WNS First Quarter Net Income Increases 83.8%; Net Income (Excluding Share-Based Compensation Expense and Amortization of Intangible Assets) Increases 104.2%



    Revenue Increases 112.2%;

    Revenue Less Repair Payments Increases 53.3%, Over Corresponding Quarter
in the Prior Fiscal Year

    WNS Reiterates Guidance for Fiscal 2008

    MUMBAI, INDIA & NEW YORK, August 15 /CNW/ - WNS (Holdings) Limited (NYSE:  
WNS), a leading provider of offshore business process outsourcing (BPO)
services, today announced strong results for the quarter ended June 30, 2007
and reiterated its guidance for fiscal 2008.

    "As evidenced by our results, our momentum coming into fiscal 2008
continues to be very strong," said Neeraj Bhargava, Group Chief Executive
Officer. "Our strong operating performance enabled us to exceed our revenue
and net income expectations for the first quarter. Further, we are encouraged
by our continued success with new clients highlighted by 11 new wins and 6
expansions by existing clients."

    WNS recorded basic income per ADS of 20 cents and basic income per ADS
(excluding share-based compensation expense and amortization of intangible
assets) of 26 cents for the quarter.

    "We were able to minimize the impact of the rupee appreciation through
tight cost controls, scale benefits and currency hedging," said Zubin Dubash,
Group Chief Financial Officer. "These factors have collectively enabled us to
achieve results beyond our expectations and give us confidence about our
position in relation to full year guidance."

    Financial Highlights: Fiscal First Quarter Ended June 30, 2007

    --  Quarterly revenue of $112.5 million, up 112.2% from the corresponding
quarter last year.

    --  Quarterly revenue less repair payments of $69.8 million, up 53.3%
from the corresponding quarter last year.

    --  Quarterly net income of $8.4 million, up 83.8% from the corresponding
quarter last year.

    --  Quarterly net income (excluding share-based compensation expense and
amortization of intangible assets) of $10.8 million, up 104.2% from the
corresponding quarter last year.

    --  Quarterly basic income per ADS of 20 cents, up from 13 cents for the
corresponding quarter last year.

    --  Quarterly basic income per ADS (excluding share-based compensation
expense and amortization of intangible assets) of 26 cents, up from 15 cents
for the corresponding quarter last year.

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

    Key Announcements

    --  WNS was the top ranked Indian outsourcing provider according to the
4th annual Black Book of Outsourcing Survey conducted by the Brown Wilson
Group, a leading industry analyst. WNS also made dramatic gains in this year's
global ranking, overtaking numerous other outsourcing providers to its new
position as #3.

    --  As expected, WNS transferred to AVIVA the Sri Lankan facility
dedicated to this client on July 2, 2007, subsequent to AVIVA exercising its
call option on January 1, 2007. This transfer was a part of the
Build-Operate-Transfer contract with the client.

    --  WNS completed transition to majority independent Board of Directors
with the appointment of Sir Anthony Greener. Sir Anthony joins WNS after
retiring from British Telecom plc (BT) in September 2006, where he served as
Deputy Chairman of the Board. He was Chairman of Diageo plc through 2000 and
Chief Executive of Dunhill Holdings prior to that. Guy Sochovsky, who has
served on the Board of Directors since January 26, 2006 as a representative of
majority shareholder Warburg Pincus, stepped down on July 24, 2007.

    --  Deborah S. Kops was appointed Chief Marketing Officer on May 24,
2007. Ms. Kops joins WNS after holding managing director positions at Deutsche
Bank London, where she led global sourcing transformation efforts, and
FleetBoston (now Bank of America), where she managed corporate administrative
services. She was one of the founding partners of PricewaterhouseCoopers'
business process outsourcing division.

    Fiscal 2008 Guidance

    WNS reiterates its May 15, 2007 guidance for fiscal 2008:

    --  Revenue less repair payments expected to be between $302 million and
$307 million

    --  Net income (excluding share-based compensation expense and
amortization of intangible assets) expected to be between $41.0 million to $
43.0 million.

    --  Revised exchange rate assumptions for the above guidance are 40.70
Indian Rupees to 1 US Dollar and 2.03 US Dollars to 1 Pound Sterling for the
full fiscal year.

    "We have maintained our initial guidance despite the appreciation of the
rupee as we are confident of being able to control costs and increase SG&A
leverage through the year," said Zubin Dubash, Group Chief Financial Officer.
"Further, we have reduced our estimate of share-based compensation expense for
fiscal 2008 from $8.8 million to $7.8 million."

    Conference Call

    WNS will host a conference call on August 16, at 8 a.m. (EDT) to discuss
the company's quarterly results. To participate, callers can dial 800-295-3991
from within the U.S. or +1-617-614-3924 from any other country. The
participant passcode is 1352836. A replay will be made available online at
www.wnsgs.com for a period of three months beginning two hours after the end
of the call.

    About WNS

    WNS is a leading provider of offshore business process outsourcing, or
BPO, services. We provide comprehensive data, voice and analytical services
that are underpinned by our expertise in our target industry sectors. We
transfer the execution of the business processes of our clients, which are
typically companies located in Europe and North America, to our delivery
centers located primarily in India. We provide high quality execution of
client processes, monitor these processes against multiple performance
metrics, and seek to improve them on an ongoing basis.

    Our ADSs are listed on the New York Stock Exchange. For more information,
please visit our website at www.wnsgs.com.

    About Non-GAAP Financial Measures

    For financial statement reporting purposes, the company has two
reportable segments: WNS Global BPO and WNS Auto Claims BPO. In the auto
claims segment, WNS provides claims-handling and accident-management services,
in which it arranges for automobile repairs through a network of third-party
repair centers. In its accident-management services, WNS acts as the principal
in dealings with the third-party repair centers and clients.

    The amounts invoiced to WNS clients for payments made by WNS to
third-party repair centers are reported as revenue. As the company wholly
subcontracts the repairs to the repair centers, it evaluates its financial
performance based on revenue less repair payments to third party repair
centers, which is a non-GAAP measure.

    WNS believes revenue less repair payments reflects more accurately the
value addition of the business process services it directly provides to its
clients. The presentation of this non-GAAP information is not meant to be
considered in isolation or as a substitute for the company's financial results
prepared in accordance with U.S. GAAP. WNS revenue less repair payments may
not be comparable to similarly titled measures reported by other companies due
to potential differences in the method of calculation.

    Safe Harbor Statement under the provisions of the United States Private
Securities Litigation Reform Act of 1995

    This news release contains forward-looking statements, as defined in the
safe harbor provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements involve a number of risks, uncertainties and other
factors that could cause actual results to differ materially from those that
may be projected by these forward looking statements. These risks and
uncertainties include but are not limited to a slowdown in the U.S. and Indian
economies and in the sectors in which our clients are based, a slowdown in the
BPO and IT sectors world-wide, competition, the success or failure of our past
and future acquisitions, attracting, recruiting and retaining highly skilled
employees, technology, legal and regulatory policy as well as other risks
detailed in our reports filed with the U.S. Securities and Exchange
Commission. These filings are available at www.sec.gov. We may, from time to
time, make additional written and oral forward-looking statements, including
statements contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. You are cautioned not to place
undue reliance on these forward-looking statements, which reflect management's
current analysis of future events. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

    
                            WNS (HOLDINGS) LIMITED
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
           (Amounts in thousands, except share and per share data)

                                                    June 30,    June 30,
                                                      2007        2006

    Revenue                                           112,523      53,026
    Cost of revenue (refer to note below)              90,206      37,430
    Gross Profit                                       22,317      15,596
    Operating expenses:
    Selling, general and administrative expenses
     (refer note as below)                             14,722      10,130
    Amortization of intangible assets                     829         471
    Operating income                                    6,766       4,995
    Other (expense) income, net                         2,686         (35)
    Interest expense                                        -         (32)
    Income before income taxes                          9,452       4,928
    Provision for income taxes                         (1,013)       (335)
                                                   -----------------------
    Net income                                         $8,439      $4,593
                                                   -----------------------
    Basic income per share                              $0.20       $0.13
    Diluted income per share                            $0.20       $0.12
    Basic weighted average ordinary shares
     outstanding                                   41,892,868  35,220,868
    Diluted weighted average ordinary shares
     outstanding                                   43,085,843  38,021,949

    Note:
    a) Includes the following share-based
     compensation amounts:
    Cost of Revenue                                       516           -
    Selling, general and administrative expenses          989         212
    

    Non-GAAP measure note:

    In addition to its reported operating results in accordance with U.S.
generally accepted accounting principles (US GAAP). WNS has included in the
table below non-GAAP operating measures that the Securities and Exchange
Commission defines as "non-GAAP financial measures". Management believes that
such non-GAAP financial measures, when read in conjunction with the company's
reported results, can provide useful supplemental information for investors
analyzing period to period comparisons of the company's results. The non-GAAP
financial measures disclosed by the company should not be considered a
substitute for, or superior to, financial measures calculated in accordance
with GAAP, and the financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully evaluated.

    
    Reconciliation of revenue less repair payments
     (non-GAAP) to revenue (GAAP)                     Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ----------------------

    Revenue less repair payments (Non-GAAP)           69,773     45,509
    Add: Payments to repair centers                   42,750      7,517
    Revenue (GAAP)                                   112,523     53,026

    Reconciliation of cost of revenue (non-GAAP to
     GAAP)                                            Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ----------------------

    Cost of revenue (Non-GAAP)                        47,456     29,913
    Add: Payments to repair centers                   42,750      7,517
    Cost of revenue (GAAP)                            90,206     37,430
    

    
    Reconciliation of selling, general and
     administrative expense (non-GAAP to GAAP)        Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ----------------------

    Selling, general and administrative expenses
     (excluding share-based compensation expense)
     (Non-GAAP)                                       13,733      9,918
    Add: Share-based compensation expense              989         212
    Selling, general and administrative expenses
     (GAAP)                                           14,722     10,130

    Reconciliation of operating income (non-GAAP to
     GAAP)                                            Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ----------------------

    Operating income (excluding share-based
     compensation expense and amortization of
     intangible assets) (Non-GAAP)                    9,100       5,678
    Less: Share-based compensation expense            1,505        212
    Less: Amortization of intangible assets            829         471
    Operating income (GAAP)                           6,766       4,995
    

    
    Reconciliation of net income (non-GAAP to GAAP)   Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ----------------------

    Net income (excluding share-based compensation
     expense and amortization of intangible assets)
     (Non-GAAP)                                       10,773      5,276
    Less: Share-based compensation expense            1,505        212
    Less: Amortization of intangible assets            829         471
    Net income (GAAP)                                 8,439       4,593
    

    
    Reconciliation of basic income per ADS (non-
     GAAP to GAAP)                                    Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ----------------------

    Basic income per ADS (excluding amortization of
     intangible assets and share based compensation
     expense) (Non-GAAP)                               0.26       0.15
    Less: Adjustments for amortization of
     intangible assets and share-based compensation
     expense                                           0.06       0.02
    Basic income per ADS (GAAP)                        0.20       0.13
    

    
    Reconciliation of diluted income per ADS (non-
     GAAP to GAAP)                                    Three months ended
                                                    ----------------------
                                                     June 30,   June 30,
                                                       2007       2006
                                                    ---------- -----------

    Diluted income per ADS (excluding amortization
     of intangible assets and share based
     compensation expense) (Non-GAAP)                  0.25       0.14
    Less: Adjustments for amortization of
     intangible assets and share-based compensation
     expense                                           0.05       0.02
    Diluted income per ADS (GAAP)                      0.20       0.12
    

    
                            WNS (HOLDINGS) LIMITED
                    CONDENSED CONSOLIDATED BALANCE SHEETS
           (Amounts in thousands, except share and per share data)

                                                  June 30,     March 31,
                                                    2007         2007
                                                (Unaudited)
                                                --------------------------
    ASSETS
    Current assets
      Cash and cash equivalents                      $75,375      $112,340
      Bank deposits                                   12,000        12,000
      Accounts receivable, net of allowance of
       $330 and $364, respectively                    48,130        40,592
      Funds held for clients                           7,409         6,589
      Employee receivable                              1,526         1,289
      Prepaid expenses                                 3,813         2,162
      Prepaid income taxes                             2,996         3,225
      Deferred tax assets                                588           701
      Other current assets                             7,117         4,524
                                                --------------------------
        Total current assets                         158,954       183,422

    Goodwill                                          62,116        37,356
    Intangible assets, net                            15,780         7,091
    Property and equipment, net                       47,343        41,830
    Deposits                                           5,522         3,081
    Deferred tax assets                                4,587         3,101
                                                --------------------------
    TOTAL ASSETS                                    $294,302      $275,881
                                                --------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
      Accounts payable                               $16,778       $18,751
      Accrued employee costs                          15,810        18,492
      Deferred revenue - current                       7,459         9,827
      Income taxes payable                               864            88
      Obligations under capital leases -
       current                                            10            13
      Deferred tax liabilities                           206             -
      Other current liabilities                       22,749        16,239
                                                --------------------------
        Total current liabilities                     63,876        63,410

    Deferred revenue - non current                     6,462         5,051
    Deferred rent                                      1,506         1,098
    Accrued pension liability                          1,104           771
    Deferred tax liabilities - non current             2,372            23

    Shareholders' equity:
      Ordinary shares, $0.16 (GBP  0.10) par
       value; Authorized 50,000,000 shares
      Issued and outstanding: 41,906,477 and
       41,842,879 shares, respectively                 6,531         6,519
      Additional paid-in-capital                     157,150       154,952
      Ordinary shares subscribed, 21,006 and
       30,022 shares, respectively                       117           137
      Retained earnings                               37,778        30,685
      Accumulated other comprehensive income          17,406        13,235
                                                --------------------------
        Total shareholders' equity                   218,982       205,528
                                                --------------------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $294,302      $275,881
                                                --------------------------
    




For further information:

For further information: Investors: WNS (Holdings) Limited Jay
Venkateswaran, +1-212-599-6960 Senior VP -- Investor Relations ir@wnsgs.com or
Media: The Torrenzano Group Al Bellenchia, +1-212-681-1700 ext. 156
abellenchia@torrenzano.com

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WNS (HOLDINGS) LIMITED

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