Cognizants Q3 profit up 22 percent, maintains guidance

Cognizant Technology Solutions reported a 22 per cent rise in quarterly profit as revenue rose 18 per cent. The IT company reaffirmed its full-year revenue guidance and increased the full-year EPS expectation.

Net income rose to $276.9 million, or 91 cents per share, from $227.1 million, or 73 cents per share, a year earlier.

The revenue of the company rose to $1.89 billion from $1.60 billion, a sequential rise of 5.4% and 18.2% year-over-year.
"Cognizant's strong results reaffirm the acceptance of our value proposition that helps clients address the dual mandate of driving efficiency and effectiveness in their core business while investing in innovation and business transformation for long-term growth," said Francisco D'Souza, Chief Executive Officer.

"Our consulting-led approach, intimate client relationships, deep domain knowledge and robust execution give us the confidence to deliver revenue growth of at least 20% in 2012," he added.

The net headcount addition for the quarter was approximately 5,100. The IT firm expects its fourth quarter revenue to be at least $1.94 billion.

"Our financial model continues to allow us to deliver robust top-line growth with stable margins, while investing in our next generation of services to ensure long-term strength," said Karen McLoughlin, Chief Financial Officer.