Cognizant posts Q1 results

Cognizant posts Q1 results
On Tuesday, IT firm Cognizant Technology Solutions declared its financial results quarter ended March 31, 2011. For the quarter, the NASDAQ listed firm"s total revenue increased by approx. 43 per cent to USD 1,370 million as against USD 960 million in the comparable period last year. For the quarter sequentially the revenue increased by 4.6 per cent.

The company also reported that its GAAP net income was reported at USD 208.3 million, or USD 0.67 per diluted share, as against USD 151.5 million, or USD 0.49 per diluted share, for the corresponding year ago quarter. In addition, its diluted EPS (earnings per share) on a non-GAAP basis was reported at USD 0.71.

GAAP operating margin for the quarter was 19.4 per cent. Without taking into consideration the stock-based compensation expense of USD 16.1 million, the company"s non-GAAP operating margin was 20.5 per cent.

The company"s Chief Financial and Operating Officer, Gordon Coburn said “Our strong financial model continues to offer the resources to thrust our long-term competitive differentiation. We are assured of our strategy of sustaining our non-GAAP operating margins within a targeted range of 19-20% while permitting for a robust and constant investment in new service and delivery capabilities."

The company is confident about its performance in the upcoming quarter and it anticipates second quarter revenue to be at around USD 1.45 billion. For the current fiscal, the company is projecting revenues of least USD 5.925 billion, up by 29 per cent as against FY 2010.

Last month, the company had collaborated with bioinformatics software firm Eagle Genomics to work alongside life sciences company Pistoia Alliance, Inc. to develop a cloud-based platform for streamlining sequence services.

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