Cognizant Q3 net up 11.2%; raises 2014 revenue forecast

Written By Unknown on Rabu, 05 November 2014 | 21.43

NEW YORK: IT services major Cognizant Technology Solutions Corporation said its net profit has grown 11.2% to $355.6 million for the quarter ended September 30, 2014, on the back of growth in financial services and emerging countries.

This is against a net profit of $319.6 million in the corresponding quarter last year, Cognizant said in a statement.

The US-based firm saw its revenues rising 12% to $2.58 billion in the quarter under review from $2.3 billion in the same period last year.

Cognizant expects its revenues in the October-December 2014 quarter to be between $2.61 billion and $2.64 billion.

The firm has also revised its revenues forecast for the year to be between $10.13 billion and $10.16 billion (higher by 14.5-14.9%), excluding any impact from the acquisition of TriZetto.

While announcing its first quarter results, Cognizant had forecast its 2014 revenue to be at least $10.3 billion, higher by 16.5% from 2013. However, at the end of June quarter, it lowered its outlook to at least 14%.

In fiscal 2013, Cognizant's revenue stood at USD 8.843 billion, up 20.4 per cent from 2012.

"Our overall demand environment remains strong and our results this quarter highlight that we are competing, winning and executing transformational engagements for clients in various industry segments globally," Cognizant President Gordon Coburn said.

Cognizant added about 12,300 people during the quarter. "There is a tremendous opportunity in the marketplace as the advent of new digital technologies, global economic pressures, and an evolving regulatory environment force businesses across all industries to change and adapt faster than ever before," Cognizant chief executive officer Francisco D'Souza said.

Cognizant is ideally positioned to help clients worldwide address these competitive challenges with end-to-end solutions that address their dual mandate of improved efficiency and of innovation using the latest social, mobile, analytics, cloud and sensor technologies, he added.

"Our balance sheet remains strong as cash and short-term investments increased during the quarter by almost $500 million to $4.6 billion," Cognizant chief financial officer Karen McLoughlin said.

Later this quarter, Cognizant anticipates utilising $1.7 billion of this cash, in addition to $1 billion of floating rate debt through a syndicated term loan, to fund the previously announced acquisition of TriZetto, McLoughlin added.

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