IGate stock jumps as profit tops expectations

FREMONT, Calif. (AP) -- IGate Corp.'s fourth-quarter profit more than doubled as the outsourcing company added new customers and benefited from a lower tax rate and improved profit margins. The profit beat market expectations, and shares jumped in trading Thursday on the news.

The company, based in Fremont, Calif., provides technology and business process outsourcing for customers around the globe.

IGate reported that its net income of $24.6 million, or 31 cents per share, for the period that ended Dec. 31. That is up from $8.2 million, or 11 cents per share, a year earlier.

After adjusting for acquisition, reorganization and other one-time items, it earned 47 cents per share, up from 27 cents per share a year ago.

IGate's revenue edged up to $271.6 million from $267.7 million.

Analysts polled by FactSet were expecting the company to earn 39 cents per share on revenue of $272.1 million.

The company has made a number of changes in the past year, including acquiring Patni Computer Systems Ltd. and reorganizing its overseas subsidiaries.

IGate said it added 14 new customers during the fourth quarter. Its operating margins improved by 11 percent. And its income tax expenses fell to $6.6 million from $16.9 million.

Shares of the company jumped $1.15, more than 7 percent, to $17.33 by midday. Its stock is nearing the high end of its 52-week trading range of $14.67 to $19.97.