Cognizant releases third quarter 2010 results

by CXOtoday Staff    Nov 01, 2010

Francisco DSouzaCognizant Technology Solutions (NASDAQ: CTSH), an IT consulting and business process outsourcing services provider, declared its third quarter 2010 financial results.

The report stated that revenue for the third quarter of 2010 rose to $1.217 billion, up 43 percent from $853.5 million in the third quarter of 2009. GAAP net income was $203.7 million, or $0.66 per diluted share, compared to $136.6 million, or $0.45 per diluted share, in the third quarter of 2009.

“The success of our long-time reinvestment strategy positions us as a credible advisor to our clients, as we work with them to address the critical issues facing their businesses: the new generation of increasingly globalized and virtualized business models, the new generation of millennials as consumers and employees, and the new generation of transformative technologies such as cloud, social computing and mobility,” observed Francisco D’Souza, president and CEO, Cognizant.

Diluted EPS on a non-GAAP basis was $0.69. GAAP operating margin for the quarter was 18.8 percent. Excluding stock-based compensation expense of $14.1 million, non-GAAP operating margin was 19.9 percent, within the Company’s targeted 19-20 percent range. Earnings for the quarter included $7.6 million, or $0.03 per share, of net non-operating foreign currency exchange gains. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

“Despite the strengthening of the Indian rupee, we remain confident in our ability to maintain non-GAAP operating margins within our targeted range,” remarked Gordon Coburn, chief financial and operating officer, Cognizant.

The company, for the next quarter, has anticipated the revenue to be at least $1.27 billion. The Fiscal 2010 revenue is expected to be at least $4.55 billion i.e. up at least 38.8 percent compared to 2009.