Cognizant Q4 revenue up by 17%

NASDAQ-listed Cognizant Technology Solutions Corporation has reported a 17.1% growth in revenue during the quarter ended December 31, 2013 at $1.95 billion from the year-ago which was $1.66 billion. The guidance of 17% growth in 2013 is in line with earlier estimate.

GAAP net income was $278.8 million, or $0.92 per diluted share, compared to $240.1 million, or $0.78 per diluted share, in the fourth quarter of 2011.

“We are pleased to once again deliver industry-leading revenue growth in 2012,” said Francisco D’Souza, Chief Executive Officer of Cognizant.

He added, as we look to 2013, it is clear that secular industry shifts, new technology architectures, virtual business models and changing demographics are forcing clients to re-examine how they operate. Increasingly, clients are finding incremental levels of performance inadequate and are challenging the status quo to find ways to maintain their market leadership.”

When confronting their business challenges, clients not only look to Cognizant to help them run their operations better, but increasingly turn to us to help them run their operations differently in order to differentiate themselves in the market and drive topline growth, commented Gordon Coburn, President of Cognizant.

The Company has provided first quarter 2013 revenue anticipated to be at least $2.0 billion and Full year 2013 revenue expected to be at least $8.60 billion, up at least 17% compared to 2012. This guidance includes anticipated acquisition revenue of $90 million.

“Generating broad-based, industry leading growth of 20% within a tough demand environment of 2012 is a testament to the strength of our business model,” said Karen McLoughlin, Chief Financial Officer.

Furthermore, 2012 was a strong year of cash generation. Our cash and short-term investments balances grew by $430 million during the year, after covering over $480 million of share repurchases, he said.