|07/26/16 07:44 PM||Virtusa Corporation: Virtusa Announces Date of First Quarter 2017 Financial Results Release, Conference Call and Webcast|
|07/26/16 03:28 PM||Virtusa Announces Date of First Quarter 2017 Financial Results Release, Conference Call and Webcast - [at noodls] - WESTBOROUGH, Mass.--(BUSINESS WIRE)--Jul. 26, 2016-- Virtusa Corporation (NASDAQ GS: VRTU), a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry ...|
|07/26/16 09:28 AM||VirtusaPolaris Designated a Star Performer in Everest Group’s PEAK Matrix™ for Independent Testing Services - [at noodls] - WESTBOROUGH, Mass.--(BUSINESS WIRE)--Jul. 26, 2016-- VirtusaPolaris, the market-facing brand of Virtusa Corporation and Polaris Consulting & Services, Ltd., and a leading global provider of information ...|
|07/25/16 07:22 PM||Fast-growing global IT firm picks Dublin for regional office, plans 50 jobs|
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|07/23/16 10:29 AM||Price Target of $42.857 Set For Virtusa Corporation (NASDAQ:VRTU) - RealistInvestor.com|
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|07/21/16 01:01 PM||BRIEF-Virtusa says co purchased multiple foreign currency forward contracts - SEC filing - * Says on July 18, co purchased multiple foreign currency
forward contracts designed to hedge fluctuation in Indian rupee
against U.K. pound sterling
|07/21/16 11:32 AM||VIRTUSA CORP Files SEC form 8-K, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Shee - |
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|07/21/16 09:00 AM||VirtusaPolaris Receives Stevie Award Recognitions for Investor Relations and Technical Innovation - [Business Wire] - VirtusaPolaris, the market-facing brand of Virtusa Corporation and Polaris Consulting & Services, Ltd., and a leading worldwide provider of information technology consulting and outsourcing services, today announced that it has been awarded two Stevie Award recognitions; a Gold award for Investor Relations and a Silver award for Most Innovative Technology Company of the Year.|
|07/20/16 08:15 PM||Virtusa Corporation (NASDAQ:VRTU): Sell-Side Ratings and Company Earnings Glance - Engelwood Daily|
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|07/20/16 10:02 AM||Virtusa Corporation (VRTU) Hits a New 52-Week Low|
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|07/19/16 08:06 AM||Shares Lower on the Year Virtusa Corporation (NASDAQ:VRTU) - Press Telegraph|
|07/18/16 06:10 AM||Review on Stock Valuation for: Virtusa Corporation (NASDAQ:VRTU) - TGP|
|07/15/16 06:11 PM||Virtusa Corporation (NASDAQ:VRTU) Current Analyst Ratings - Fiscal Standard|
|07/14/16 07:25 PM||Virtusa Corporation (NASDAQ:VRTU) Analyst Rating Update - Investor Newswire|
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|07/13/16 10:00 AM||Virtusa Corporation (NASDAQ:VRTU) Shorted Shares Increased By 7.76% - Consumer Eagle|
|07/11/16 06:14 AM||Stock Performance Rundown on: Virtusa Corporation (NASDAQ:VRTU) - Press Telegraph|
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|07/07/16 07:15 PM||Virtusa Corporation (VRTU) Saw a New 52-Week Low - Finance Daily|
|07/03/16 06:17 PM||Virtusa Corporation (VRTU) Hits New 52-week Low During June 30 Session|
|07/01/16 05:51 PM||ETF’s with exposure to Virtusa Corp. : July 1, 2016 - |
|06/27/16 03:37 PM||Virtusa Corp. – Value Analysis (NASDAQ:VRTU) : June 27, 2016 - |
|06/24/16 07:39 AM||Virtusa Corp. breached its 50 day moving average in a Bullish Manner : VRTU-US : June 24, 2016 - |
|06/23/16 09:19 AM||VirtusaPolaris Awarded Adobe Experience Manager 6 Specialization for Delivery of Advanced Digital Solutions - [at noodls] - WESTBOROUGH, Mass.--(BUSINESS WIRE)--Jun. 23, 2016-- VirtusaPolaris, the market-facing brand of Virtusa Corporation and Polaris Consulting & Services, Ltd. and a leading worldwide provider of information ...|
|06/14/16 05:37 AM||Insiders Are Buying and Selling – Virtusa Corporation (NASDAQ:VRTU)|
|06/13/16 11:09 AM||ETF’s with exposure to Virtusa Corp. : June 13, 2016 - |
|05/27/16 03:57 PM||VIRTUSA CORP Files SEC form 10-K, Annual Report - |
|05/19/16 07:06 PM||ETF’s with exposure to Virtusa Corp. : May 20, 2016 - |
|05/18/16 03:14 PM||VIRTUSA CORP Files SEC form 8-K/A, Completion of Acquisition or Disposition of Assets, Financial Statements and Exhib - |
|05/17/16 03:29 PM||Virtusa Corp. :VRTU-US: Earnings Analysis: Q4, 2016 By the Numbers - |
|05/17/16 03:12 PM||Virtusa to Present at Upcoming Investor Conferences - [at noodls] - WESTBOROUGH, Mass.--(BUSINESS WIRE)--May 17, 2016-- Virtusa Corporation (NASDAQ: VRTU), a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry ...|
|05/16/16 02:16 PM||Virtusa Q4'16 Earnings Conference Call: Full Transcript -
Good day and welcome to the Virtusa Corporation (NASDAQ: VRTU) Fiscal Fourth Quarter 2016 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Will Maina, of ICR. Please go ahead sir.
Will Maina: Investor Relations-ICR:
Thank you, Lee-Ann, and welcome to Virtusa’s fourth quarter and full fiscal year 2016 earnings conference call where we will be discussing our financial results for Virtusa’s fourth quarter and full year ended March 31, 2016. On the call with me is Kris Canekeratne, Chairman and Chief Executive Officer; and Ranjan Kalia, Executive Vice President & Chief Financial Officer.
Certain statements made on this call that are not based on historical information are forward-looking statements which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act for 1995. During this call, we may make expressed or implied forward-looking statements relating to, among other things, Virtusa’s expectations and assumptions concerning Management’s forecast of financial performance, the growth of Virtusa’s business, Virtusa’s ability to realize the intended benefits, revenues, and other synergies of the Polaris acquisition, including the ability to integrate Virtusa and Polaris’s business and operations, the ability of Virtusa’s clients to realize benefits from the use of Virtusa’s IT services and Management’s plans, objectives, and strategies. These statements are neither promises nor guarantees and are subject to a variety of risks and certainties, many of which are beyond Virtusa’s control which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speaks only as of the date hereof. Virtusa undertakes no obligation to update or revise the information disclosed during this call whether as a result of new information, future events, circumstances, or otherwise.
Other statements on this call also include certain non-GAAP financial information as defined by the SEC. We present constant currency revenue to provide a framework for assessing how our revenue performed excluding the effect of foreign currency rate fluctuations. We provide non-GAAP adjusted operating income, non-GAAP adjusted net income, and non-GAAP earnings per share, which we believe provide insight into the operational performance of our business. Reconciliations of non-GAAP to GAAP measures are included in today’s earnings press release and data sheet which can be found on the Investor Relations page of our website. We also present the reconciliation of cash, cash equivalents short-term and long-term investments, that we believe provides insight into our total cash position and overall liquidity. For additional disclosure regarding these and other risks faced by Virtusa, see the disclosures contained in Virtusa’s public filings with the Securities and Exchange Commission and our press release.
With that I would like to turn the call over to Kris.
Kris Canekeratne:Chairman and Chief Executive Officer:
Thanks Will and thank you for joining us on our fourth quarter and full-year fiscal 2016 conference call. We are pleased with our fourth quarter results, despite the expected sequential headwinds we faced in our insurance segment. Our fourth quarter revenue were $171.9 million an increase of 14% sequentially and 36% year-over-year including revenue from Polaris. Excluding the partial quarter revenue contribution from Polaris, we posted sequential revenue growth of 1.2% and year-over-year growth of 21% in the fourth quarter.
With respect to the overall demand environment feedback from the frontline is that clients IT budgets are flat in calendar year 2016 with a slower than expected June quarter spending pattern compared with prior year. We attribute this slower spending pattern in our fiscal Q1 to four main sectors. First corporate restructuring at certain clients has caused a delay or reduction in the project renewal.
Second, delayed program starts at some of Polaris’s banking clients as well as the expected spend reductions at Citi. Third; softness at a few of our insurance segment side and fourth typical seasonal revenue declined from our telecom side. These factors are expected to have an adverse impact on our Q1 fiscal year 2017 revenue growth.
Despite the Q1 softness, our new business pipeline is growing and our win rates remain consistent, which gives us comfort that our revenue growth will began to improve in the fiscal second quarter. Ranjan will provide you with more color on our fiscal 2017 guidance later in the call.
Within the current demand environment, our clients continue to look to reduce the businesses usual costs of their legacy IT environment and to stimulate and simultaneously reinvest these savings into enabling business transformation. Virtusa’s core capabilities and ongoing areas of investments remain extremely well aligned with this demand. Our value proposition of enabling our clients to run the business more efficiently secure the business and grow the business is leading Virtusa to increasingly be viewed as a transformational partner of choice.
Turning to our integration of Polaris Consulting and Services. As we previously announced, to be close the first phase of the transaction, then we acquired 51.7% of Polaris’s outstanding stock from its founding shareholders and promoters on March 3, 2016. We then completed phase two of the transaction in April 2016, when we acquired an additional 26% of Polaris from its public shareholders as part of a mandatory tender offer taking our ownership in the Company to 77.7% of fully diluted shares outstanding.
I am pleased to say, that we have made good progress and completed our organizational changes to reflect our go-to-market strategy and organizational structure. We have created to growth engines inside Virtusa, Polaris, global banking and financial services or BFS which includes all the banking and financial services, operations of Virtusa and Polaris will be led by Jitin Goyal and enterprise technology services or ETS, which includes insurance, communications and technology, media, information and other will be lead by Raj Rajgopal.
We have defined roles and put systems in place that are aligned with this go-to-market strategy and we expect our IT, HR and finance operations will be fully integrated by the end of this calendar year. Our sales and delivery team have been unified and reorganized around of a BFS and ETS business units and they have already begun to deliver our plans to drive revenue synergies this fiscal year.
On that note, let me now spend a moment giving you some insight into the early successes we are generating as a combined Virtusa, Polaris. You may recall that when we announced the acquisition in November of 2015, we discussed three key strategic reasons why we believe Virtusa and Polaris were a strong fit and why the combination of our two companies would help create a stronger platform to drive our long-term growth and shareholder value.
First, the combination of our two companies creates a unique fully integrated provider of comprehensive solutions and services across the banking and financial services industry. Second, our combination meaningfully expands of a addressable market. And third, the transaction enhances our ability to pursue larger consulting outsourcing contracts across all the industries we operate in.
I am pleased to say that since announcing the deal we have seen increased development of new large opportunities in our pipeline and in fact we have already signed a handful of new synergy win in banking and financial services that illustrate our strategic rationale for the acquisition. For example, we recently signed a synergy deal with one of the largest bank in the Northern Europe. This is a new logo win for us. The engagement covers the end-to-end to lifecycle for delivering the right payment proposition across customers segments in a post CSD2 of payments, services, directive warrants.
In this win , we are leveraging Polaris vast domain expertise in payments transformation as well as upstream business consulting expertise from Virtusa business consulting to deliver strategy and a technology roadmap for a constantly evolving payments business. The program is at addressing challengers foreseen in a highly comparative $600 million annual addressable revenue opportunity for our clients and has potential to transform how payments will be executed over the next decade.
In another example, we want to a deal with an existing Polaris commercial banking clients that we have chosen to provide a set of Virtusa’s digital solution including data aggregation, data analytics and user experience to these clients. These are two recent examples of how our ability to offer a fully integrated set of end-to-end BSF solution is enabling us to both attract and win new clients as well as expand our addressable market opportunity across our combined of Virtusa Polaris client base.
Finally I would like to point out a recent multimillion dollar win, with an existing large Virtusa banking client as a strategic partner to expand resources for the client’s consumer banking business. In this case in addition to our integrated expertise in the required areas of retail and commercial banking and comprehensive proven approach of captive enablement for other clients. A key reason by we were chosen in this competitive process over other larger generation one vendors was the expanded scale of Virtusa, Polaris. As I am sure you can tell , we are extremely pleased with our progress so far in integrating Polaris and Virtusa.
An early evidence suggests that the depth and breadth of our combined BFS solutions are resonating quite effectively in the market and are helping to set us apart from competitors.
Looking forward, we have identify over $100 million of cumulative revenue synergies over the next three fiscal years from the Polaris acquisition primarily driven by cross-selling of solutions and services into our combined portfolio of banking and financial services plan. We have a detailed planning place to meet that goal and remained confident in our ability to deliver these results based on the significant opportunities we see in the market as well as the solid forward progress we have achieved so far.
Now I would like to provide some additional details on the current demand environment and how they are helping our clients, transform their businesses to achieve their business objectives. As I mentioned earlier our clients across industry verticals continued to address the dual man based they are facing to reduced costs by improving operational efficiencies and reducing risks while at the same time investing in revenue growth. In telecoms example, communication services providers are being challenged to serve their customers more profitably and not just nearly focused on increasing their number of subscribers. They are looking to technologically improve their revenue performance while at the same time streamline their business operation.
A great example of how we are helping our clients on the front, is with a large Europe based BSP. This time had high operational cost and poor customer experience. Virtusa’s consultants work with the company’s business operation, field engineers and technology teams and creates problems the need for better diagnostics and analytics of field engineers. This eventually led to Virtusa designing and implementing in mobile App for field engineers providing real time remote testing and diagnostics historic fault analysis and route optimization capabilities.
Our work resulted in the rationalization of capabilities and functionalities of eight devices down to one device significantly reduced their operating expenses provides a far better customer experience and increased up-sell and cross-sell opportunities by 10%.
Across several of our industry segments we are seeing is strong emerging focus on intelligent, automation, specifically, robotic process automation or RPA and smart automation via machine learning. The goals of RPA include decreasing manual processes to reduce human efforts and error, reduced costs and increase quality of services. RPA also enables business intelligence, analytics, and auditing. Gartner is predicting that by 2018, 40% of outsourced services will liberate smart machine technology.
Virtusa has focused considerable effort and investment in the area of RPA and cognitive computing. We are leveraging both our owned agnostic RPA tool and setup solutions called Centroid RPA and we are partnering with other RPA vendors such as Arago, Blue Prism, automation anywhere and work fusion to serve our clients. On the side of running the business more efficiently, we see and accelerating shift in demand from applying labor arbitrage to drive costs down to organizations employing automation solution such as RPA to drive higher efficiencies and consequently higher costs savings. We have numerous clients approaching us to help evaluate areas where they can implement RPA particularly in the banking financial services and insurance segments and we believe that it will be a significant area of opportunity for us in the future.
In conclusion, I remain excited about the breadth of growth opportunities available to Virtusa. Our differentiated solutions clearly address the needs of our clients’ co-objective of growing revenue improving operating efficiencies, reducing costs and mitigating risks. While we are seeing some short-term revenue headwinds in the first quarter, our new business pipeline is solid and our win rates remain consistent and we believe we are well positioned to deliver on our revenue and earnings growth outlook in fiscal year 2017.
We are on track with our integration Polaris and our strategic plan for acquiring the company is already showing up in terms of pipeline development and early synergy win in BFS. in fiscal 2017, our top priorities are clear, we will focus on dedicating resources towards ensuring a smooth integration of our two firms executing our growth plan within eye towards raising revenue growth back to above industry rates demonstrating excellence across our plan base to grow and expand our presence and with particular emphasis at Citi and other large enterprisers where we have an opportunity to leverage our proffered supplier status to expand our partnerships and hiring and developing the best talent in the industry and providing a high performance ramified work environment that empowers and stimulates innovation.
Now let me turn the call over to Ranjan who will provide more details on our results and our fourth quarter and fiscal year 2017 guidance.
Ranjan Kalia:Executive Vice President & Chief Financial Officer:
Thanks Kris and good morning to everyone. Let me start by summarizing the results of our fourth quarter and fiscal year 2016. I will then provide our current non-GAAP guidance for both the first quarter and fiscal year ending March 31, 2017 before opening the call for questions.
Revenue for our fiscal fourth quarter was $171.9 million up 14% sequentially and 36% year-over-year. As you are aware we completed the acquisition of a majority interest in Polaris consulting in services on March 3, 2016. In the fourth quarter Polaris contributed approximately $19.4 million of revenue which was above our prior expectations of approximately $17 million, primarily due to lower anticipated India to U.S. GAAP adjustments.
Excluding the partial fourth quarter revenue contribution from Polaris, revenue increased 1.2% sequentially and 21% year-over-year on a reported basis and was 2.2% sequentially and 22% year-over-year on a constant currency basis. Our organic sequential revenue growth was in line with our prior guidance range and industry growth trends. Gross margin in the fourth quarter was 35.1% compared to 35.7% in the prior quarter and 36.7%...
Please stand by while we reconnect. And we are now reconnected.
This is Ranjan. I will start my prepared remarks from the beginning again. Thanks Kris, and good morning to everyone. Let me start by summarizing the results of our fourth quarter and fiscal year 2016.
I would then provide our current non-GAAP guidance for both the first quarter and fiscal year ending March 31, 2017, before opening the call for questions. Revenue for our fiscal fourth quarter was $171.9 million up 14% sequentially and 36% year-over-year. As you are aware we completed the acquisition of majority interest in Polaris Consulting and Services on March 3, 2016.
In the fourth quarter Polaris contributed approximately $19.4 million of revenue which is above our prior expectations of approximately $17 million, primarily due to lower anticipated India to U.S. GAAP adjustments. Excluding the partial fourth quarter revenue contribution from Polaris, revenue increased 1.2% sequentially and 21% year-over-year on a reported basis and was up 2.2% sequentially and 22% year-over-year on a constant currency basis. Our organic sequential revenue growth was in line with our prior guidance range and industry ...Full story available on Benzinga.com|
|05/16/16 05:58 AM||Virtusa beats by $0.11, beats on revenue - |
|03/09/16 03:17 PM||VIRTUSA CORP Files SEC form 8-K, Completion of Acquisition or Disposition of Assets, Change in Directors or Principal - |
|03/05/16 11:21 PM||Virtusa completes acquisition of majority interest in Polaris - Virtusa Corporation (NASDAQ GS: VRTU) announced that its India subsidiary, Virtusa Consulting Services Private Limited (“Virtusa India”), has acquired all of the outstanding shares of Polaris Consulting & Services, Ltd. (“Polaris”) (BSE: POLARIS ...|
|03/03/16 06:15 AM||Virtusa Completes Acquisition of Majority Interest in Polaris Consulting & Services, Ltd. - [Business Wire] - WESTBOROUGH, Mass.--(BUSINESSWIRE)-- Virtusa Corporation (NASDAQ GS:VRTU) today announced that its India subsidiary, Virtusa Consulting Services Private Limited (“Virtusa India”), has acquired all of the outstanding shares of Polaris Consulting & Services, Ltd. (“Polaris”) (BSE: POLARIS NSE: POLARIS MSEI: POLARIS) held by Mr. Arun Jain, founder and chairman of Polaris, Orbitech Private Limited, and certain other minority stockholders, representing an aggregate of approximately 51.7% (1) of the fully diluted outstanding shares of Polaris for an average of $3.12 per share (INR 213.883 per share) (2), for an aggregate purchase consideration of $165.89 million (INR 11,364 million) (2). Jitin Goyal will remain CEO of Polaris, and was appointed President, BFS, to lead Virtusa’s and Polaris’ business operations serving the banking and financial services verticals.|
|03/02/16 03:09 PM||VIRTUSA CORP Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligatio - |
|02/19/16 06:10 AM||Virtusa upgraded by Sun Trust Rbsn Humphrey - |
|02/16/16 09:00 AM||Virtusa Recognized for Healthcare Payer Big Data and Analytics IT Services in Everest Group’s PEAK Matrix - [Business Wire] - Virtusa Corporation , a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry solutions to transform the customer experience, today announced it has been named an Aspirant on Everest Group’s recent report: Healthcare Payer Big Data and Analytics IT Services – Service Provider Landscape with PEAK Matrix™ Assessment 2015.|
|02/10/16 01:55 PM||(VRTU) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS - Virtusa (NASDAQ:VRTU) last released its quarterly earnings results on Monday ... Equities analysts predict that Virtusa Co. will post $1.05 earnings per share for the current fiscal year.|
|02/10/16 01:55 PM||Virtusa Corporation (NASDAQ:VRTU) Buy Rating Reaffirmed by Needham; The Target Price Given is $60.00 - Virtusa Corporation (NASDAQ:VRTU) has declined 26.44% since July 6 ... Mitchell Capital Management Co holds 5.6% of its portfolio in Virtusa Corporation for 312,708 shares. Pembroke Management Ltd owns 1.23 million shares or 4.67% of their US portfolio.|