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Cognizant reports second quarter 2009 results
By siliconindia
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Wednesday, 05 August 2009, 00:09 IST |
18 Comments
Bangalore: Cognizant Technology Solutions (NASDAQ: CTSH) today announced its second quarter 2009 results. Its quarterly revenue rose 13 percent from the year-ago quarter and four percent sequentially to $776.6 million (from $685.4 million in Q2 2008).
The IT firm reported a profit, as its second quarter GAAP net income is $141.3 million or $0.47 per share, compared to $103.9 million or $0.35 per share, in the second quarter of 2008. Quarterly diluted EPS on a non-GAAP basis, which excludes stock-based compensation and stock-based Indian fringe benefit tax expense, was $0.50, compared to $0.39 in the year-ago quarter.
"Despite a fluid economic environment, we posted industry-leading revenue growth this quarter, which demonstrates the resilience of our business model and our ability to adapt to evolving client needs," said Francisco D'Souza, President and CEO of Cognizant. "Large corporations are seeking us out to streamline global delivery, rationalize costs and create new business capabilities that significantly advance their business objectives over the short, medium and long term."
GAAP operating margin for the quarter was 19.5 percent. Excluding stock based compensation expense of $8.4 million and stock-based Indian fringe benefit tax expense of $1.3 million, non-GAAP operating margin was 20.8 percent, above the company's targeted 19-20 percent range. Earnings for the quarter included $14.1 million of pre-tax non-operating foreign currency exchange gains (net of hedge losses), or $0.04 per share, primarily resulting from favorable fluctuations in the European currencies and Indian rupee during the period.
Based on these results, Cognizant has increased its 2009 revenue growth guidance. D'Souza said, "Based on the strength of our second quarter results, we're increasing our 2009 revenue growth guidance from at least 10 percent to at least 11.5 percent." Third quarter 2009 revenue is anticipated to be at least $800 million and fiscal 2009 revenue is expected to be at least $3.14 billion, up at least 11.5 percent compared to 2008.
