The Growth Keeps Coming For Westborough's Virtusa

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Westborough-based IT consulting, technology and outsourcing provider Virtusa Corp. is having its strongest fiscal year since it was founded nearly 17 years ago.

Coming off a record fiscal year 2012, Virtusa is topping itself again in fiscal 2013, with revenue and profits up double digits through three quarters, the company announced Wednesday afternoon.

Big Gains

Third-quarter revenue was $86.5 million, up 20 percent from from $72.2 million in the third quarter of last year. Profits for the quarter grew 32 percent to $7.4 million.

For the first nine months of the year, profits are up 36 percent to $19.3 million on sales of $243.2 million, up from $203.5 million.

Kris Canekeratne, Virtusa's chairman and CEO, said in a statement that the growth has been driven by multiple business areas.

"This was a strong quarter for Virtusa driven by broad-based revenue growth across all of our industries and geographies," Canekeratne said.

Industries And Geographies Wide Ranging

Virtusa builds consumer-facing IT platforms for the financial, telecommunications, health care, software and media sectors, among others.

Banking and telecom are some of its biggest business lines. Virtusa, which has been publicly traded since 1997, lists JP Morgan Chase Bank – one of the biggest banks in the country – as its largest customer in fiscal year 2012. The and said its client roster includes seven of the top 10 U.S. Banks among its customers and two of the largest card and payment providers. The company also lists Aetna Life Insurance Co., Iron Mountain Information Management, Thompson Reuters.

Virtusa is a global a company as any. Its offices and facilities span the globe from Amsterdam to Germany to India, Sri Lanka and Singapore.

Its global workforce has grown quickly. Virtusa has more than 7,000 employees, many of them overseas.

Digitally Savvy Consumers Drive Business

Virtusa's sales and profits have climbed for years. And now in its seventh year as a Nasdaq-traded company, both are on track to double this year, when compared to its 2007 numbers.

The company experienced one dip in revenue – in fiscal year 2010 – but hit new highs the following year. With one quarter remaining, it's looking likely the company will set a new record in 2013.

Virtusa helps large enterprises align their products and services with digitally savvy consumers. Virtusa has been a part of a number of major banks' transitions to online banking systems, and more recently, mobile banking. It has built platforms to help hospitals track patients and to help insurance companies handle claims processing.

Canekeratne told analysts and others on the earnings call this week that major enterprises are devoting more of their IT budgets to customer-facing systems, because customers have come to expect those types of systems, and because the help companies generate revenue.

Canekeratne has a term for offering digitally-savvy consumers a way to access product and services on mobile devices and tablets – "millennial enablement."

He thinks the trend can only continue. The rest of this decade, Canekeratne said, will be characterized by "the largest application modernization initiative in the history of enterprise IT."

Correction: The original version of this story incorrectly stated Virtusa's third-quarter revenue and misstated the day of the week the company released its earnings.

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