Virtusa's $20M tax bill results in $8M quarterly loss
Town of Westborough
Virtusa's headquarters at 2000 West Park Drive in Westborough
Despite revenues increasing by 6 percent, Westborough business consulting and information-technology firm Virtusa said it lost almost $8 million in its third quarter largely due to the impact of tax reform.
The company reported net loss of just over $7.9 million in the quarter ending Dec. 31, compared to a net income of $5.5 million for the same period last year.
Net loss available to Virtusa common stockholders was lower, at $11.1 million, compared to a net income of $4.4 million in last year’s third quarter.
The company reported a tax expense of $19.8 million for the quarter as a result of the Tax Cuts and Jobs Act, mostly related to bringing foreign earnings back to the U.S at a one-time maximum rate of 15.5 percent.
Virtusa’s third-quarter revenue of $263.8 million, however, increased by 6.3 percent from last year’s period. For the year, revenue is $739 million, up from the $632 million through the first nine months of last fiscal year.
The company announced the successful delisting of its Indian subsidiary Polaris, including a delisting settlement to Polaris’ stockholders of $145 million.
The move gives the company a 93-percent ownership stake in the company, which is up from 74 percent.
Virtusa and a syndicated bank group led by JP Morgan Chase Bank, Merrill Lynch and others agreed to a $450-million credit facility to support that transaction.
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