Patni net income down
By Sumir Singh

Indian tech major Patni has released its Q2 2011 results and while revenue is up, net income has fallen dramatically

Second Quarter Highlights

- Revenues for the quarter at US $183.8 million (Rs 8,221 million). Up 9.7% from US$ 167.6 million (Rs 7,776 million) in the corresponding quarter 2010. Revenue concentration of Top 10 Customers decreased to 48.4% from 48.6% in corresponding quarter 2010. Three Fortune 1000 clients added in the quarter.
- Non-GAAP EBITDA for the quarter at US$22.7million. Down by 37.7 % from US$36.4 million EBITDA in the corresponding quarter 2010.
-  Net Income for the quarter at US$2.4 million (Rs 108 million). Down 92.4% from US$ 31.7 million (Rs 1,473 million) in the corresponding quarter 2010. Down by 45.6% to US$18.9 million after adjusting for non-GAAP adjustments.
- EPS for the quarter at US$ 0.02 per share (US$ 0.04 per ADS); adjusted for non GAAP items, is at US$ 0.14 (US$ 0.29 per ADS).
- During the quarter, the Company generated cash flow of $16.5 million from operating activities and ended the quarter with $394 million in cash and short-term investments.
- Headcount at 18,372 as on June 30, 2011.

Commenting on the performance, Phaneesh Murthy, CEO and MD, Patni said, “Our integration process is well on track as we build the two companies together under our new vision. We expect our results to stabilize in 2012 after all the integration expenses and the accounting charges related to the acquisition have evened out. With the front end sales already integrated, I am happy that our joint go-to market strategy has been responding well among our customers and markets. Our focus is on building a platform for long term growth and taking both the companies to the best in class earnings growth that iGATE has been able to achieve over the last three to five years.”