Key Developments For Virtusa Corporation
Virtusa Corporation (VRTU.O) (Consolidated Issue listed on NASDAQ Global Market)
Virtusa Corporation Announces Acquisition Of InSource, LLC; Issues Q3 2010 Guidance; EPS Guidance Below Analysts' Estimates; Issues FY 2010 Guidance In Line With Analysts' Estimates
Virtusa Corporation announced the acquisition of InSource, LLC, a privately-held technology consulting firm with domain expertise in the insurance and healthcare industries. Under the terms of the agreement, InSource will become a wholly owned subsidiary of Virtusa. InSource employs approximately 50 experienced practitioners specializing in program management and IT strategy. The acquisition is expected to immediately expand Virtusa`s service offerings in the insurance and healthcare industries. Under the terms of the agreement, Virtusa acquired InSource for $7.3 million in cash, subject to post closing adjustments, including up to an additional $0.5 million in earn-out consideration upon InSource`s achievement of certain revenue and profit milestones for the three and twelve month periods ending December 31, 2009. The Company also announced that for third quarter 2010 it expects revenue to be in the range of $39.7 to $41.4 million, with diluted EPS of $0.09 to $0.12. For fiscal 2010 it expects revenue to be in the range of $157.0 to $162.0 million, with diluted EPS of $0.46 to $0.53. According to Reuters Estimates, analysts are expecting the Company to report revenue of $39.8 million and EPS of $0.14 for third quarter 2010; revenue of $157.1 million and EPS of $0.51 for fiscal 2010.
Virtusa Corporation Announces Share Repurchase Plan
Virtusa Corporation announced that its Board of Directors has authorized a share repurchase program of up to $15 million of the Company's common stock over the next 12 months. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act of 1934. While the Board of Directors has approved the share purchasing guidelines, the timing of repurchases and the exact number of shares of common stock to be purchased will be determined by the Company's management, at its discretion, and will depend upon market conditions and other factors.
Virtusa Corporation Issues Q2 2010 Outlook In-Line with Analysts' Estimates; Reiterates FY 2010 Revenue Outlook; Raises FY 2010 EPS Outlook
Virtusa Corporation announced that for the second quarter of 2010, it expects revenue to be in the range of $36.4 million to $37.8 million, with diluted EPS of $0.08 to $0.11. For fiscal 2010, the Company continues to expect revenue to be in the range of $154 million to $162 million. The Company raised diluted EPS outlook to a range of $0.46 to $0.56. According to Reuters Estimates, analysts on an average were expecting the Company to report revenue of $36.6 million and earnings per share (EPS) of $0.08 for the second quarter of 2010; revenue of $154 million and EPS of $0.47 for fiscal 2010.
Virtusa Corporation Issues FY, Q1 2010 Guidance Below Analysts' Estimates
Virtusa Corporation announced that for first quarter of 2010, it expects revenue to be in the range of $36.5-$37.5 million, with diluted earnings per share (EPS) of $0.05 to $0.08. For fiscal 2010, it expects revenue to be in the range of $154.0-$162.0 million, with diluted EPS of $0.43-$0.53. According to Reuters Estimates, analysts were expecting the Company to report revenues of $41.3 million and EPS of $0.09 for first quarter of 2010; revenues of $175.9 million and EPS of $0.57 for fiscal 2010.
Virtusa Corporation Issues Q4 2009 Mixed Guidance; Narrows FY 2009 Revenue Guidance; Raises FY 2009 EPS Guidance
Virtusa Corporation announced that for fourth quarter of 2009, it expects revenue to be in the range of $40.5-$42.0 million, with diluted EPS of $0.10 to $0.15. For fiscal 2009, it expects revenue to be in the range of $172.0 to $173.5 million, with diluted EPS of $0.46 to $0.51. The Company's fourth quarter and fiscal year 2009 diluted EPS estimates assume an average share count of approximately 23.4 million (assuming no further exercises of stock-based awards and no impact from the Share Repurchase Program) and assumes a stock price of $6.05, which was derived from the average closing price of our stock over the five trading days ended on January 23, 2009. Deviations from this stock price will cause actual EPS to vary based on share dilution from Virtusa's stock options and stock appreciation rights. According to Reuters Estimates, analysts were expecting the Company to report revenues of $42.6 million and EPS of $0.06 for fourth quarter of 2009; revenues of $172.41 million and EPS of $0.23 for fiscal 2009.
