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Virtusa posts lower 3Q profit and revenue

Mon, 02/01/2010 - 2:01pm
The Associated Press

Information technology company Virtusa Corp. said Monday its fiscal third-quarter profit declined, hurt by lower revenue and foreign currency exchange losses.

For the three months ended Dec. 31, the company earned $2.9 million, or 12 cents per share, down from a profit of $6.3 million, or 27 cents per share, in the same period a year earlier.

Revenue fell 7 percent to $41.7 million from $44.9 million.

Analysts, on average, were expecting a profit of 11 cents per share on sales of $40.4 million, according to a poll by Thomson Reuters.

"We are pleased with the results of our third quarter which, as expected, saw a return to sequential growth across all industry groups and geographies, said Kris Canekeratne, chairman and CEO, in a statement.

The company's revenue grew 11 percent sequentially.

The third quarter's results included $400,000 of foreign exchange losses compared with a $1.3 million foreign exchange gain a year earlier.

For the fiscal fourth quarter, the company expects earnings of 10 cents to 15 cents per share on sales of $46.8 million to $48.8 million.

The forecast includes Virtusa's acquisition of ConVista Consulting, which is expected to add revenue of $3 million for the fourth quarter. In addition, Virtusa expects ConVista Consulting to decrease per-share results by 2 cents to 3 cents.

Analysts are expecting a profit of 15 cents per share on sales of $44.1 million.

The company expects full-year earnings of 45 cents to 50 cents per share on sales of $163.4 million to $165.4 million.

Analysts are predicting a profit of 50 cents per share on sales of $159.3 million.

Shares slid 5 cents to $8.94 in after-hours trading. The stock had closed up 8 cents at $8.99.

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