Sept 06, 2007 (LBO) – Massachusetts-based Virtusa Corp., an IT services firm with operations in Sri Lanka that raised 57 million dollars from a NASDAQ listing last month, said its first quarter profit fell slightly. “The company’s effective tax rate increased from 3.6 percent in the first quarter of fiscal 2007 to 20.4 percent in the first quarter of fiscal 2008 because the company is no longer recognizing an income statement benefit from the use of its deferred tax assets due to the release of the tax valuation allowance in fiscal 2007.” Net profit for the June quarter 2008 was 2.7 million dollars, down from the previous year compared to a net profit of 2.9 million dollars for the same quarter in fiscal 2007, the company said in a statement after listing on the NASDAQ in August.
In the June quarter, Virtusa’s revenue increased 46.1 percent year-over-year to 37.4 million dollars.
The company, headed by a Sri Lankan, filed for the IPO in April with the US Securities and Exchange Commission, seeking 92 million dollars through a NASDAQ listing.
The statement said Virtusa ended the quarter with 39.5 million dollars of cash and cash equivalents, and with no long-term debt.
The cash balance on June 30,