Cognizant reports 60% rise in Q1 revenue

BANGALORE: Cognizant Technology Solutions has posted 60 per cent increase in its revenue for the quarter ended March 31, 2001. The company's revenues for the period touched $43.4 million against $27.1 million posted during the first quarter of 2000.

The net income for the quarter ended March 31, 2001 has increased by 61 per cent to $5.6 million, as compared to $3.5 million in the first quarter of 2000. Diluted earnings per share increased by 65 per cent to $0.28 from $0.17 in the corresponding period of the previous year.

Cognizant continued to achieve strong financial results despite a harsh environment for IT services, said chairman and chief executive officer Kumar Mahadeva. "Our ability to prosper in this market is a direct result of Cognizant’s proven onsite-offshore solutions delivery model. As large enterprises seek realizable ROI on their technology spending, they are more frequently exploring offshore solutions." he said.

Additionally, as cost containment moves to the forefront, we’ve seen increased interest in application management services. As a result of this shift in demand, revenues from application management accounted to 50 per cent of the total revenue, and now accounts for a large portion of our opportunity pipeline, he added.

"We entered 2001 with a number of new blue chip clients and continue to build upon these relationships. With our track record of expanding existing client relationships, and our continual investment in R&D spending and sales and marketing, we remain confident in our ability to navigate through the IT slowdown and continue our strong financial performance," he said.