Virtusa Corporation F2Q09 (Qtr End 09/30/08) Earnings Call Transcript

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2008-11-12 01:54:12.0

Tags: Industry, Virtusa, Call Transcript, Client, Earnings, Pricing, Strategy, Marketing, Management, Seeking Alpha, Industry, Virtusa, Call Transcript, Client, Earnings, Pricing, Strategy, Marketing, Management, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). And we'll take our first question that will come from John Maietta with Needham & Company. Your line is open. Go ahead sir.

John MaiettaNeedham & Company

Hey, thanks very much, and congratulations to everyone on the promotions. The first question I had, Kris, or Tom or Ranjan, whoever it's appropriate for, I was wondering if you could comment on sort of the pricing environment there, and what you're seeing across different industry sectors.

Thomas Holler

Sure, John, it's Tom. As far as pricing goes, we continue to see a stable pricing environment as we've seen in the recent past. Newer clients that we've won over the last 12 months or so, we do see higher rates relative to the realized rates of the company. Those new clients are not yet contributing meaningfully enough to revenue to make a difference at the corporate level. So at a corporate level our overall realized bill rates are relatively flat sequentially in a year-over-year basis.

John MaiettaNeedham & Company

Okay. And again you continue to add a good number of customers in the quarter. Can we continue at this pace in an uncertain environment?

Kris Canekeratne

John, so we certainly had a very strong group of clients that we've added. I believe we've added – we added six in the most recent quarter, six the quarter in Q1 and ten the quarter before that. Our stated goals have been to add between three and five – between three clients to five clients in a quarter. And we feel that given the pipeline visibility that we have, that we can manage to add about that number at least in the out quarters.

John MaiettaNeedham & Company

Okay. And then just my final question, with regard to clients ramping, do you notice any patterns across your three primary industry verticals with regard to either folks pushing out projects or accelerating in certain projects, anything of note there?

Kris Canekeratne

We've certainly seen strong growth in our financial services sector and that has certainly led the growth across all industry segments. We have actually seen growth across all industry that includes financial services, media information and technology and telecommunications has been at our British Telecom. In media and technology and communications, we have slight quarter-over-quarter growth assuming they netted out BT. So overall, we've seen strong expansion within our existing client base. We've also seen good traction in terms of adding new clients. A large part of this is a direct result of our value proposition. We create a tangible difference for our clients where we can improve the internal efficiencies, we can accelerate their time to market and reduce their overall costs, all very important, specifically in this economic environment.

 

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