Virtusa Corporation(NASDAQ GS: VRTU), a global business consulting and IT outsourcing company that accelerates business outcomes for its clients, reported consolidated financial results for the first quarter fiscal 2018, ended June 30, 2017.
Revenue for the first quarter of fiscal 2018 was $227.3 million, an increase of 0.6% sequentially and 10.6% year-over-year. On a constant currency basis, (1) first quarter revenue was flat sequentially and increased 12.7% year-over-year.
Virtusa reported GAAP income from operations of $6.1million for the first quarter of fiscal 2018, compared to income from operations of $10.2 million for the fourth quarter of fiscal 2017 and a loss from operations of $1.8 million for the first quarter of fiscal 2017.
On a GAAP basis, net income available to common shareholders for the first quarter of fiscal 2018 was $3.0million, or $0.10per diluted share, compared to$10.5 million, or $0.34per diluted share, for the fourth quarter of fiscal 2017, and a net loss of $6.3 million, or $(0.21)per diluted share, for the first quarter of fiscal 2017.
Balance Sheet and Cash Flow
The Company ended the first quarter of fiscal 2018 with $235.1million of cash, cash equivalents, and short-term and long-term investments (4).
Cash flow from operations was $1.1million for the first quarter of fiscal 2018. In the first quarter of fiscal 2018, Virtusa repurchased 947,706 shares of its common stock at an average price of $28.80 for a total of $27.3 million.
Virtusa’s Chairman and CEO Kris Canekeratne stated “We are pleased with our first quarter fiscal 2018 results and the momentum we are building in our business.
We are announcing key changes to our organizational model that will help us further position Virtusa for above-industry growth. Raj Rajgopal has been appointed President, Digital Business Strategy, and in his new role will lead our efforts to build our digital business strategy offerings.
Samir Dhir has been appointed President of Virtusa, and will assume leadership of our Banking and Financial Services (BFS) and Enterprise Technology & Solutions (ETS) industry groups.
I want to congratulate both Samir and Raj on their recent appointments. I firmly believe these organizational changes, combined with the investments we have made to expand our addressable market, position Virtusa well for long-term success.”
Chief Financial Officer Ranjan Kalia said, “FY 2018 is off to a solid start as we delivered Q1 revenue at the high end of our guidance range and operating margins at the midpoint of our expectations. Non-GAAP EPS came in below the midpoint of guidance primarily due to non-operating income line items.
We are pleased to raise the midpoint of our fiscal 2018 revenue guidance, which includes strong sequential growth in the second quarter. Lastly, I look forward to working closely with Raj and Samir in their new roles and intensifying our efforts to realize sustainable cost synergies.”