Cognizant Q3 net up 49 pc at $203 mn; ups FY'11 outlook

NEW YORK: Business process outsourcing firm Cognizant Technology Solutions Corporation on Monday reported a 49 per cent growth in net income to $203.7 million for the third quarter ended September 30, 2010, on the back of good order book.

The company had a net income of $136.6 million in the July-September quarter of 2009, Cognizant said in a statement.

"Yet another strong quarter is continuing evidence that clients are not just seeking cost efficiencies, but are also stepping up investments in their business platforms and new capabilities to drive growth and innovation," Cognizant President and CEO Francisco D'Souza said.

Looking ahead, the company expects a revenue of $1.27 billion in the fourth quarter 2010, and for the full year, the BPO firm wishes to earn a revenue of $4.55 billion, up 38.8 per cent compared to 2009.

"The success of our long-time reinvestment strategy positions us as a credible advisor to our clients, as we work with them to address the critical issues facing their businesses," D'Souza added.

The company's revenue rose to $1.21 billion in the third quarter under review from $853.5 million in the third quarter of 2009. Thus registering a gain of 43 per cent.

"We are pleased to have delivered two consecutive quarters of double-digit sequential revenue growth. Importantly, our growth was once again broad-based -- across industries, service lines and geographies," Cognizant Chief Financial and Operating Officer Gordon Coburn said.

As on September 30, the cash and cash equivalents of the company stood at $1.31 billion.