August 10, 2017

Virtusa revenue up but income falls

Town of Westborough
Virtusa's headquarters at 2000 West Park Drive in Westborough

Virtusa Corp., a Westborough business consulting and information technology company, saw revenue jump by 11 percent in the quarter ending June 30, but income fell by 40 percent.

Virtusa announced its first-quarter earnings Tuesday, reporting that revenue rose to $227 million. Income was $6.1 million, a drop from $10.2 million in the previous quarter.

The company said it expects a continued slight increase in revenue, in a range of $237 to $242 million in the current quarter. Full-year revenue is projected to be $940 million to $960 million. That would follow a 43-percent increase last fiscal year to $859 million in revenue.

In May, a newly formed New York investment firm invested $108 million in Virtusa. That firm, Orogen, was formed in May 2016 by Vikram Pandit, a former CEO of Citigroup with 35 years of experience in financial services.

That infusion of cash helped Virtusa repay a loan about a year after it completed a $166-million stock purchase of India-based IT firm Polaris Consulting & Services.

Virtusa has its 22,000-square-foot headquarters in Westborough but has a far larger campus of 325,000 square feet in Hyderabad, India.

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