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IGate profit up, staffing revenue down

April 18 2008

First-quarter net income rose 71.2% at information technology services and staffing firm iGate Corp. (NASD: IGTE), the company reported today. However, revenue in its professional services division, which includes staffing firms iGate Mastech and RPOworldwide, fell 7.8%.

Pittsburgh-based iGate said first-quarter revenue in its professional services division was $24.9 million, down from $27.0 million in the same period last year. Gross margin slipped to 20% from 23%. The company said it's looking more like it will spin off the division rather than sell it to another firm. In February, iGate announced plans to divest its professional services segment.

Overall first-quarter revenue rose 6.5% to $79.8 million from $74.9 million in the same period in the previous year.

First-quarter net income was $7.4 million, up from $4.3 million in the first quarter of 2007. Companywide gross margin improved to 31.7% from 28.6%.

IGate Corp. (NASD: IGTE)
For the first quarter ended March 31, 2008, compared with the same period in 2007.
Revenue: $79.8 million, +6.5%
Net income: $7.4 million, +71.2%

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