Virtusa Corporation, a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry solutions to transform the customer experience, reported the consolidated financial results for the second quarter fiscal 2017, ended September 30, 2016.
Revenue for the second quarter of fiscal 2017 was US $ 210.1 million, an increase of 2.2 percent sequentially and 46.9 percent year-over-year (YoY). On a constant currency basis, the second quarter revenue increased 3.2 percent sequentially and 49.4 percent YoY.
Virtusa reported GAAP income from operations of US $ 3.5 million for the second quarter of fiscal 2017, compared to loss from operations of US $ 1.8 million for the first quarter of fiscal 2017 and income from operations of US $ 13.3 million for the second quarter of fiscal 2016.
On a GAAP basis, the net income for the second quarter of fiscal 2017 was US $ 3.2 million, or US $ 0.11 per diluted share, compared to net loss of US $ 6.3 million or US $ 0.21 per diluted share, for the first quarter of fiscal 2017 and net income of US $ 11.1 million or US $ 0.37 per diluted share, for the second quarter of fiscal 2016.
The company ended the second quarter of fiscal 2017 with US $ 227.3 million of cash, cash equivalents and short-term and long-term investments. Cash flow from operations was US $ 25.2 million for the second quarter of fiscal 2017.
Virtusa Chairman and CEO Kris Canekeratne stated, “We are pleased with our second quarter results, which include strong growth in our BFSI and M&I industry groups. While market conditions remain challenging, we continue to see healthy demand for our solutions. This is reflected in our pipeline, which is expanding across all verticals and solution areas.”
Chief Financial Officer Ranjan Kalia said, “During the second quarter, we delivered revenue above the mid-point of our guidance range and reported solid sequential improvement in our DSO, which helped drive strong cash flow in the quarter. The midpoint of our fiscal year 2017 revenue guidance remains unchanged despite higher than expected foreign currency headwinds and third quarter furloughs. Our revised EPS guidance reflects the impact of higher onsite effort and contractor resourcing related to digital transformation programmes, as well as currency headwinds.”