IGATE revenue up 10%, Q2 net income dips to $3 mn from $30 mn

IGATE today reported 10.1 percent increase in second quarter 2014 revenues to $311.7 million.

Gross margin dipped to 36.6 percent in Q2 2014 from 37.9 percent in the second quarter of 2013, said IGATE.

Adjusted EBITDA increased to $70 million from $66.2 million.

Net Income of IGATE decreased to $3.1 million (after a one-time charge of $51.8 million arising from the extinguishment of debt) as compared to $30 million.

The US-based company added nine new clients including five Global 2000 companies during the second quarter.

IGATE CEO Ashok Vemuri

As of June 30, 2014, IGATE had 32,742 employees with a net addition of 1,907.

Ashok Vemuri, president and chief executive officer, IGATE said: “The partnership that we entered with a North American insurance major this quarter is testimony to our ability to be a transformational player and validates our continuing investment in building industry-leading solutions.”

“Our new brand identity and redesigned value proposition has resonated well with all our stakeholders. We continue to invest in technology and process capabilities with specific focus on our Digital Practice. The verticalization strategy we implemented at the beginning of the year has started yielding dividends with overall growth across industry segments,” Vemuri added.