Welcome!

Machine Learning Authors: Elizabeth White, Yeshim Deniz, Pat Romanski, AppNeta Blog, Derek Weeks

News Feed Item

iGATE Reports Financial Year 2013; Revenues Up 7.2%; Net Income Up 35.5%

ISELIN, New Jersey, January 16, 2014 /PRNewswire/ --

Successfully completes internal re-organization resulting in vertical-based business units

iGATE Corporation (iGATE or the Company) (NASDAQ: IGTE), the first integrated Technology and Operations (iTOPS) company providing "Business Outcomes" based solutions, today announced its financial results for the fourth quarter and year ended December 31, 2013.

     (Logo: http://photos.prnewswire.com/prnh/20130717/629294 )

Fourth Quarter Highlights

  • Revenues were $299.3 million
    • Increased 10.2% compared with $271.6 million in the fourth quarter of 2012
    • Increased 2.0% sequentially compared with $293.4 million in the third quarter of 2013
  • Net Income attributable to iGATE Corporation was $33.1 million
    • Compared with $30.8 million in the fourth quarter of 2012
    • Compared with $31.9 million in the third quarter of 2013
  • Gross margin was 39.8%
    • Compared with 40.6% in the fourth quarter of 2012
    • Compared with 41.4% in the third quarter of 2013
  • Diluted earnings per share were $0.30 GAAP and $0.49 non-GAAP
    • Compared with $0.30 GAAP and $0.45 non-GAAP in the fourth quarter of 2012
    • Compared with $0.30 GAAP and $0.46 non-GAAP in the third quarter of 2013
  • Adjusted EBITDA was $74.7 million
    • Compared with $71.2 million in the fourth quarter of 2012
    • Compared with $78.4 million in the third quarter of 2013
  • The Company added nine new customers during the fourth quarter, including five Fortune 1000 companies
  • As of December 31, 2013, the Company had 29,733 employees with a net addition of 1,450.

Full Year Highlights for the year ended December 31, 2013

  • Revenues for the year were $1,150.9 million
    • Compared with $1,073.9 million for the year ended December 31, 2012
  • Net Income attributable to iGATE Corporation was $129.8 million
    • Compared with $95.8 million for the year ended December 31, 2012
  • Gross margin was 39.3%
    • Compared with 39.5% for the year ended December 31, 2012
  • Diluted earnings per share were $1.21 GAAP and $ 1.88 non-GAAP
    • Compared with $0.85 GAAP and $1.56 non-GAAP for the year ended December 31, 2012
  • Adjusted EBITDA was $284.8 million
    • Compared with $271.4 million for the year ended December 31, 2012

Ashok Vemuri, President and Chief Executive Officer, iGATE, said, "I am happy with the Company’s performance in 2013 and particularly pleased with the nature of large deals signed during the year. We have successfully finished regrouping the organization into vertical-based business units that bring in more industry knowledge and solutions, move us closer to the customer, and increase the depth and accountability to the business. I am confident that we are poised for a faster pace of growth in 2014."

Sujit Sircar, Chief Financial Officer, iGATE, said, “I am pleased with our growth in net income in 2013 while we continue to deliver strong earnings per share. In order to better position us to create more shareholder value, we entered into a credit agreement during the fourth quarter and expect this to lower our debt servicing cost and therefore better our earnings and profitability from 2014.”  

Fourth Quarter and Fiscal Year 2013 Operating Results

Results of the fourth quarter and full fiscal year for 2013 and 2012, on GAAP and non-GAAP basis, are provided in the table below.

                                   Q4 FY13 Q4 FY12  Y/Y    FY13    FY12   Y/Y

    Net revenue ($Millions)          299.3   271.6 10.2% 1,150.9 1,073.9  7.2%
    Operating margin ($Millions)      59.0    56.4  4.6%   227.2   206.3 10.1%
    GAAP net income ($Millions)       33.1    30.8  7.5%   129.8    95.8 35.5%
    GAAP diluted EPS ($)              0.30    0.30     -    1.21    0.85 42.4%
    Adjusted EBITDA ($Millions)       74.7    71.2  4.9%   284.8   271.4  4.9%
    Non-GAAP net income
    ($Millions)                       39.7    35.0 13.4%   150.3   121.0 24.2%
    Non-GAAP diluted EPS ($)          0.49    0.45  8.9%    1.88    1.56 20.5%



Key contracts won during the Fourth Quarter    

  • A large North American corporation in the business of international luxury and hotel management signed up with iGATE to streamline its back office operations and reduce the SG&A. As part of the multi-million, multi-year engagement, iGATE will centralize back office operations of the client’s payroll processing across its properties in North America and deliver services on a transaction pricing model. This is expected to provide enhanced financial transparency and flexibility to the client. The back-office centralization is also expected to create significant business benefits due to standardization and process efficiency improvements.
  • One of the world’s largest and North America based independent financial broking company has selected iGATE to increase efficiency and improve the quality of its internal systems and IT applications. As part of the engagement, iGATE will establish and manage the Testing Center of Excellence for the client. Apart from this, iGATE is also expected to assist the CIO’s office on its goals of improving throughput, efficiency & availability through process improvements across all software development lifecycles.  The deal was won amidst stiff competition and strong incumbents.
  • A leading consumer electronics and audio equipment retailer in North America signed up with iGATE to transform its point of sale experience with customers. As part of this initiative, iGATE will implement and maintain a “Single Window Clearance” support model for the client’s existing point of sale application and provide help-desk support on a Service Level Agreement basis. This engagement is expected to make ticket resolution quicker as well as decrease the cost of running a retail store while improving the customer’s in-store experience.
  • A large North America based multinational corporation providing Information Technology and hardware solutions selected iGATE as a strategic partner to develop a product that caters to storage needs across midrange, enterprise, and performance optimized arrays. iGATE, through its expertise in managing user experience, will work on a product that enhances the end customer experience with next generation storage management capabilities.
  • A leading United States healthcare company providing a range of insurance products and related services selected iGATE to provide claims administrative services. As part of the multi-million, multi-year engagement, iGATE, through its subsidiary CHCS Services Inc., will provide claims adjudication services to the healthcare company for their HMO Medicare Advantage line of business. These services will be delivered out of iGATE’s Pensacola facility.

Awards and Recognitions during the Fourth Quarter

  • iGATE was conferred with the Gold Level Award in the Healthy Workplace 2013 assessment. Arogya World – the global health non-profit organization, conducted the first edition of this assessment in India as part of the Clinton Global Initiative Commitment to Action leveraging workplaces as platforms for wellness advancement and chronic disease prevention.
  • iGATE was awarded the ISO 20000 certification for its IT Networks and Information Support functions. This certification measures the effectiveness of the services offered by these business enabling groups and the organization itself comparing them with industry benchmarks.

Conference Call and Webcast

The Company has scheduled its Earnings Conference Call on Thursday, January 16, 2014 to discuss the results of its fourth quarter and full year ended December 31, 2013. Senior management of the Company will discuss the Company's financial performance for the quarter and answer participants' questions during the call.


    Time                :  07.30-8.30 am Eastern Time
    Toll Free (U.S.)    :  877-407-8037
    Toll (U.S.)         :  201-689-8037
    Toll Free (India)   :  000 800 852 1477


The call will be webcast live on iGATE’s website (http://www.igate.com) in the Investor Relations page under the section Events. Participants are requested to log in 10 minutes prior to the start of the webcast. The on-demand version of the webcast will be available on the iGATE website shortly after the call.

Investors, potential investors, shareholders and bond holders can access the telephonic replay by dialing 877-660-6853 (toll free) or 201-612-7415 (toll) and entering conference number 13574224. The telephonic replay will be available until January 21, 2014.

About iGATE

iGATE Corporation is the first integrated technology and operations (iTOPS) company providing full-spectrum consulting, technology and business process outsourcing, and product and engineering solutions on a Business Outcomes-based model. Armed with over three decades of IT Services experience and powered by the iTOPS platform, iGATE’s multi-location global organization has a talent pool of more than 29,500 employees and consistently delivers effective solutions to over 300 companies including Fortune 1000 clients spanning verticals such as: banking and financial services; insurance; healthcare and life sciences; manufacturing; retail and CPG; media and entertainment; energy and utilities; and independent software vendors. Please visit http://www.igate.com for more information.

iGATE Corporation is listed on NASDAQ under the symbol "IGTE."

Use of non-GAAP Financial Measures

This press release contains non-GAAP financial measures as defined by the Securities and Exchange Commission. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles in the United States (“GAAP”) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in the attached financial tables.

iGATE believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with iGATE's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate iGATE's results of operations in conjunction with the corresponding GAAP measures. These non-GAAP measures should be considered supplemental in nature and should not be considered in isolation or be construed as being more important than comparable GAAP measures.

iGATE believes that providing Adjusted EBITDA and non-GAAP net income and non-GAAP diluted earnings per share in addition to the related GAAP measures provides investors with greater transparency to the information used by iGATE's management in its financial and operational decision-making. These non-GAAP measures are also used by management in connection with iGATE’s performance compensation programs.

More specifically, the non-GAAP financial measures contained herein exclude the following items:

  • Amortization of intangible assets: Intangible assets are comprised of the value of customer relationships from the recent acquisition of iGATE Computer Systems Limited (formerly known as Patni Computer Systems Limited and referred to herein as "iGATE Computer") and the previous delisting of iGATE Computer. iGATE incurs charges relating to the amortization of these intangibles. These charges are included in iGATE's GAAP presentation of earnings from operations, operating margin, net income and diluted earnings per share. iGATE excludes these charges for purposes of calculating these non-GAAP measures.
  • Stock-based compensation: Although stock-based compensation is an important component of the compensation of iGATE’s employees and executives, determining the fair value of the stock-based instruments involves a high degree of judgment and estimation and the expense recorded may not reflect the actual value realized upon the future exercise or termination of the related stock-based awards. Furthermore, unlike cash compensation, the value of stock-based compensation is determined using a complex formula that incorporates factors, such as market volatility, that are beyond the Company's control. Management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of iGATE's core business.
  • Foreign exchange (gain)/loss: In March 2012, the Company entered into a forward foreign exchange contract to mitigate the risk of changes in foreign exchange rates on payments related to the delisting of iGATE Computer. During the years of 2013 and 2012, the Company recognized foreign currency loss on re-measurement of escrow account balance and foreign exchange gain on re-measurement of redeemable non-controlling interest liability. iGATE believes that eliminating the non-capitalized items for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE’s current performance and comparisons to its past performance.
  • Delisting expenses: iGATE voluntarily delisted the equity shares of its majority owned subsidiary, iGATE Computer, from the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited and the American Depository Shares from the New York Stock Exchange. Delisting is an infrequent activity and expenses incurred in connection with the delisting are inconsistent in amount and are significantly impacted by the timing and nature of the delisting. iGATE believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current operating performance and comparisons to its past operating performance.  
  • Merger and reorganization expenses: iGATE is merging and reorganizing its overseas subsidiaries and branches with a view to simplifying the corporate structure and has incurred legal and professional expenses in this connection. Merger and reorganization is an infrequent activity and expenses incurred in connection therein are inconsistent in amount and significantly impacted by the timing and nature of the reorganization. iGATE believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current operating performance and comparisons to its past operating performance.
  • Preferred dividend and accretion to preferred stock: The Company has issued 8.00% Series B Preferred Stock. The Company also incurred issuance costs which have been netted against the proceeds received from the issuance of Series B Preferred Stock. The Series B Preferred Stock is being accreted over a period of six years. Although, the effect of inclusion of equivalent units of common stock towards convertible participating preferred stock is anti-dilutive for GAAP purposes, the non-GAAP diluted earnings per share has been calculated assuming the conversion of all outstanding shares of preferred stock into equivalent units of common stock. The Company believes that eliminating these expenses as well as inclusion of equivalent units of common stock towards the preference shares to compute diluted earnings per share for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current operating performance and comparisons to its past operating performance.

From time to time in the future, there may be other items that iGATE may exclude in presenting its financial results.

Forward-Looking Statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of the Company may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements regarding the business outlook, the expected performance of the Company’s products and services for its clients, and all other statements in this release other than statements of historical fact are statements that could be deemed forward-looking statements. Words such as “expect”, “potential”, “believes”, “anticipates”, “plans”, “intends” and other similar expressions are intended to identify such forward-looking statements. Forward-looking statements in the press release include, without limitation, statements regarding the business outlook, and the expected performance of the Company’s products and services for its clients, and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: uncertain global economic conditions, concentrated revenues, new organizational and operational strategies, continued pricing pressures and the significant indebtedness which will use a significant portion of its cash flows to service such indebtedness, as a result of which the Company might not have sufficient funds to operate its businesses in the manner it intends or has operated in the past. Additional risks relating to the Company are set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as well as the Company’s other reports filed with the Securities and Exchange Commission including the Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While the Company believes these estimates to be meaningful, actual results may differ materially from those contained in the forward-looking statements in this press release.  These amounts could also differ materially from actual reported amounts in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Company assumes no obligation and does not intend to update these forward-looking statements as circumstances change. This document does not constitute an offer to purchase or to sell securities in any jurisdiction.

                                     iGATE CORPORATION
                           CONDENSED CONSOLIDATED BALANCE SHEETS
                       (Amounts in thousands, except per share data)

                                                               December 31, December 31,
                                                                      2013         2012
                                                                (unaudited)    (audited)

    ASSETS
    Current assets:
    Cash and cash equivalents                                    $ 204,836     $ 95,155
    Restricted cash                                                360,000        3,072
    Short-term investments                                         181,401      510,816
    Accounts receivable, net                                       159,404      162,335
    Unbilled revenues                                               63,971       72,901
    Prepaid expenses and other current assets                       44,492       31,710
    Prepaid income taxes                                               838        8,541
    Deferred tax assets                                             10,235       14,655
    Foreign exchange derivative contracts                              836          782
    Total current assets                                         1,026,013      899,967

    Deposits and other assets                                       24,930       25,372
    Prepaid income taxes                                            32,160       28,351
    Property and equipment, net                                    165,581      167,252
    Leasehold land                                                  76,732       86,933
    Deferred tax assets                                             15,153       30,635
    Goodwill                                                       438,891      493,141
    Intangible assets, net                                         119,262      144,428
    Total assets                                                $1,898,722   $1,876,079

    LIABILITIES, REDEEMABLE NON-CONTROLLING
    INTEREST, PREFERRED STOCK AND SHAREHOLDERS'
    EQUITY

    Current liabilities:
    Accounts payable                                               $ 9,268      $ 7,799
    Line of credit                                                  52,000       77,000
    Senior Notes                                                   360,000            -
    Term loans                                                      90,000       35,000
    Accrued payroll and related costs                               57,093       54,802
    Other accrued liabilities                                       79,785       79,008
    Accrued income taxes                                             5,802        9,134
    Foreign exchange derivative contracts                              909        7,516
    Deferred revenue                                                17,776       17,890
    Total current liabilities                                      672,633      288,149

    Other long-term liabilities                                      3,532        3,265
    Senior notes                                                   410,000      770,000
    Term loans                                                     270,000      263,500
    Accrued income taxes                                            13,936       17,272
    Deferred tax liabilities                                        41,717       55,494
    Total liabilities                                            1,411,818    1,397,680

    Redeemable non-controlling interest                                  -       32,422

    Series B Preferred stock , without par value                   410,371      378,474

    Shareholders' equity:
    Common shares, par value $0.01 per share                           594          585
    Common shares held in treasury, at cost                        (14,714)     (14,714)
    Additional paid-in capital                                     204,143      185,340
    Retained earnings                                              268,750      170,875
    Accumulated other comprehensive loss                          (387,115)    (274,583)
    Total iGATE Corporation shareholders' equity                    71,658       67,503
    Non-controlling interest                                         4,875            -
    Total equity                                                    76,533       67,503
    Total liabilities, redeemable
    non-controlling interest, preferred stock
    and shareholders' equity                                    $1,898,722   $1,876,079



                                    iGATE CORPORATION
                       CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Amounts in thousands)

                             Three Months ended              Year ended
                                 December 31,                December 31,
                              2013         2012           2013          2012
                        (unaudited)  (unaudited)    (unaudited)     (audited)
    Revenues             $ 299,333    $ 271,582    $ 1,150,925    $ 1,073,930
    Cost of revenues
    (exclusive of
    depreciation and
    amortization)          180,159      161,430        698,232        649,810
    Gross margin           119,174      110,152        452,693        424,120
    Selling, general
    and administrative
    expense                 51,257       44,123        190,261        171,471
    Depreciation and
    amortization             8,884        9,625         35,189         46,382
    Income from operations  59,033       56,404        227,243        206,267
    Other income
    (loss), net            (20,010)     (18,987)       (47,033)       (75,359)
    Income before
    income taxes            39,023       37,417        180,210        130,908
    Income tax expense       5,768        6,592         50,229         30,599
    Net income before non
    controlling interest    33,255       30,825        129,981        100,309
    Non controlling
    interest                   112            -            209          4,476
    Net income
    attributable to
    iGATE Corporation       33,143       30,825        129,772         95,833
    Accretion to
    preferred Stock            133          109            494            404
    Preferred dividend       8,157        7,457         31,403         29,047
    Net income
    attributable
    to iGATE common
    shareholders          $ 24,853     $ 23,259       $ 97,875       $ 66,382


                                                        iGATE CORPORATION
                                                        Earnings Per Share
                                          (Amounts in thousands, except per share data)

                                             Three Months Ended          Year Ended
                                                  December 31,           December 31,
                                               2013        2012        2013       2012
                                         (unaudited) (unaudited) (unaudited) (audited)
    Net income attributable to iGATE
          common shareholders              $ 24,853    $ 23,259    $ 97,875  $ 66,382
       Add: Dividends on Series B
             Preferred Stock                  8,157       7,457      31,403    29,047
                                             33,010      30,716     129,278    95,429

           Less: Dividends on
        Series B Preferred Stock      [A]     8,157       7,457      31,403    29,047
          Undistributed Income             $ 24,853    $ 23,259    $ 97,875  $ 66,382

    Allocation of Undistributed Income
             Common stock             [B]    18,435      17,526      72,597    50,020
       Unvested restricted stock      [C]         7          14          28        39
       Series B Preferred Stock       [D]     6,411       5,719      25,250    16,323
                                           $ 24,853    $ 23,259    $ 97,875  $ 66,382

    Shares outstanding for allocation
       of undistributed income:
            Common stock                     58,438      57,543      58,438    57,543
       Unvested restricted stock                 23          45          23        45
       Series B Preferred Stock              20,325      18,778      20,325    18,778
                                             78,786      76,366      78,786    76,366

    Weighted average shares outstanding:
            Common stock              [E]    58,372      57,499      58,015    57,183
       Unvested restricted stock      [F]        23          45          23        45
       Series B Preferred Stock       [G]    20,325      18,778      20,325    18,778
                                             78,720      76,322      78,363    76,006

        Weighted average common
           stock outstanding                 58,372      57,499      58,015    57,183
     Dilutive effect of stock options
     and restricted shares outstanding        2,133       1,614       1,815     1,638
        Dilutive weighted average
           shares outstanding         [H]    60,505      59,113      59,830    58,821

     Distributed earnings per share:
        Series B Preferred Stock    [I=A/G]   $0.40       $0.40       $1.55     $1.55

     Undistributed earnings per share:
             Common stock           [J=B/E]   $0.32       $0.30       $1.25     $0.87
       Unvested restricted stock    [K=C/F]   $0.32       $0.30       $1.25     $0.87
       Series B Preferred stock     [L=D/G]   $0.32       $0.30       $1.25     $0.87

        Basic earnings per share
             from operations :
             Common stock             [J]     $0.32       $0.30       $1.25     $0.87
       Unvested restricted stock      [K]     $0.32       $0.30       $1.25     $0.87
       Series B Preferred stock      [I+L]    $0.72       $0.70       $2.80     $2.42

      Diluted earnings per share
            from operations        [[B+C]/H]  $0.30       $0.30       $1.21     $0.85


The number of shares of outstanding Series B Preferred Stock for which the earnings per share exceeded the earnings per share of common stock aggregated to 20.3 million and 18.8 million for the years ended December 31, 2013 and 2012 respectively. These shares were excluded from the computation of diluted earnings per share as they were anti-dilutive.

                                                   iGATE CORPORATION
                             Reconciliation of Selected GAAP Measures to Non-GAAP Measures
                                      (Amounts in thousands, except per share data)
                                                         (unaudited)

                                             Three Months ended              Year ended
                                                 December 31,                December 31,
                                             2013          2012          2013          2012
    GAAP Net income attributable to
    iGATE common shareholders            $ 24,853      $ 23,259      $ 97,875      $ 66,382

    Adjustments
    Preferred dividend and accretion
    to preferred stock                      8,290         7,566        31,897        29,451
    Amortization of intangible assets       2,558         2,749        10,538        11,555
    Stock based compensation                4,597         3,004        14,840        12,274
    Delisting expenses                          -         1,497            93         5,029
    Merger and reorganization expenses      2,139           708         7,403         1,472
    Foreign exchange (gain) / loss on
    acquisition hedging and
    remeasurement                               -        (1,504)          489         3,755
    Forfeiture of vested stock options          -             -        (3,005)            -
    Income tax adjustments                 (2,768)       (2,313)       (9,796)       (8,908)
    Non-GAAP Net income attributable
    to iGATE common shareholders         $ 39,669      $ 34,966     $ 150,334     $ 121,010

    Weighted average shares
    outstanding, Basic                     58,395        57,544        58,038        57,228
    Add back: assumed preferred
    stock conversion                       20,325        18,778        20,325        18,778
    Non-GAAP weighted average shares
    outstanding , Basic                    78,720        76,322        78,363        76,006

    Weighted average dilutive common
    shares outstanding                     60,505        59,113        59,830        58,821
    Add back: assumed preferred
    stock conversion                       20,325        18,778        20,325        18,778
    Weighted average dilutive common
    equivalent shares outstanding          80,830        77,891        80,155        77,599

    Basic EPS (GAAP) to Basic EPS (Non-GAAP):

    Basic EPS (GAAP) from operations        $0.32         $0.30         $1.25        $ 0.87
    Preferred dividend and accretion
    to preferred stock                       0.11          0.10          0.41          0.39
    Amortization of intangible assets        0.03          0.04          0.13          0.15
    Stock based compensation                 0.05          0.04          0.19          0.16
    Delisting expenses                          -          0.02          0.01          0.07
    Merger and reorganization expenses       0.03          0.01          0.09          0.02
    Foreign exchange (gain) / loss on
    acquisition hedging and
    remeasurement                               -        (0.02)          0.01          0.05
    Forfeiture of vested stock options          -             -        (0.04)             -
    Income tax adjustments                  (0.04)        (0.03)        (0.13)        (0.12)
    Basic EPS (Non-GAAP) from operations   $ 0.50        $ 0.46        $ 1.92        $ 1.59

    Diluted EPS (GAAP) to Diluted EPS
    (Non-GAAP):
    Diluted EPS (GAAP) from operations     $ 0.30        $ 0.30         $1.21        $ 0.85
    Preferred dividend and accretion to
    preferred stock                          0.11          0.10          0.41          0.38
    Amortization of intangible assets        0.03          0.03          0.13          0.15
    Stock based compensation                 0.05          0.04          0.19          0.16
    Delisting expenses                          -          0.02          0.00          0.06
    Merger and reorganization expenses       0.03          0.01          0.09          0.02
    Foreign exchange (gain) / loss on
    acquisition hedging and
    remeasurement                               -         (0.02)         0.01          0.05
    Forfeiture of vested stock options          -             -         (0.04)            -
    Income tax adjustments                  (0.03)        (0.03)        (0.12)        (0.11)
    Diluted EPS (Non-GAAP) from operations $ 0.49        $ 0.45        $ 1.88        $ 1.56


                              iGATE CORPORATION
        Reconciliation of Net Income, Net of Tax, to Adjusted EBITDA
                           (Amounts in thousands)
                                 (unaudited)

                       Three Months ended      Twelve Months ended
                           December 31,            December 31,
                         2013       2012        2013          2012

    Net income       $ 33,255   $ 30,825   $ 129,981      $ 100,309

    Adjustments
    Depreciation
    and
    amortization        8,884      9,625      35,189         46,382
    Interest
    expense            20,554     21,617      87,579         83,766
    Income tax
    expense             5,768      6,592      50,229         30,599
    Other income,
    net                (4,735)    (4,516)    (44,645)       (28,491)
    Foreign
    exchange
    (gain) / loss       4,191      1,886       4,099         20,084
    Stock based
    compensation        4,597      3,004      14,840         12,274
    Delisting
    expenses                -      1,497          93          5,029
    Merger and
    reorganization
    expenses            2,139        708       7,403          1,472
    Adjusted
    EBITDA (a
    non-GAAP
    measure)         $ 74,653   $ 71,238   $ 284,768      $ 271,424



The Company presents the non-GAAP financial measures EBITDA and adjusted EBITDA because management uses these measures to monitor and evaluate the performance of the business and believes that the presentation of these measures will enhance investors’ ability to analyze trends in the business and evaluate the Company's underlying performance relative to other companies in the industry.

Non-GAAP Disclosure of Adjusted EBITDA

iGATE presents Adjusted EBITDA as a supplemental measure of its performance. iGATE defines Adjusted EBITDA as net income plus (i) depreciation and amortization, (ii) interest expense, (iii) income tax expense, minus (iv) other income, net plus (v) foreign exchange loss, (vi) stock based compensation (vii) acquisition expenses (viii) severance expenses, (ix) delisting expenses and (x) merger and reorganization expenses. iGATE eliminated the impact of the above because it does not consider them as indicative of its ongoing operating performance. These adjustments are itemized below. You are encouraged to evaluate these adjustments and the reasons iGATE considers them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future iGATE may incur expenses that are the same as or similar to some of the adjustments in this presentation. iGATE's presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.

iGATE presents Adjusted EBITDA because iGATE believes it assists investors and analysts in comparing iGATE's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of iGATE's core operating performance. In addition, iGATE uses Adjusted EBITDA: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of its business strategies and (iii) to measure iGATE's compliance with certain covenants of its credit agreement and indenture.

Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:

  • Adjusted EBITDA does not reflect iGATE's cash expenditures or future requirements of cash for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, iGATE's working capital needs; and
  • Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on iGATE's debts; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often need to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements; non-cash compensation is and will remain a key element of iGATE's overall long-term incentive compensation package, although iGATE excludes it as an expense when evaluating its ongoing operating performance for a particular period; Adjusted EBITDA does not reflect the impact of certain cash charges resulting from matters iGATE considers not to be indicative of its ongoing operations; and other companies in iGATE's industry may calculate adjusted EBITDA differently than iGATE does, limiting its usefulness as a comparative measure.

Because of these limitations, adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. iGATE compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally.

Media Contact

Prabhanjan Deshpande “PD”
+91-80-4104-5006
[email protected]  

Investor Contact

Salil Ravindran
+1-510-298-8400
[email protected]

Regional Media Contacts

India

Sushmita Sarkar
Adfactors PR
+91-9820661186
[email protected]  

North America

Anu Kher    
Gutenberg Communications
+1-646-775-6301
[email protected]  

Meagan Ostrowski
Gutenberg Communications
+1-212-810-4394
[email protected]  

Europe

Radha Ahlstrom-Vij
Gutenberg Communications
+44-75-8424-1132
[email protected]


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, will discuss how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He will discuss how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...