12:35PM New York – WNS Limited, an off-shore business services provider fourth quarter revenue rose 4.9% but net income declined 32% on impairment charges.

WNS (Holdings) Limited, is a provider of offshore services reported fourth quarter revenue increased 4.9% for fiscal 2008 of $116.1 million from $110 million for the corresponding quarter of last year.

Net income declined 31.7% to $6.1 million or $0.14 per ADS compared with $8.9 million or 21 cents per ADS for the same quarter of 2007.

Revenue for the fiscal year ended rose 30.5% to $459.9 million compared to $352.3 million for the fiscal year of 2007. Fiscal year net income decreased 64% to $9.5 million or 22 cents per ADS from $26.6 million, or 65 cents per ADS for a year-ago.

Adjusted revenue, which is Non-GAAP based, increases 32.3% to $290.7 million over prior fiscal year 2007. Net income (excluding share-based compensation related fringe benefit taxes and amortization and impairment of goodwill and intangible assets) increases 15.0%.

The 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 in revenue less repair payments in fiscal 2008. These have also taken vital part to decreased company’s net income, of 64.3% for fiscal 2008.

Net income for fiscal 2008 was $9.5 million, a decrease of 64.3% from 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 restructuring costs associated with the bankruptcy of First Magnus Financial Corporation.

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

""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.

Philippines and UK expansions

In the quarter the company entered in a joint-venture with Advance Contact Solutions Inc. based in Philippines with a capacity of 200 operators. The company also acquired UK based auto insurance claims processor Call 24/7.

Fiscal 2009 Guidance

Adjusted revenue is expected to be between $373 million and $378 million. Net income expected to be between $44.0 million and $46.0 million.

WNS (Holdings) Limited stock (WNS: chart) closed at $18.17 on Thursday.