Pittsburgh, Pennsylvania-based iGate trimmed its net loss to $27.5m during the 12 months ended December 31, 2002, compared to a net loss of $55.5m in 2001, on revenue that fell 30.6% to $292.6m. The bottom line was hit by a $29.7m impairment charge to write off goodwill against its business, of which $17.6m related to its IT staffing activities and $12.1m related to its applications divisions.
There was also a $7.4m charge to write off other acquisitions, and a $4.2m charge as part of its reorganization plan, which involved repositioning iGate into two separate operating units focusing on professional and software services, and consolidating its back-office support operations into one office in Pittsburgh.
During the fourth quarter, iGate’s net loss widened to $35.6m from a loss of $14.4m in 2001, on revenue that fell 19% to $69.6m. CEO Sunil Wahdwani said: In spite of extremely difficult market conditions, which had a direct and negative impact on our 2002 revenues and operations, iGate made significant progress towards increasing profitability while continuing to maintain a very strong cash position.
This proved to be the one bright spot for iGate, which managed to increase its cash and investments to $108m, an increase of $12.2m on 2001. Meanwhile, cash in the bank increased marginally to $56.8m from $54.4m in 2001.
Source: Computerwire
