iGate Corp. (IGTE, Financial) filed Quarterly Report for the period ended 2009-03-31.
iGATE Corporation offers a comprehensive range of Information Technology solutions. Their employees specialize in areas such as offshore outsourcing enterprise applications and IT staffing all available via a variety of strategic delivery models. iGate Corp. has a market cap of $211.3 million; its shares were traded at around $3.9 with a P/E ratio of 7.5 and P/S ratio of 0.9. The dividend yield of iGate Corp. stocks is 2.8%.
During the three months ended March 31, 2009, our net investment income totaled $0.9 million as compared to $0.6 million for the three months ended March 31, 2008. The increase was due to an increase in cash and cash equivalents from $51.5 million in March 31, 2008 to $62.6 million in March 31, 2009 and a consequential increase in investable funds. The increase in cash was mainly due to the cash flow from operating activity which offsets the payment of dividend and investment in new properties. For the three months ended March 31, 2009, we recognized a $1.8 million of foreign currency loss in our income statement as compared to a gain of $0.6
Federal income taxes, calculated at the U.S. statutory rate, totaled $1.6 million for the three months ended March 31, 2009. State income taxes, which totaled $0.01 million for the three months ended March 31, 2009, were calculated using a blended statutory rate, and are net of federal income tax benefit. Our income tax provision was a benefit of $0.15 million at an effective rate of 3.2% for the three months ended March 31, 2009.
Cash provided by operations was $8.6 million for the three months ended March 31, 2009. Factors contributing to our cash provided by operations were income from operations of $5.0 million for the period and a decrease in accounts receivable and unbilled receivables of $3.5 million offset by a decrease of accrued and other liabilities of $2.4 million. During the period, significant non cash items totaled $2.6 million and included depreciation and amortization costs of $1.9 million and stock based compensation expense of $1.3 million, provision for doubtful debts of $0.2 million, and is offset by deferred income taxes of $ 0.8 million.
of prepaid and other current assets of $3.5 million and a decrease of deferred revenue of $1.1 million offset by an increase in accounts receivable of $6.6 million. Significant non-cash items during the three months ended March 31, 2008 totaled $3.8 million and included depreciation and amortization costs of $2.9 million and stock based compensation expense of $1.2 million, provision for doubtful debts of $0.4 million, minority interest of $0.3 million, deferred rent of $0.4 million and is offset by deferred income taxes of $1.4 million.
Cash used by financing activities for the three months ended March 31, 2009 was $5.9 million, as compared to $0.4 million of cash provided for the three months ended March 31, 2008. Sources of cash related to stock option exercises including excess tax benefits were $0.1 million. Dividends paid amounted to $6.0 million.
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iGATE Corporation offers a comprehensive range of Information Technology solutions. Their employees specialize in areas such as offshore outsourcing enterprise applications and IT staffing all available via a variety of strategic delivery models. iGate Corp. has a market cap of $211.3 million; its shares were traded at around $3.9 with a P/E ratio of 7.5 and P/S ratio of 0.9. The dividend yield of iGate Corp. stocks is 2.8%.
Highlight of Business Operations:
S,G&A costs for the three months ended March 31, 2009 were $8.6 million or 19.2% of revenues, as compared to $11.9 million or 21.5% of revenues for the three months ended March 31, 2008. Our net employee cost decreased by approximately $2.5 million for the three months ended March 31, 2009, as compared to three months ended March 31, 2008, mainly due to decrease in variable pay, reduction of support headcount from 510 to 487, recruitment, travel and related costs. Our net corporate cost was lower by approximately $0.6 million for the three months ended March 31, 2009 due to decrease in provision for doubtful debts, marketing, legal, accounting and administrative charges. Our net facilities costs decreased by $0.3 million for the three months ended March 31, 2009, mainly due to reduction in rental and communication related expenses.During the three months ended March 31, 2009, our net investment income totaled $0.9 million as compared to $0.6 million for the three months ended March 31, 2008. The increase was due to an increase in cash and cash equivalents from $51.5 million in March 31, 2008 to $62.6 million in March 31, 2009 and a consequential increase in investable funds. The increase in cash was mainly due to the cash flow from operating activity which offsets the payment of dividend and investment in new properties. For the three months ended March 31, 2009, we recognized a $1.8 million of foreign currency loss in our income statement as compared to a gain of $0.6
Federal income taxes, calculated at the U.S. statutory rate, totaled $1.6 million for the three months ended March 31, 2009. State income taxes, which totaled $0.01 million for the three months ended March 31, 2009, were calculated using a blended statutory rate, and are net of federal income tax benefit. Our income tax provision was a benefit of $0.15 million at an effective rate of 3.2% for the three months ended March 31, 2009.
Cash provided by operations was $8.6 million for the three months ended March 31, 2009. Factors contributing to our cash provided by operations were income from operations of $5.0 million for the period and a decrease in accounts receivable and unbilled receivables of $3.5 million offset by a decrease of accrued and other liabilities of $2.4 million. During the period, significant non cash items totaled $2.6 million and included depreciation and amortization costs of $1.9 million and stock based compensation expense of $1.3 million, provision for doubtful debts of $0.2 million, and is offset by deferred income taxes of $ 0.8 million.
of prepaid and other current assets of $3.5 million and a decrease of deferred revenue of $1.1 million offset by an increase in accounts receivable of $6.6 million. Significant non-cash items during the three months ended March 31, 2008 totaled $3.8 million and included depreciation and amortization costs of $2.9 million and stock based compensation expense of $1.2 million, provision for doubtful debts of $0.4 million, minority interest of $0.3 million, deferred rent of $0.4 million and is offset by deferred income taxes of $1.4 million.
Cash used by financing activities for the three months ended March 31, 2009 was $5.9 million, as compared to $0.4 million of cash provided for the three months ended March 31, 2008. Sources of cash related to stock option exercises including excess tax benefits were $0.1 million. Dividends paid amounted to $6.0 million.
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