Thursday, 8 May 2008

Cognizant's Revenue Increased

Cognizant Technology Solutions Corporation announced its financial results for the first quarter ended March 31, 2008. Revenue for the first quarter increased to USD643.1 million, up 7.2% from USD600 million in the fourth quarter of 2007, and up 40% from USD460.3 million in the first quarter of 2007.

This company's GAAP net income was USD101.9 million or USD0.34 per diluted share, compared to USD75.4 million, or USD0.25 per diluted share, in the first quarter of 2007.

On the other hand, Cognizant's GAAP operating margin for the quarter was 17.4% and excluding stock based compensation expense of USD13.0 million and stock-based Indian fringe benefit tax expense of USD0.9 million. For non-GAAP operating margin was 19.5%, in line with the company’s targeted 19 to 20% range. Reconciliations of these non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

"The quarter's results achieved despite the increased economic uncertainty and challenges in the financial services industry, testify to the resilience of our business model which is diversified across business segments, service offerings and geographic regions," said Francisco D’Souza, President and CEO of Cognizant. 

D'Souza continued, they have adopted a more cautious view for the remainder of the year to reflect the heightened economic challenges over the past two months.