Virtusa revenues up, new clients walk in

Westborough, MA – Virtusa Corporation this week reported increased revenues for the second quarter of 2007-08 as new clients walked in.

For the second quarter of the period under review, Virtusa’s revenue increased 33.8% year-over-year and 7.5% sequentially, to $40.3 million. It reported second quarter income from operations of $4.7 million, or 11.7% of revenue, up 27.8% against $3.7 million for the second quarter of fiscal 2007, according to a company statement.

Kris Canekeratne, Virtusa’s Chairman and CEO said the company added five new clients and expanded its existing client relationships in the quarter. “We believe that this is indicative of the increased value that we provide through our broad range of IT services, transformational platforming approach and optimal global delivery model, where we provide 20% or less of our services onsite and 80% or more offshore,” the Sri Lankan-born entrepreneur said.

The company ended the second quarter of fiscal 2008 with no long-term debt.

“Our second quarter performance demonstrated our ability to leverage operating expenses while growing revenue in-line with our guidance,” said Tom Holler, Chief Financial Officer. “Although our second quarter cost management initiatives enabled us to exceed profit guidance, we remain committed to our strategy of investing in business development and people practices to support long-term revenue growth.”