ITbriefing.NET

TechBriefing.net
Luxoft Holding, Inc Reports Results for Third Quarter FY2018

News: IT at home / IT Briefings   Date:
Luxoft Holding, Inc Reports Results for Third Quarter FY2018 - on DefenceBriefing.net

Luxoft Holding Inc (NYSE: LXFT), a global IT service provider, today announced results for the three months ended December 31, 2017.



Third Quarter FY2018 Highlights

  • Revenue of $236.6 million, up 14.3% year-over-year and up 3.8% sequentially
  • Adjusted EBITDA of $40.0 million and adjusted EBITDA margin of 16.9%, compared to $37.5 million and 18.1% in the year-ago quarter
  • GAAP net income of $20.6 million, up 10.9% year-over-year and up 11.4% sequentially
  • Non-GAAP net income of $30.5 million, up 9.0% from $27.9 million in the year-ago quarter and up 8.7% from $28.0 million last quarter
  • Diluted GAAP EPS of $0.60, up 9.1% from $0.55 in the year-ago quarter
  • Non-GAAP diluted EPS of $0.89, up 8.5% from $0.82 in the year-ago quarter
  • As of December 31, 2017, total number of employees was 13,101; Annual revenue per billable engineer was $85,392, up 4.5% year-over-year and up 3.2% sequentially
  • FY 2018 Guidance revised due to lower revenue from two Fortune 10 healthcare & telecom clients<br/>Note: Reconciliations of non-GAAP to GAAP measures are included at the end of the release.

“Our third quarter results demonstrate our continued progress in executing our strategic transformation to diversify our revenue streams, expand our presence in attractive end markets and strengthen our global delivery capabilities,” said Dmitry Loschinin, Luxoft’s CEO and President. “We had a number of bright spots this quarter, including consolidated revenue growth of 26.5% year-over-year, excluding the top two accounts, and double-digit revenue growth in each of our three lines of business. Ongoing strong demand for advanced digital and cloud deployments drove 20.4% year-over-year revenue growth in our Digital Enterprise line of business. Financial Services’ revenue increased 12.9% compared to last year, and was up 48.7% excluding the top two accounts. We also continue to experience strong demand in our Automotive line of business as autonomy drives investment in advanced technologies, improving in-vehicle user experiences and increasing the need for connected services and IT infrastructure. On a year-over-year basis, this line of business grew 10.1% in the quarter and 37.5% in the nine-month period and is on track to deliver annual growth of over 40%.”

“We continue to enhance our global competitive position and market penetration utilizing our expansive and scalable delivery platform. During the quarter, we opened a new delivery center in Berlin, the result of a strategic collaboration, with a major German multinational automotive manufacturer, to attract new talent for next-generation intelligent user experience for cars. We continue to increase our presence in Asia Pacific (APAC) following the opening of the Bangalore office. We expect to quickly ramp our engineer headcount here as we see many attractive opportunities to deliver IT services to financial institutions and other industries in Singapore, Australia, Malaysia and China from nearshore locations.”

The Company exhibited solid performance across key global markets. Revenue generated in North America increased 8.4% year-over-year while APAC and Europe revenues grew 114.2% and 22.0% year-over-year, respectively. The success we are having expanding our global presence and growing outside of financial services is meaningfully reducing our client concentration. Our top two accounts amounted to 34.4% of revenue, representing a 6.3 percentage point decrease year over year. On the same basis, the top five accounts amounted to 46.0% of revenue, representing a 7.2 percentage point decrease and the top ten accounts amounted to 57.2% of revenue, a decrease of 6.6 percentage points.

Mr. Loschinin concluded, “Looking ahead, we expect our full-year results to be affected by lower revenue from two large acquired telecom and healthcare clients. This is primarily the result of our de-emphasizing lower-margin, non-core business and strategically aligning our resources with an expanding number of attractive, higher-margin opportunities. While this will impact our revenue generation this fiscal year, we believe these actions position the Company more competitively in the long term. As a result, we currently expect our full-year fiscal 2018 revenue to be in the range of $900-905 million, down approximately 2%, and our adjusted EBITDA margin to be in the range of 15.0-15.2%.”

“Despite this near-term challenge, our confidence in the business remains strong. We see a number of attractive growth opportunities across our verticals, and we are confident we have the right strategy to further build our long-term growth potential and deliver increasing value to shareholders. The entire Luxoft team is focused on driving improved execution and entering fiscal 2019 with momentum across our business as we further implement our revenue diversification and business optimization strategies.”

Outlook for the Fiscal Year Ending March 31, 2018

The Company is revising its full-year outlook and expects:

  • Revenue to be in the range of $900 to $905 million, down approximately 2%, from the previous $920 million guidance
  • Adjusted EBITDA margin to be in the range of 15.0-15.2%, down from the previous guidance of 15.5-16.5%
  • Diluted EPS on GAAP basis to be at least $1.53 (unchanged)
  • Diluted EPS on a non-GAAP basis to be in the range from $2.77- $2.85, down from at least $2.85
  • EPS to be based on an estimated weighted average of 34.4 million diluted shares

Conference Call Information

The Company will host a conference call to review the results on Wednesday, February 14, 2018 at 8:00 a.m. ET. To participate, please dial 877-407-8293 or 201-689-8349 (outside the U.S.) or access the live webcast here.

A replay will be available two hours after the call at http://investor.luxoft.com or by dialing 877-660-6853 or 201-612-7415 (outside the U.S.) and entering the conference ID 13675016. The replay will be available until February 28, 2018.

Article source - Business Wire, all right reserved. Copyright 2018
Trademarks, logos, pictures and other items may be copyright of firms mentioned in this article.



This article comes from TechBriefing.net
http://techbriefing.net/

The URL for this story is:
http://techbriefing.net/modules.php?op=modload&name=News&file=article&sid=424188