iGATE Reports Steady First Quarter; Profits Up 44%

iGATE Reports Steady First Quarter; Profits Up 44%

Successful Inaugural iGATE CEO Cup Golf Tournament

FREMONT, Calif., April 11, 2013 (GLOBE NEWSWIRE) -- iGATE Corporation
(Nasdaq:IGTE), the first Business Outcomes driven integrated Technology and
Operations (iTOPS) solutions provider, today announced its financial results
for the first quarter ended March 31, 2013.

First Quarter Highlights

  *Revenues for first quarter 2013 increased by 4% to $274.9 million from
    $263.3 million in the first quarter 2012.
  *Net Income attributable to iGATE Corporation for first quarter 2013
    increased by 44% to $34.8 million from $24.1 million in the first quarter
    2012.
  *Gross margin was 38.1 % for the first quarter 2013 compared to 40.2 % in
    the corresponding quarter in 2012.
  *Diluted earnings per share of $0.34 GAAP; $0.51 non-GAAP as compared to
    $0.22 and $0.38 for the same period in 2012.
  *Added ten new customers during the quarter; six of which are Fortune 1000
    companies.
  *The company ended the first quarter 2013 with 28,204 employees
  *iGATE launched its inaugural iGATE CEO Golf Cup on January 12-13, 2013 in
    association with Forbes and the NYSE

Phaneesh Murthy, CEO, iGATE said, "I am pleased to see a steady start to the
year. We have made significant investments in sales, marketing and branding in
our markets. The pace at which we are adding quality new clients is
satisfying."

Sujit Sircar, CFO, iGATE said, "I am happy to see good earnings growth during
the quarter. Our margins were a bit lower as a result of the visa related
costs that we partially absorbed in the quarter."

First Quarter Operating Results

Results for the first quarter on a GAAP and non-GAAP basis are provided in the
table below.


                    Three months Three months Year over year increase/
                     ended        ended        (decrease)
                    3/31/2013    3/31/2012    
Net revenue          274.9       263.3       4%
($Millions)
Operating margin     52.6        48.1        9%
($Millions)
GAAP net income      34.8        24.1        44%
($Millions)
GAAP diluted EPS ($) 0.34        0.22        55%
Adjusted EBITDA      65.5        68.3        -4%
($Millions)
Non-GAAP net income  39.9        29.0        38%
($Millions)
Non-GAAP diluted EPS 0.51        0.38        34%
($)

New customers and key project wins in the quarter

  *A leading Insurance carrier in the U.S listed in the Fortune 500 category
    chose iGATE as a third party administrator (TPA) of its claims operations.
    As part of this integrated technology and operations (iTOPS) deal, iGATE
    will be responsible for the customer's entire claims operations, IT
    applications and infrastructure and provide TPA services on its platform,
    where the client will pay on a per-policy-per-month model.
    
  *iGATE has also been engaged by a global financial services provider in
    Europe to assist it in reducing its operating costs. As part of the
    engagement, iGATE will focus on simplifying this company's IT environment
    by consolidating multiple platforms at a global level and implementing
    newer technologies designed to reduce IT investments by the client and
    increase operational efficiency.
    
  *A renowned luxury apparel and footwear company in North America that
    designs and sells upscale footwear and accessories internationally engaged
    iGATE to optimize the company's worldwide IT landscape. As part of the
    engagement, iGATE will provide integrated IT and business aligned services
    using proprietary platforms and cloud based solutions designed to make the
    IT environment scalable and IT costs variable.
    
  *iGATE has also been selected by a leading food wholesaler in Europe to
    assist the company in achieving operational efficiency after a recent
    acquisition of a retailer. As part of this engagement, iGATE will focus on
    enterprise systems consolidation that includes separation and migration of
    several disparate systems into a unified system.
    
  *A Fortune 500 company in the U.S. providing engineering and construction
    services for commercial and government clients globally, engaged iGATE to
    improve the company's operational efficiency and increase profitability by
    consolidation of IT applications. As part of the engagement, iGATE will
    integrate IT services and facilitate upgrading of IT platforms on a global
    delivery model.

Conference Call and Webcast

The Company has scheduled its Earnings Conference Call on Thursday, April 11,
2013 to discuss the results of its first quarter ended March 31, 2013. Senior
management of the Company will discuss the Company's financial performance for
the quarter and answer participants' questions during the call.

Time        : 08.00-9.00 am Eastern Time / 05.00-06.00 am Pacific Time
Toll Free   : 877-407-8037
Toll       : 201-689-8037
Access Code : 410960

The call will be webcast live on iGATE's website (www.igate.com) in the
Investor Relations page under the section titled "Events". Participants are
requested to log in 10 minutes prior to the start of the webcast. The
on-demand version of the webcast will be available on the iGATE website
shortly after the call.

Investors, potential investors, shareholders and bond holders can access the
telephonic replay by dialing 877-660-6853 (toll free) or 201-612-7415 (toll)
and entering conference number 410960. The telephonic replay will be available
until April 18, 2013.

About iGATE

iGATE Corporation is the first integrated technology and operations (iTOPS)
company providing full-spectrum consulting, technology and business process
outsourcing, and product and engineering solutions on a Business
Outcomes-based model. Armed with over three decades of IT Services experience
and powered by the iTOPS platform, iGATE's multi-location global organization
has a talent pool of more than 28,000 employees and consistently delivers
effective solutions to over 300 companies including Fortune 1000 clients
spanning verticals such as: banking and financial services; insurance and
healthcare; life sciences; manufacturing, retail, distribution and logistics;
media, entertainment, leisure and travel; energy and utilities; public sector;
and independent software vendors. Please visit www.igate.com for more
information.

iGATE Corporation is listed on NASDAQ under the symbol "IGTE."

The iGATE Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150

Use of non-GAAP Financial Measures

This press release contains non-GAAP financial measures as defined by the
Securities and Exchange Commission. These non-GAAP measures are not in
accordance with, or an alternative for measures prepared in accordance with,
generally accepted accounting principles in the United States and may be
different from non-GAAP measures used by other companies. In addition, these
non-GAAP measures are not based on any comprehensive set of accounting rules
or principles. Reconciliations of these non-GAAP measures to their comparable
GAAP measures are included in the attached financial tables.

iGATE believes that non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with iGATE's results of operations as
determined in accordance with GAAP and that these measures should only be used
to evaluate iGATE's results of operations in conjunction with the
corresponding GAAP measures. These non-GAAP measures should be considered
supplemental in nature and should not be considered in isolation or be
construed as being more important than comparable GAAP measures.

iGATE believes that providing Adjusted EBITDA and non-GAAP net income and
non-GAAP diluted earnings per share in addition to the related GAAP measures
provides investors with greater transparency to the information used by
iGATE's management in its financial and operational decision-making. These
non-GAAP measures are also used by management in connection with iGATE's
performance compensation programs.

More specifically, the non-GAAP financial measures contained herein exclude
the following items:

  *Amortization of intangible assets: Intangible assets comprise value of
    customer relationships from the recent acquisition of iGATE Computer
    Systems Limited (formerly known as Patni Computer Systems Limited and
    referred to herein as "iGATE Computer") and the previous delisting of
    iGATE Computer. iGATE incurs charges relating to the amortization of these
    intangibles. These charges are included in iGATE's GAAP presentation of
    earnings from operations, operating margin, net income and diluted
    earnings per share. iGATE excludes these charges for purposes of
    calculating these non-GAAP measures.
    
  *Stock-based compensation: Although stock-based compensation is an
    important component of compensation of iGATE's employees and executives,
    determining the fair value of the stock-based instruments involves a high
    degree of judgment and estimation and the expense recorded may not reflect
    the actual value realized upon the future exercise or termination of the
    related stock-based awards. Furthermore, unlike cash compensation, the
    value of stock-based compensation is determined using a complex formula
    that incorporates factors, such as market volatility, that are beyond the
    Company's control. Management believes it is useful to exclude stock-based
    compensation in order to better understand the long-term performance of
    iGATE's core business.
    
  *Foreign exchange (gain)/loss: In March 2012, the Company entered into a
    forward foreign exchange contract to mitigate the risk of changes in
    foreign exchange rates on payments related to the delisting of iGATE
    Computer. During the year 2012, the Company recognized foreign currency
    loss on re-measurement of escrow account balance and foreign exchange gain
    on re-measurement of redeemable non-controlling interest liability. iGATE
    believes that eliminating the non-capitalized items for purposes of
    calculating these non-GAAP measures facilitates a more meaningful
    evaluation of iGATE's current performance and comparisons to its past
    performance.
    
  *Delisting expenses: iGATE voluntarily delisted the equity shares of its
    majority owned subsidiary, iGATE Computer, from the National Stock
    Exchange of India Limited and the Bombay Stock Exchange Limited and the
    American Depository Shares from the New York Stock Exchange. Delisting is
    an infrequent activity and expenses incurred in connection with the
    delisting are inconsistent in amount and are significantly impacted by the
    timing and nature of the delisting. iGATE believes that eliminating these
    expenses for purposes of calculating these non-GAAP measures facilitates a
    more meaningful evaluation of iGATE's current operating performance and
    comparisons to its past operating performance.
    
  *Merger and reorganization expenses: iGATE is merging and reorganizing its
    overseas subsidiaries and branches with a view to simplifying the
    corporate structure and has incurred legal and professional expenses in
    this connection. Merger and reorganization is an infrequent activity and
    expenses incurred in connection therein are inconsistent in amount and
    significantly impacted by the timing and nature of the reorganization.
    iGATE believes that eliminating these expenses for purposes of calculating
    these non-GAAP measures facilitates a more meaningful evaluation of
    iGATE's current operating performance and comparisons to its past
    operating performance.
    
  *Preferred dividend and accretion to preferred stock: The Company has
    issued 8.00% Series B Preferred Stock. The Company also incurred issuance
    costs which have been netted against the proceeds received from the
    issuance of Series B Preferred Stock. The Series B Preferred Stock is
    being accreted over a period of six years. The Company believes that
    eliminating these expenses for purposes of calculating these non-GAAP
    measures facilitates a more meaningful evaluation of iGATE's current
    operating performance and comparisons to its past operating performance.

From time to time in the future, there may be other items that iGATE may
exclude in presenting its financial results.

Forward-Looking Statements

Statements contained in this press release regarding the business outlook, the
demand for the products and services, and all other statements in this release
other than recitation of historical facts are forward-looking statements.
Words such as "expect", "potential", "believes", "anticipates", "plans",
"intends" and other similar expressions are intended to identify such
forward-looking statements. Forward-looking statements in the press release
include, without limitation, forecasts of market growth, future revenues,
future expectations concerning growth of business, cost competitiveness and
expansion of global reach following the acquisition, and other matters that
involve known and unknown risks, uncertainties and other factors that may
cause results, levels of activity, performance or achievements to differ
materially from results expressed or implied by this press release. Such risk
factors include, among others: difficulties encountered in integrating
business; whether certain market segments grow as anticipated; the competitive
environment in the information technology services industry and competitive
responses to the Company's acquisition of iGATE Computer; and whether iGATE
can successfully provide services/products and the degree to which these gain
market acceptance. Furthermore, in connection with the iGATE Computer
acquisition, the Company has borrowed significant amounts, including through
the issuance of high yield notes, and will need to use a significant portion
of its cash flows to service such indebtedness, as a result of which the
Company might not have sufficient funds to operate its businesses in the
manner it intends or has operated in the past. Additional risks relating to
the Company are set forth in the Company's Annual Report on Form 10-K for the
fiscal year ended December31, 2012, as well as the Company's other reports
filed with the Securities and Exchange Commission. Actual results may differ
materially from those contained in the forward-looking statements in this
press release. Any forward-looking statements are based on information
currently available to the Company and it assumes no obligation to update
these statements as circumstances change. This document does not constitute an
offer to purchase or to sell securities in any jurisdiction.

iGATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)

                                                 March 31,     December 31,
                                                 2013          2012
                                                 (unaudited) (audited)
                                                              
ASSETS                                                         
Current assets:                                                
Cash and cash equivalents                         $94,846     $95,155
Restricted cash                                   20           3,072
Short-term investments                            500,467      510,816
Accounts receivable, net                          148,600      162,335
Unbilled revenues                                 93,948       72,901
Prepaid expenses and other current assets         39,264       31,710
Prepaid income taxes                              8,145        8,541
Deferred tax assets                               15,081       14,655
Foreign exchange derivative contracts             4,176        782
Total current assets                              $904,547    $899,967
                                                              
Deposits and other assets                         23,290       25,372
Prepaid income taxes                              32,267       28,351
Property and equipment, net                       170,074      167,252
Leasehold land                                    87,934       86,933
Deferred tax assets                               27,808       30,635
Goodwill                                          499,631      493,141
Intangible assets, net                            143,093      144,428
Totalassets                                      $1,888,644  $1,876,079
                                                              
LIABILITIES, REDEEMABLE NON CONTROLLING INTEREST,              
PREFERRED STOCK AND EQUITY
                                                              
Current liabilities:                                           
Accounts payable                                  $12,425     $7,799
Line of credit                                    47,000       77,000
Term loans                                        70,000       35,000
Accrued payroll and related costs                 45,566       54,802
Other accrued liabilities                         89,174       79,008
Accrued income taxes                              6,971        9,134
Foreign exchange derivative contracts             689          7,516
Deferred revenue                                  13,383       17,890
Total current liabilities                         $285,208    $288,149
                                                              
Other long-term liabilities                       2,838        3,265
Senior notes                                      770,000      770,000
Term Loans                                        228,500      263,500
Accrued income taxes                              17,273       17,272
Deferred tax liabilities                          54,656       55,494
Total liabilities                                $1,358,475  $1,397,680
                                                              
Redeemable non controlling interest               $27,320     $32,422
                                                              
Series B Preferred stock                          $386,089    $378,474
                                                              
Shareholders' equity:                                          
Common Stock, par value $0.01 per share           588          585
Common stock in treasury, at cost                 (14,714)     (14,714)
Additional paid-in capital                        189,424      185,340
Retained earnings                                 198,020      170,875
Accumulated other comprehensive loss              (256,558)    (274,583)
Totalequity                                      116,760      67,503
Total liabilities, redeemable non controlling     $1,888,644  $1,876,079
interest, preferred stock and equity
                                                              

iGATE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands)
(unaudited)

                                                        Three Months ended
                                                        March 31,
                                                        2013       2012
                                                                  
                                                                  
Revenues                                                 $274,918 $263,265
                                                                  
Cost of revenues (exclusive of depreciation and          170,239   157,429
amortization)
                                                                  
Gross margin                                             104,679   105,836
                                                                  
Selling, general and administrative expense              42,792    42,421
                                                                  
Depreciation and amortization                            9,271     15,285
                                                                  
Income from operations                                  52,616    48,130
                                                                  
Other income (loss), net                                 (2,896)   (8,723)
                                                                  
Income before income taxes                               49,720    39,407
                                                                  
Income tax expense                                      14,960    10,863
                                                                  
Net income                                               34,760    28,544
                                                                  
Noncontrolling interest                                  --       4,476
                                                                  
Net income attributable to iGATE Corporation             34,760    24,068
                                                                  
Accretion to Preferred Stock                             115       94
Preferred dividend                                       7,500     6,999
Net income attributable to iGATE common shareholders     $27,145  $16,975
                                                                  

iGATE CORPORATION
Earnings Per Share
(Amounts in thousands, except per share data)
(unaudited)
                                          Three Months Ended March 31,
PARTICULARS                                2013              2012
                                                           
Net income attributable to                 $27,145         $16,975
iGATE common shareholders
Add: Dividends on Series B                 7,500            6,999
Preferred Stock
                                          34,645           23,974
                                                           
Less: Dividends paid on                                     
Series B Preferred Stock       [A]          7,500            6,999
Undistributed Income                      $27,145         $16,975
                                                           
Allocation of Undistributed                                 
Income :
Common stock                  [B]          20,338           12,917
Unvested restricted stock     [C]          8                43
Series B Preferred Stock      [D]          6,799            4,015
                                          $27,145         $16,975
                                                           
Shares outstanding for
allocation of undistributed                                 
income:
Common stock                               57,270           56,924
Unvested restricted stock                 23               188
Series B Preferred Stock                   19,147           17,692
                                          76,440           74,804
                                                           
Weighted average shares                                     
outstanding:
Common stock                   [E]          57,262           56,813
Unvested restricted stock     [F]          23               193
Participating preferred stock  [G]          19,147           17,692
                                          76,432            74,698
                                                           
Weighted average common stock              57,262           56,813
outstanding
Dilutive effect of stock
options and restricted shares              1,741            1,671
outstanding
Dilutive weighted average      [H]          59,003           58,484
shares outstanding
                                                           
Distributed earnings per                                    
share:
Participating preferred stock  [I=A/G]      $0.39           $0.40
                                                           
Undistributed earnings per                                  
share:
Common stock                   [J=B/E]      $0.36           $0.23
Unvested restricted stock      [K=C/F]      $0.36           $0.23
Participating preferred stock  [L=D/G]      $0.36           $0.23
                                                           
                                                           
Basic earnings per share from                               
operations:
Common Stock                   [J]          $0.36           $0.23
Unvested restricted stock      [K]          $0.36           $0.23
Participating preferred stock  [I+L]        $0.75           $0.63
                                                           
Diluted earnings per share     [[B+C]/H]    $0.34           $0.22
from operations
                                                           
The number of outstanding participative convertible preferred stock for which
the earnings per share exceeded the earnings per share of common stock
aggregated to 19.1 million and 17.7 million for the three months endedMarch
31,2013 and 2012 respectively.These shares were excluded from the computation
of diluted earnings per share as they were anti-dilutive.


iGATE CORPORATION
Reconciliation of Net Income, Net of Tax, to Adjusted EBITDA
(Amounts in thousands)
(unaudited)
                                            Three Months ended
                                            March 31,
                                            2013             2012
                                                            
Net income                                   $34,760        $28,544
                                                            
Adjustments                                                  
                                                            
Depreciation and amortization                9,271           15,285
Interest expenses                            22,657          19,123
Income taxexpense                          14,960          10,863
Other income, net                            (17,280)        (7,564)
Foreign exchange loss/(gain)                 (2,481)         (2,836)
Stock Based Compensation                     3,125           2,812
Delisting expenses                           93              2,115
Merger and reorganizationexpenses           419             --
Adjusted EBITDA (a non-GAAP measure)         $65,524        $68,342
                                                            
                                                            
The Company presents the non-GAAP financial measures EBITDA and adjusted
EBITDA because management uses these measures to monitor and evaluate the
performance of the business and believes that the presentation of these
measures will enhanceinvestors' ability to analyze trends in the business and
evaluate the Company's underlying performance relative to other companies in
the industry.


iGATE CORPORATION
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(Amounts in thousands, except per share data)
(unaudited)
                                                                   
                                                          Three Months ended
                                                          March 31,
                                                          2013      2012
                                                                   
GAAP Net income attributable to iGATE common shareholders  $27,145 $16,975
                                                                   
Adjustments                                                         
Preferred dividend and accretion to preferred stock        7,615    7,093
Amortization of Intangible assets                          2,748    3,111
Stock Based Compensation                                   3,125    2,812
Delisting expenses                                         93       2,115
Merger and reorganization expenses                         419      --
Forex (gain) / loss on acquisition hedging and             401      (980)
remeasurement
Income tax adjustments                                     (1,681)  (2,126)
Non-GAAP Net income attributable to iGATE common           $39,865 $29,000
shareholders
                                                                   
Weighted average shares outstanding, Basic                 57,285   57,006
Add back: assumed preferred stock conversion               19,147   17,692
Non-GAAPshares outstanding, Basic                         76,432   74,698
                                                                   
Weighted average dilutive commonshares outstanding        59,003   58,484
Add back: assumed preferred stock conversion               19,147   17,692
Weighted average dilutive common equivalent shares         78,150   76,176
outstanding
                                                                   
Basic EPS (GAAP) toBasic EPS (Non-GAAP):                           
Basic EPS (GAAP)                                           $0.36   $0.23
Preferred dividend and accretion to preferred stock        0.10     0.09
Amortization of Intangible assets                          0.04     0.04
Stock Based Compensation                                   0.04     0.04
Delisting expenses                                         0.00     0.03
Merger and reorganization expenses                         0.00     0.00
Forex (gain) / loss on acquisition hedging and             0.00     (0.01)
remeasurement
Income tax adjustments                                     (0.02)   (0.03)
Basic EPS (Non-GAAP)                                       $0.52   $0.39
                                                                   
Diluted EPS (GAAP) to Diluted EPS (Non-GAAP):                       
Diluted EPS (GAAP)                                         $0.34   $0.22
Preferred dividend and accretion to preferred stock        0.10     0.09
Amortization of Intangible assets                          0.04     0.04
Stock Based Compensation                                   0.04     0.04
Delisting expenses                                         0.00     0.03
Merger and reorganization expenses                         0.01     0.00
Forex (gain) / loss on acquisition hedging and             0.00     (0.01)
remeasurement
Income tax adjustments                                     (0.02)   (0.03)
Diluted EPS (Non-GAAP)                                     $0.51   $0.38

Non-GAAP Disclosure of Adjusted EBITDA

iGATE presents Adjusted EBITDA as a supplemental measure of its performance.
iGATE defines Adjusted EBITDA as net income plus (i)depreciation and
amortization, (ii)interest expense, (iii)income tax expense, minus
(iv)other income, net plus (v)foreign exchange (gain)/ loss, (vi)stock
based compensation, (vii)delisting expenses and (viii)merger and
reorganization expenses. iGATE eliminated the impact of the above because it
does not consider them as indicative of its ongoing operating performance.
These adjustments are itemized below. You are encouraged to evaluate these
adjustments and the reasons iGATE considers them appropriate for supplemental
analysis. In evaluating Adjusted EBITDA, you should be aware that in the
future iGATE may incur expenses that are the same as or similar to some of the
adjustments in this presentation. iGATE's presentation of Adjusted EBITDA
should not be construed as an inference that its future results will be
unaffected by unusual or non-recurring items.

iGATE presents Adjusted EBITDA because iGATE believes it assists investors and
analysts in comparing iGATE's performance across reporting periods on a
consistent basis by excluding items that it does not believe are indicative of
iGATE's core operating performance. In addition, iGATE uses Adjusted EBITDA:
(i)as a factor in evaluating management's performance when determining
incentive compensation, (ii)to evaluate the effectiveness of its business
strategies and (iii)to measure iGATE's compliance with certain covenants of
its credit agreement and indenture.

Adjusted EBITDA has limitations as an analytical tool. Some of these
limitations are:

  *Adjusted EBITDA does not reflect iGATE's cash expenditures or future
    requirements of cash for capital expenditures or contractual commitments;
    
  *Adjusted EBITDA does not reflect changes in, or cash requirements for,
    iGATE's working capital needs;
    
  *Adjusted EBITDA does not reflect the significant interest expense, or the
    cash requirements necessary to service interest or principal payments, on
    iGATE's debts; although depreciation and amortization are non-cash
    charges, the assets being depreciated and amortized will often have to be
    replaced in the future, and adjusted EBITDA does not reflect any cash
    requirements for such replacements; non-cash compensation is and will
    remain a key element of iGATE's overall long-term incentive compensation
    package, although iGATE excludes it as an expense when evaluating its
    ongoing operating performance for a particular period; and
    
  *Adjusted EBITDA does not reflect the impact of certain cash charges
    resulting from matters iGATE considers not being indicative of its ongoing
    operations; and other companies in iGATE's industry may calculate adjusted
    EBITDA differently than iGATE does, limiting its usefulness as a
    comparative measure.

Because of these limitations, adjusted EBITDA should not be considered in
isolation or as a substitute for performance measures calculated in accordance
with GAAP. iGATE compensates for these limitations by relying primarily on its
GAAP results and using Adjusted EBITDA only supplementally.

CONTACT: Media Contact
         Prabhanjan Deshpande "PD"
         +91 80 4104 5006
         PD@igate.com
        
         Investor Contact
         Araceli Roiz
         +1 510 896 3007
         araceli.roiz@igate.com

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