WNS announces quarterly earnings

February 8th, 2008 - 1:56 pm ICT by admin  

New York/ Mumbai, Feb 8 (ANI/Business Wire India): WNS (Holdings) Limited, a leading provider of offshore business process outsourcing (BPO) services, announced results for the quarter ended December 31, 2007 and raised its net income guidance for fiscal 2008.
Revenue for the third fiscal quarter was $115.6 million, an increase of 13.4% over the corresponding quarter in the prior fiscal year. Revenue less repair payments of $74.1 million increased 29.5% over the same period a year ago.
Revenue less repair payments for the quarter did not include any revenue contribution from First Magnus Financial Corporation due to its bankruptcy filing in August 2007. However, revenue less repair payments for the corresponding quarter in the prior fiscal year included $3.8 million of revenue from this client.
Net income for the third fiscal quarter was $5.5 million, a decrease of 23.1% over the corresponding quarter in the prior fiscal year. Net income (excluding share-based compensation, related fringe benefit taxes and amortization of intangible assets) was $8.1 million, a decrease of 8.9% from the corresponding quarter last year. This decrease is primarily due to the appreciation of the Indian Rupee against the US Dollar.
WNS recorded a basic income per share of $0.13. Basic income per share (excluding share-based compensation, related fringe benefit taxes and amortization of intangible assets) was $0.19 for the quarter.
“With a solid third quarter behind us and the continued secular growth trend in offshore BPO, we remain focused on growth,” said Neeraj Bhargava, Group Chief Executive Officer.
“With low mortgage and banking sector exposure, after the loss of First Magnus as a client, and a steady flow of opportunities in other sectors we are optimistic about growth even in a challenging economic environment,” Neeraj added.
Financial Highlights: Fiscal Third Quarter Ended December 31, 2007
– Quarterly revenue of $115.6 million, up 13.4% from the corresponding quarter last year.
– Quarterly revenue less repair payments of $74.1 million, up 29.5% from the corresponding quarter last year.
– Quarterly net income of $5.5 million, down 23.1% from the corresponding quarter last year.
– Quarterly net income (excluding share-based compensation, related fringe benefit taxes and amortization of intangible assets) of $8.1 million, down 8.9% from the corresponding quarter last year.
– Quarterly basic income per share of 13 cents, down from basic income per share of 18 cents for the corresponding quarter last year.
– Quarterly basic income per share (excluding share-based compensation, related fringe benefit taxes and amortization of intangible assets) of 19 cents, down from 22 cents for the corresponding quarter last year.
– Cash flows from operating activities of $20.7 million for the nine months ended December 31, 2007, down from $26.4 million for the nine months ended December 31, 2006
Fiscal 2008 Guidance
WNS raises its November 14, 2007 guidance for fiscal 2008:
– Revenue less repair payments is expected to be between $290 million and $295 million, in line with the company’s previous guidance.
– Net income (excluding share-based compensation and related fringe benefit taxes, amortization and impairment of goodwill and intangible assets) is expected to be between $34.0 million to $ 36.0 million. This represents a $1.0 million increase from the company’s previous guidance of $33 million to $35 million.
“We are targeting better than expected profits for the year due to expansion of current client relationships, the accelerated growth of our analytics services businesses, and an ability to control costs, which have allowed us to weather pressure from currency appreciation and declines in mortgage revenue,” said Bhargava. (ANI)

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