Indian outsourcing services provider Patni Computer Systems has reported a 17.2% decline in net income to $35.7m for the third quarter 2009, compared to $43.1m in the same quarter last year. Revenue was down 9% at $167.2m. Skip related content
Operating income declined 2% to $27.1m, while diluted EPS declined to $0.27 from $0.32 in the same quarter last year. The company said application development and maintenance accounted for 65% of total revenue, with package software implementation at 13%. Product engineering services represented 11%, while infrastructure management services accounted for 6%, and business process outsourcing 5%.
Geographically, the Americas region contributed 80.8% of total revenue, EMEA 13.5%, and Asia Pacific 5.7%. During the quarter it restructured its business into four key geographies: the Americas, EMEA, APAC, and SAARC. It appointed Naresh K Lakhanpal as president of Patni Americas, V Mathivanan as president of the APAC unit, and Deepak Khosla as head of the SAARC region.
For the nine-month period, the company reported a 7% decline in net income to $79.3m compared to $85.4m a year ago, on revenue down 10% at $486m.
Surjeet Singh, chief financial officer of Patni, said: "Volumes were up during the quarter and pricing was stable. All customer categories grew on volumes and marginal forex change. Cost realignment gains continued during the quarter as our operating earnings remained ahead of our expectations. With continued investments in geographic expansion, we are confident of capturing faster incremental growth along with inorganic additions besides gains on resultant absorption benefits in our cost base over the next 12- 18 months."
Looking ahead to the fourth quarter it expects revenue between $168m and $169m and net income between $24m and $25m.
