Second Quarter Fiscal 2015 Consolidated Financial Results
Revenue for the second quarter of fiscal 2015 was $117.7 million, an increase of 5% sequentially and 25% year-over-year in reported currency. On a constant currency basis,(1) second quarter revenue increased 5% sequentially and 23% year-over-year.
Income from operations increased to $12.2 million for the second quarter of fiscal 2015, compared to $11.2 million for the first quarter of fiscal 2015, and $9.8 million for the second quarter of fiscal 2014.
Net income for the second quarter of fiscal 2015 increased to $10.1 million, or $0.34 per diluted share, compared to $9.0 million, or $0.31 per diluted share, for the first quarter of fiscal 2015, and compared to $7.5 million, or $0.28 per diluted share, for the second quarter of fiscal 2014.
The Company ended the second quarter of fiscal 2015 with $215.2 million of cash, cash equivalents, and short-term and long-term investments.(2) Cash flow from operations for the second quarter of fiscal 2015 was $21.7 million.
Kris Canekeratne, Virtusa's Chairman and CEO, stated, "This was another strong quarter for Virtusa. We are realizing the benefits of the investments we have been making in business development, our service offerings and delivery excellence. Our Millennial and transformational solutions are driving our growth and increasingly being embraced by our clients as they look to Virtusa as a partner that can meet the needs of their larger and lengthier programs.”
Ranjan Kalia, Chief Financial Officer, said, “During our second quarter, broad-based demand across our verticals, geographies and client portfolio enabled us to record revenue at the high end of our guidance. We are also pleased with our ability to achieve double digit sequential and year-over-year EPS growth.”
Financial Outlook
Virtusa management provided the following current financial guidance:
Third quarter fiscal year 2015 revenue is expected to be in the range of $121.8 to $123.8 million, with diluted EPS of $0.39 to $0.41.
Fiscal year 2015 revenue is expected to be in the range of $477.0 to $483.0 million, with diluted EPS of $1.47 to $1.53.
The Company’s third quarter and full fiscal year 2015 diluted EPS estimates assume an average share count of approximately 29.6 million and 29.5 million respectively, (assuming no further exercises of stock-based awards) and assume a stock price of $36.62, which was derived from the average closing price of the Company’s stock over the five trading days ended on October 29, 2014.
Deviations from this stock price may cause actual EPS to vary based on share dilution from Virtusa’s stock options and stock appreciation rights.