The Pittsburgh, Pennsylvania-based company had been threatened with delisting from Nasdaq as it struggled to meet compliance deadlines mandated by Sarbanes-Oxley relating to a review of its accounting procedures and controls. It was subsequently given the green light by the Securities and Exchange Commission earlier this month.
In the three months ended March 31, 2005, the company made a net profit of $1.3m compared to a loss of $1.8m in the year-ago period, on revenue that grew 8.6% to $69.6m.
Profitability was boosted by a net tax benefit of $1.9m relating to the reversal of prior year tax accruals following a recent IRS audit.
CEO and founder Sunil Wadhwani, said the company’s Indian offshore subsidiary iGate Global Solutions suffered from lower billing rates, but said this was offset by a decrease in selling, general, and administrative expenses.
The company’s shares fell 1% to $3.91 following the announcement of the results, giving it a market capitalization of $202.5m.
