WNS announces results for second quarter

WNS (Holdings), a leading provider of offshore business process outsourcing (BPO) services, today announced results for the quarter ended September 30, 2007 and reiterated its guidance for fiscal 2008.

New York, Nov 15 (ANI: WNS (Holdings), a leading provider of offshore business process outsourcing (BPO) services, today announced results for the quarter ended September 30, 2007 and reiterated its guidance for fiscal 2008.

"We were able to deliver over 35% quarter-on-quarter growth in revenue less repair payments. Our sales pipeline is at its strongest for the year and we have been particularly successful with expanding existing client relationships during the quarter" said Neeraj Bhargava, Group Chief Executive Officer. "Further, our organization-wide focus on reducing employee attrition has begun to show encouraging results."

WNS recorded a basic loss per share of 25 cents due to a one-time impairment charge of $15.5 million in respect of goodwill and intangible assets and costs related to the continued redeployment of resources associated with the bankruptcy of First Magnus Financial Corporation or First Magnus. Basic income per share (excluding share-based compensation and related fringe benefit taxes, amortization and impairment of goodwill and intangible assets) was 19 cents for the quarter.

"We continue to minimize the impact of the loss of First Magnus as a client through initiatives such as a rapid redeployment of employees, the deferral of planned infrastructure expansion and a reduction in discretionary costs," said Mr. Bhargava. "These factors have collectively enabled us to perform better than we had expected for the quarter."

Financial Highlights: Fiscal Second Quarter Ended September 30, 2007

-- Quarterly revenue of $115.6 million, up 33.5% from the corresponding quarter last year.

-- Quarterly revenue less repair payments of $71.7 million, up 35.4% from the corresponding quarter last year.

-- Quarterly net loss of $10.5 million, down from net income of $6.0 million for the corresponding quarter last year.

-- Quarterly net income (excluding share-based compensation and related fringe benefit taxes, amortization and impairment of goodwill and intangible assets) of $8.0 million, up 8.4% from the corresponding quarter last year.

-- Quarterly basic loss per share of 25 cents, down from basic income per share of 16 cents for the corresponding quarter last year.

-- Quarterly basic income per share (excluding share-based compensation and related fringe benefit taxes, amortization and impairment of goodwill and intangible assets) of 19 cents, compared with 19 cents for the corresponding quarter last year.

-- Cash flows from operating activities of $15.5 million for the six months ended September 30, 2007, up from $7.9 million for the six months ended September 30, 2006. Reconciliations of non-GAAP financial measures to GAAP operating results are included at the end of this release.

Fiscal 2008 Guidance

WNS reiterates its October 3, 2007 guidance for fiscal 2008:

-- Revenue less repair payments is expected to be between $290illion and $295 million

-- Net income (excluding share-based compensation and related fringe benefit taxes, amortization and impairment of goodwill and intangible assets) is expected to be between $33.0 million to $ 35.0 million.

"We are confident of achieving our projected profitability for the year despite pressure from currency appreciation and the loss of First Magnus as a client," said Mr. Bhargava.

ANI