million, provision for bad and doubtful debt of $0.3 million, offset by deferred income taxes of $1.4 million.

Cash used by financing activities for the six months ended June 30, 2010 was $6.4 million, as compared to $5.7 million for the six months ended June 30, 2009. Dividends paid amounted to $6.1 million and $6.0 million for the six month periods ended June 30, 2010 and 2009, respectively.

Read the The complete Report

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