In August First Magnus announced it was no longer providing home loans and that it would end almost all of its work with WNS. WNS in turn said that the loss of First Magnus and other mortgage-related falloffs in it business would knock $16m off its annual revenue. For the second quarter, WNS recorded a $15.5m charge due to the First Magnus contract, dragging the company down to a net loss of $10.5m for the period, or $0.25 per share.
Excluding repair payments, revenue for the quarter was up 35% to $71.7m.
For the full fiscal 2008, WNS forecasts revenue minus repair payment to be between $290m and $295m. Net income, excluding stock options expenses and other costs such as the First Magnus expenses, is expected to come in between $33m and $35m.
