iGate may reorganize/quit certain service lines & verticals
IT services firm iGate may reorganize or quit certain service lines and verticals, including certain geographies; the Nasdaq-listed firm's newly appointed chief executive Ashok Vemuri hinted.
Giving an early glimpse of his plans for the firm's next three-six months, vemuri said that there are certain businesses that might not be the right ones for the company to operate.
Speaking on the topic, Vemuri said, "There are certain service lines and verticals that we believe are maybe not the right ones for us to operate, including certain geographies. So we're taking a hard look at some of the businesses we're in."
On Thursday, the Fremont, Calif.-based company reported stronger-than-expected quarterly results. The firm posted a net profit of $31.9 million for the July to September quarter, as against $28.3 million in the corresponding period of last year.
Revenue jumped 8.2 per cent to $293.4 million, while gross margin increased from 39.8 per cent to 41.4 per cent. Analysts, on average, had projected revenue at $289.29 million for the company's September quarter.
Vemuri also announced the company's plans to set up two new delivery centers in North America - Halifax in Canada and Sterling in Virginia (U. S.) to serve key clients in the region.