Information technology outsourcing provider Cognizant has reported total sales of $558.8m for the third quarter ended September 30, 2007, an increase of 48% compared to $377.5m for the prior year period.
Quarterly diluted EPS was $0.32 compared to $0.20 in the year-ago quarter. The results include a one-time tax benefit of $2.8m and a pre-tax foreign exchange gain of $2.6m.
Revenue for the nine months ended September 30, 2007 was $1.54 billion, an increase of 54% compared to $999.8m for the same period in 2006. The operating profit was $275.4m compared to $182.6m in the previous year. The net profit was $253.9m compared to $163.3m for the same period in 2006.
This is particularly evident in the growth of our European business, where revenue grew over 90% year-over year, and rose 24% sequentially to account for 17% of total revenue for the third quarter. said Francisco D’Souza, president and chief executive at Cognizant.
Revenue for the second quarter ended June 2007 was $516.5m, while the operating and net profit were $90.7m and $82.3m, respectively.
Based on the performance of the two previous quarters, Cognizant expects its fourth quarter revenue to be between $590m and $595m. The company has increased its previous year-on-year growth forecast for fiscal year 2007 revenue from 48% to 49%, to reach between $2.125 billion and $2.13 billion. The company total headcount by end of 2007 expected to be stable at approximately 55,000.
Cognizant’s competitor, EDS has shown an increase of 6% in its revenues for third quarter, which ended on September 30, 2007. It reported revenues of $5.63 billion compared with $5.29 billion last year. Net income for the third quarter was $225m compared to $128m last year.
Source: ComputerWire daily updates