Cognizant revenues shoot up

CHENNAI:



Cognizant Technology Solutions Corporation posted net income of $61.0

million on a non-GAAP basis, up 69.4 per cent from $36.0 million from its

year-ago quarter.






Revenue was $336.8 million, up 59 per cent from its year-ago-quarter, and up 18
percent sequentially in Q1 2006. Quarterly diluted EPS on a non-GAAP basis,

excluding the impact of stock-based compensation expense, was $0.41, compared to

$0.25 in the year-ago quarter.






Non-GAAP operating margin was 20.0 per cent, at the high end of the company's
targeted 19-20 per cent range. “We are very pleased with our strong second

quarter results, driven by significant revenue growth across an expanding range

of industries, service-offerings and geographies,” said

Lakshmi Narayanan, president and CEO of

Cognizant.






Based on current visibility, the Company is anticipated to get at least $363
million revenues for the next quarter. Fiscal 2006 revenue now anticipated to be

at least $1.37 billion. Total headcount by end of 2006 expected to exceed

36,000.






Also the company announced a management succession plan intended to support the
Company through the next phase of its growth. Under the plan, which will become

effective January 1, 2007, current President and CEO

Lakshmi Narayanan

will become Vice Chairman of the Board of Directors and current Chief

Operating Officer Francisco D'Souza will succeed him as President and CEO and

will become a member of the Board of Directors. In addition, Gordon Coburn,

currently Chief Financial Officer, will be promoted to Chief Financial and

Operating Officer.






Cognizant also announced two additional appointments, effective immediately.
Chandra Sekaran, an executive officer of the company since 2004, has been

promoted to President and Managing Director, Global Delivery and will oversee



Cognizant's development operations around the world. Rajeev Mehta, who has

been promoted to Chief Operating Officer, Global Client Services and added to

the executive team, will assume responsibility for the Company's sales, business

development and client relationship management organizations. Sekaran and Mehta

will report to D'Souza.






“I am proud to have served as President and CEO and to have been part of
Cognizant's leadership team since the company's founding in 1994,” said Lakshmi

Narayanan, President and CEO, Cognizant. “During this time, we have achieved

major milestones in our history, firmly placing Cognizant in the top tier of

companies in the offshore IT services industry. I believe we have the platform

in place to drive the company's future growth and enable me to step down from my

day-to-day management responsibilities and focus my time on pursuing industry

thought leadership roles on behalf of Cognizant.”






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