Cognizant Tech revenue up 53%

CHENNAI: IT services provider Cognizant Technology Solutions Corp today announced its financial results for the second quarter ended June 30, 2005.

Revenue for the second quarter increased to $211.7 million, up 53 percent from $138.7 million in the second quarter of 2004. Net income for the second quarter increased to $36.0 million, or $0.25 per diluted share compared to $23.8 million or $0.17 per diluted share in the second quarter of 2004. Operating margin for the quarter was 20.0 percent, in line with the 20.0 percent operating margin achieved in the second quarter of 2004.

Commenting on the results, Lakshmi Narayanan, president and CEO of Cognizant said, “second quarter performance was driven by growing demand for our deep industry knowledge and expertise across our entire range of verticals, including financial services, retail and manfacturing, telecommunications, and healthcare.”

During the second quarter, Cognizant signed one of the largest pharmaceutical companies in the world as a new strategic client. The company was also providing business-aligned IT solutions to five global pharmaceutical companies.

The company's outlook for Q3 is: anticipated revenue $232 million, expected diluted EPS of $0.26, fiscal 2005 revenue anticipated to be $876 million, fiscal 2005 diluted EPS of approximately $1.01 and total headcount by end of Fiscal 2005 expected to exceed 23,000.