Cognizant Q2 revenue up 43%

CHENNAI: Cognizant Technology Solutions Corp., an e-business and application

management solutions provider has announced the financial results for the second

quarter ended June 30, 2001.

Revenue for the second quarter increased to $45.4 million, up 43 per cent

from $31.8 million in the second quarter of 2000. Net income for the quarter

ended June 30, 2001 increased 46 per cent to $5.8 million, as compared to $4.0

million in the second quarter of 2000. Diluted earnings per share increased 45

per cent to $0.29 from $0.20 in the year ago period.

"In recent months we have seen an increasing number of blue chip

companies start the process of selecting a long-term strategic partner for large

scale offshore outsourcing," said Kumar Mahadeva, chairman and chief

executive officer. "Revenue from application management increased 66 per

cent to account for 51 per cent of our revenue mix as enterprises continue to

focus on long-term, cost effective outsourcing. Although billing rates for

application management are historically lower than the rates for e-Business

development, application management offers higher utilization and a higher

offshore mix, which allows us to maintain our margins at historical

levels," stated Gordon Coburn, chief financial officer.

"Approximately 80 per cent of our second quarter revenue came from

customers who have utilized our services for more than a year. We remain

confident in our ability to navigate through the IT slowdown and continue our

strong financial performance," said Coburn.