Igate Earnings Call Nuggets: Industry Growth Rate and Sales Prospects

Igate Corporation (NASDAQ:IGTE) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Industry Growth Rate

Joe Foresi – Janney Montgomery Scott LLC: My first question and I know that you’ve given color on this before and the numbers aren’t necessarily out there, but what are your thoughts on industry growth rate this year and then how would you expect iGATE’s performance to match up with that, obviously including the large deal size?

Phaneesh Murthy – President and CEO: I think it’s a little difficult for me to give you that color right now because we are – I’ll just give you a little bit of color on iGATE rather than the industry right now and what we’re seeing is that we’re seeing the two large deals, extremely large deals that we were talking about, both of which were north of $200 million. The first deal that we won will start translating into revenue from Q2 onwards. The second deal will start translating into revenue from Q3 onwards. So, that’s where we will see potentially some little jump up in revenue in addition to the other deals. In addition to that our pipeline actually is quite comfortable now, our pipeline compared to the same period last year is 75% higher and in terms of pipeline, the quality of our pipeline is also being significantly improved. So, we’re looking at 2013 a lot more optimistically than what happened in 2012 and remember 2012 was the integration year, so it was in essence a consolidation and protect year, but we were hoping for growth. So, we didn’t meet our internal goals no question about that in 2012. Part of it was the market environment which also has improved. So, overall, I’m certainly looking for some growth in 2013, difficult to provide you any color and we generally have no guidance philosophy anyway.

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