Virtusa makes a buy, reports revenue jump
Business consulting and technology outsourcing company Virtusa of Westborough saw a double-digit increase in revenue in its first quarter of the year and raised its revenue forecast through the end of the year, also announcing the acquisition of an Atlanta-based technology consultancy.
Virtusa said revenue increased 20 percent year-over-year to $134.8 million in the first quarter of its 2016 fiscal year. Net income was $10.1 million, or 34 cents per diluted share, down from $11.6 million, or 39 cents, from the fourth quarter of fiscal 2015, but a jump of $9 million (31 cents) over the first quarter of fiscal 2015.
And Virtusa expects the good times to continue, increasing its revenue forecast for the year to between $582 million and $594 million.
“We are pleased with our first-quarter results, and believe we are well positioned to achieve our fiscal year 2016 outlook,” CFO Ranjan Kalia said in a statement.
Virtusa also expanded its reach in business process management with the acquisition of Agora Group, Inc. on Tuesday in an all-cash deal worth $7.5 million. The purchase of the 60-person company also came with an agreement to issue up to $2.89 million in stock awards from Virtusa’s stock option and incentive plan to some Agora employees, Virtusa’s statement said.
Agora, established in 2000, is an IT consulting organization headquartered in Atlanta. Its core services concentrate on technology strategy, business process management and customer relationship management.
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