WNS announces fiscal 2008 earnings

New York/ Mumbai, May 20 (ANI/Business Wire India): WNS (Holdings) Limited, a leading provider of offshore business process outsourcing (BPO) services, announced results for the fiscal year ended March 31, 2008 and released its guidance for fiscal 2009.

Revenue for fiscal 2008 of $459.9 million increased 30.5 per cent over the prior fiscal year. Revenue less repair payments of 290.7 million dollars increased 32.3 per cent over the prior fiscal year.

This growth in revenue less repair payments for the year was achieved despite the loss of First Magnus Financial Corporation as a client following its bankruptcy filing in August 2007.

First Magnus Financial Corporation contributed 4.2 million dollars in revenue less repair payments in fiscal 2008, a decline from 15.0 million dollars in fiscal 2007.

"WNS has ended fiscal 2008 on a strong note with our profitability back on track and our sales engine gaining momentum." said Neeraj Bhargava, Group Chief Executive Officer.

"In spite of challenges in the mortgage area, we have accomplished 32 per cent growth in our revenue less repair payments, expanded our global footprint, diversified our client base, delivered significant value to our clients and strengthened our industry-focused BPO businesses. We are excited about our prospects in fiscal 2009 and are well prepared to execute against the tremendous opportunities we see in the global BPO market," Neeraj added.

Net income for fiscal 2008 was 9.5 million dollars, a decrease of 64.3 per centrom the prior fiscal year.

This decrease was primarily due to a one-time impairment charge of $15.5 million in respect of goodwill and intangible assets and also costs related to the redeployment of resources associated with the bankruptcy of First Magnus Financial Corporation.

Net income (excluding share-based compensation, related fringe benefit taxes, and amortization and impairment of goodwill and intangible assets) was $37.0 million, an increase of 15.0 per cent from the prior year. This increase was achieved despite the loss of First Magnus Financial Corporation as a client and the significant appreciation of the Indian Rupee against the U.S. Dollar since fiscal 2007.

WNS recorded a basic income per ADS of $0.23 for fiscal 2008.

Basic income per ADS (excluding share-based compensation, related fringe benefit taxes, and amortization and impairment of goodwill and intangible assets) was $0.88 for the year.

The fiscal fourth quarter basic income per ADS of $0.14 was affected by unusually high fringe benefit taxes on share-based compensation of $1.5 million, or $0.03 per ADS.

This was essentially cash neutral for WNS as these taxes were recovered from employees exercising stock options and recognized as additional exercise price of options under Additional Paid in Capital on our Balance Sheet.

"Our fourth quarter profitability was higher than expected as we managed our operations tightly while investing in growth opportunities" said Alok Misra, Group Chief Financial Officer.

"Our cost structure, expected recurring revenue stream, diverse client base and foreign exchange hedging strategy prepare us well for the coming year," added Alok.

Financial Highlights: Fiscal Fourth Quarter Ended March 31, 2008

-- Quarterly revenue of $116.1 million, up 4.9 per cent from the corresponding quarter last year.

-- Quarterly revenue less repair payments of $75.2 million, up 17.4 per cent from the corresponding quarter last year.

-- Quarterly net income of $6.1 million, down 31.7 per cent from the corresponding quarter last year.

-- Quarterly net income (excluding share-based compensation, related fringe benefit taxes and amortization of intangible assets) of $10.1 million, down 4.9 per cent from the corresponding quarter last year.

-- Quarterly basic income per ADS of $0.14, down from basic income per share of $0.22 for the corresponding quarter last year.

-- Quarterly basic income per ADS (excluding share-based compensation, related fringe benefit taxes and amortization of intangible assets) of $0.24, down from $0.26 for the corresponding quarter last year.

-- Cash flows from operating activities of $41.1 million for fiscal 2008, up from $39.3 million for fiscal 2007

Financial Highlights: Fiscal Year Ended March 31, 2008

-- Revenue of $459.9 million, up 30.5 per cent from fiscal 2007.

-- Revenue less repair payments of $290.7 million, up 32.3 per cent from fiscal 2007.

-- Net income of $9.5 million, down 64.3 per cent from fiscal 2007.

-- Net income (excluding share-based compensation, related fringe benefit taxes, and amortization and impairment of goodwill and intangible assets) of $37.0 million, up 15.0 per cent from fiscal 2007.

-- Basic income per ADS of $0.23, down from $0.69 for fiscal 2007.

-- Basic income per ADS (excluding share-based compensation, related fringe benefit taxes, and amortization and impairment of goodwill and intangible assets) of $0.88, up from $0.83 for fiscal 2007.

Reconciliations of non-GAAP financial measures to GAAP operating results are included at the end of this release.

ANI