Cognizant Q2 net up 22%; Q3 outlook strong

Global information technology firm Cognizant Technology today reported its highest-ever growth in net profit by 22 per cent to $172.2 million for the second quarter ended June 30, 2010, on account of business expansion across geographies.

The company had posted a net profit of $141.3 million in the same period last year, Nasdaq-listed Cognizant Technology Solutions Corporation said in a statement.

"Second quarter results further substantiate the strength of the Cognizant model and the continued importance of investing in deep industry expertise, expanded geographic reach and emerging technologies," Cognizant President and CEO Francisco D'Souza said.

In the April-June period, the company's revenue rose to $1.1 billion from $776.6 million in the second quarter of 2009, translating into a growth of 42 per cent.

Looking ahead, the company said it is expecting a revenue of $1.17 billion in the third quarter.

For the entire 2010 fiscal, it has projected a revenue of at least $4.46 billion, up 36 per cent compared to 2009.

"During the quarter, spending levels were very strong across clients in all our business segments and geographies. We saw particular strength in our financial services segment, which had previously been hard hit by the global credit crisis," D'Souza added.