iGATE Boosts Income and Customer Count
October 20, 2009

iGATE Corporation's sales declined in the most recent quarter but the Fremont outsourcing company said it grew its customer base and boosted income.

Revenue for the quarter ended September 30 was $49.1 million, a 11.5 percent decrease from the same period a year ago.

Net income was $8.9 million, or 16 cents per diluted share, compared to $8.5 million or 15 cents per diluted share in the 2008 third quarter.

iGATE said it added 6 new customers during the quarter, bringing the total to 87. Some were companies that are outsourcing some work for the first time, a positive development for iGATE, said CEO Phaneesh Murthy.

Amid the devastation of the Great Recession, Murthy said, “a lot of operations work is getting restructured now. Companies are realizing they need to restructure costs and do things differently,” which likely will increase opportunities for Igate, he said.

iGATE performs IT consulting, software development and other technology work for clients. The company also helps businesses with tasks like running call centers, executing transactions and overseeing order entry, accounts receivable and purchasing.