VanceInfo 4Q upbeat but outlook disappoints
NEW YORK—Chinese information technology services provider VanceInfo Technologies Inc. said Tuesday that its fourth-quarter net income fell 41 percent as cost increases cut into revenue gains.
Net income in the three months to Dec. 31 came to $4.9 million, or 11 cents per share, from $8.4 million, or 19 cents per share, a year earlier.
Excluding share-based compensation expenses, amortization of intangible assets and other items, adjusted earnings came to 20 cents per share, in line with the average estimate of analysts polled by FactSet.
Revenue grew 46 percent to $87.2 million from $59.6 million a year earlier. That beat the $83 million expected by analysts.
Its operating expenses rose 69 percent to $25.9 million in the quarter.
The company, based in Beijing, said it expects adjusted first-quarter earnings of 14 cents to 15 cents per share, below the 19 cents that analysts were looking for. It also said it expects revenue of at least $80 million, above the $74 million predicted by analysts.
Full-year adjusted earnings were seen between 86 cents and 92 cents on revenue of at least $360 million. Analysts had predicted $341 million in revenue and adjusted earnings of 95 cents for the full year.
Shares fell 81 cents, or 6.2 percent, to close at $12.17 on Tuesday.