Home BusinessCognizant net up 21 per cent
Even as IT bellwether Cognizant Technology Solutions raised its outlook for 2009-10, it reported a 21 per cent growth in net profit for the quarter ended September 30, 2009, to $136.6 million compared with $112.8 million during the corresponding period a year ago.
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The Nasdaq-listed company’s revenue rose to $853.5 million from $734.7 million, an increase of 16 per cent from the year-ago quarter and 10 per cent sequentially (compared to the trailing quarter).
Quarterly diluted Earning Per Share (EPS) on Generally Accepted Accounting Principles (GAAP) basis was $0.45, compared to $0.38 in the year-ago quarter. Cognizant added around 3,900 professionals during the quarter to take its global headcount to over 68,000.
“We experienced strong organic growth across all industry sectors, geographies and service lines this quarter. The sequential revenue increase of $76.9 million is the largest in our history,” said Francisco D’Souza, president and CEO, Cognizant.
He added: “Clients are now increasingly approaching us to serve as a consultative business partner as their industries face comprehensive upheavals from the recession.”
D’Souza added revenue for the fourth quarter was expected to be around $880 million, indicating a sequential revenue growth of 3.1 per cent. Revenue for 2008-09 is expected to be at least $3.255 billion, up around 15.5 per cent compared to 2008.
The diluted EPS for 2008-09 was expected to be $1.75 on a GAAP basis, and $1.88 on a non-GAAP basis, which excludes $0.13 of estimated stock-based compensation and stock-based Indian fringe benefit tax expense. Due to continued volatility in currency markets, EPS guidance excludes any future non-operating foreign currency exchange gain or loss. The company’s cash (short-and long-term investments) position increased by over $195 million during the quarter to touch $1.34 billion.