Cognizant revenue up 16 percent in 2014

Global software firm Cognizant Technology Solutions Corporation, promoted by NRIs in the US, Wednesday reported $10.3 billion revenue in calendar year 2014, posting 16 percent annual growth.

The New Jersey-based IT major projected 19 percent revenue growth for this year (2015) to $12.21 billion and $2.88 billion in first quarter (January-March).

"Despite current exchange rates which will negatively impact 2015 revenue growth by two percent compared to 2014 exchange rates, we are providing 2015 guidance of 19 percent compared to 2014," Cognizant chief financial officer Karen McLoughlin said in a statement.

Revenue for the fourth quarter (October-December) rose 16.4 percent year-on-year (YoY) to $2.74 billion, which is up 6.2 percent sequentially.

Revenue for last quarter (Q4) includes $80.6 million from the US-based TriZetoo healthcare IT services provider, which the company acquired for $2.8 billion in September 2014.

Net income for 2014 was $1.44 billion as against $1.23 billion in 2013 and 11.9 percent up in fourth quarter to $363 million.

"In spite of unfavourable European currency movements during the quarter (Q4), we finished 2014 with strong revenue performance and believe we are well positioned to continue the momentum into 2015 on the strength of our integrated consulting, technology, digital and business services capabilities," Cognizant chief executive Francisco D'Souza said.

The company added 11,800 techies during the quarter (Q4) under review, taking its headcount to 211,500 by the year-end.

"Business leaders globally are facing compressed innovation cycles and are challenged with the dual mandate of simultaneously achieving efficiency and innovation. They are turning to us as partner to help them re-imagine their businesses for the digital era," D'Souza asserted.

Recalling that 2014 was a significant year, Cognizant president Gordon Coburn said the company was in a unique position in the market to address a range of opportunities fuelled by digital transformations across industry segments, service lines and geographies.

"The year under review (2014) was significant for us. Integration of TriZetto is underway and we see exciting healthcare opportunities this year. We crossed the 200,000-employee mark by recruiting top talent from the world over," Coburn added.