New York: Nasdaq-listed software company iGate on Wednesday posted 70.56 per cent increase in net income at $14.72 million for the quarter ended December 31, 2010, but cautioned against a slower demand environment in 2011.
"Q4 was an extremely strong quarter for us, thanks to iTOPS Consulting (one of its products) and growth in existing accounts.
"However, 2011 doesn't look very strong from a demand perspective and it could be the second or third quarter before we start seeing some action," iGATE CEO Phaneesh Murthy said.
The company had registered a net income of $8.63 million in the fourth quarter of 2009.
iGate added 82 (net) employees during the reported quarter, taking the total headcount to 8,360 employees as on December 31, 2010. The company also added three new customers during the quarter.
Murthy said the quarter saw "very strong earnings and cash flow" despite reporting more than $3.2 million in acquisition-related expenses.
The US-based company in a consortium with private-equity firm Apax Partners, recently announced buying 63 per cent stake in Indian IT firm Patni Computer Systems from the three Patni brothers and General Atlantic for about $921 million.
iGate has also made an offer to buy 20.6 per cent more of Patni, which could cost another $301 million if all the shares are tendered.
iGate had secured a $700 million bridge loan from RBC Capital Markets and Jefferies & Co to help finance the acquisition. It expects the transaction to be cash accretive by 2012.
The company reported revenues at $81.01 million for the quarter ended December 31, 2010 as against $52.40 million, up 54.59 per cent.
For the year ended December 2010, iGate's net income was up 81.13 per cent at $51.75 million, while revenue increased 45.31 per cent at $280.59 million.
The company had cash and cash equivalents to the tune of $67.92 million for the reported quarter.
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