Cognizant Q1 net up 18%

The company's net income rose to $284.2 million in the same period from $243.7 mn from the year ago period, owing to rising demand in Europe

Cognizant has reported a 18.1% growth in revenue during the first quarter at $2.02 billion as compared to $1.71 billion during the same quarter of 2012. The company has reaffirmed full year guidance of 17%, which is higher than NASSCOM's estimation for the overall industry growth of 12-14% and higher than Infosys guidance of 6-10%.

The company's net income rose to $284.2 million in the first quarter from $243.7 million, a year earlier, thanks to the rising demand in Europe.

For the second quarter Cognizant has guided a revenue of $2.13 billion.

"Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services," commented Francisco D'Souza, Chief Executive Officer.

He added, the company continues to make solid progress developing emerging offerings in new markets, new SMAC technologies, and new non-linear solutions and services and he was particularly pleased with the recent launch of our portfolio of Cognizant BusinessCloudSM solutions that enable clients to quickly deploy a range of business and best-in-class IT solutions and to forgo costly capital outlays and lengthy implementation timelines.

On the outlook the for fiscal 2013 the company expects revenue to be at least $8.60 billion, an increase of around 17% compared to 2012.

"Our financial model continues to allow us to deliver solid top-line growth with stable margins, while investing in our next generation of services to spur long-term strength," said Karen McLoughlin, Chief Financial Officer.

"In addition, we have repurchased $74 million worth of shares year-to-date under our stock repurchase program and, as announced today, have expanded the program to $1.5 billion, reflecting our ability to generate strong cash flows, confidence in our business, and our commitment to drive shareholder value."