Cognizant Reports Fourth Quarter and Full Year 2009 Results

Post date: 09-Feb-2010 12:49:13

Cognizant Reports Fourth Quarter and Full Year 2009 Results

Annual Revenue of $3.279 billion, up 16% year-over-year

Provides Guidance for 2010 Revenue Growth of at least 20%

TEANECK, N.J., February 9, 2010 – Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of information technology, consulting, and business process outsourcing services, today announced its fourth quarter and full year 2009 financial results.

Highlights – Fourth Quarter 2009

• Quarterly revenue rose to $902.7 million, up 20% from the year-ago quarter and 6% sequentially.

• Quarterly diluted EPS on a GAAP basis was $0.47, compared to $0.38 in the year-ago quarter.

• Quarterly diluted EPS on a non-GAAP basis, which excludes stock-based compensation expense, was $0.50, compared to $0.41 in the year-ago quarter.

• GAAP and non-GAAP diluted EPS includes the impact of $0.01 in net non-operating foreign currency exchange losses.

• Net headcount additions for the quarter exceeded 10,300; year-end headcount approximately 78,400.

Revenue for the fourth quarter of 2009 rose to $902.7 million, up 20% from $753.0 million in the fourth quarter of 2008. GAAP net income was $144.0 million, or $0.47 per diluted share, compared to $112.3 million, or $0.38 per diluted share, in the fourth quarter of 2008. Diluted earnings per share on a non-GAAP basis was $0.50. GAAP operating margin for the quarter was 18.5%. Excluding stock-based compensation expense of $12.8 million, non-GAAP operating margin was 19.9%, in line with the Company’s targeted 19 to 20% range. Earnings for the quarter included $4.5 million of net pre-tax non-operating foreign exchange losses. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

"Despite a very difficult economy, Cognizant delivered strong results with 16% annual revenue growth. The investments we made in our business leave us in an even stronger position than when we entered 2009,” said Francisco D’Souza, President and CEO of Cognizant. "During the year, we grew our workforce by more than 16,700 people, improved our employee utilization, strengthened our client partnerships, and brought new services and capabilities to market. We believe Cognizant is set to deliver robust performance in 2010 and will continue to set new standards for our industry."

Highlights – Full Year 2009

• Revenue increased to $3.279 billion, up 16% from the previous year.

• Diluted EPS on a GAAP basis was $1.78, compared to $1.44 in the previous year.

• Diluted EPS on a non-GAAP basis, which excludes $0.12 in stock-based compensation expense and stock-based Indian fringe benefit tax expenses, was $1.90, compared to $1.59 in the previous year.

Revenue for 2009 increased to $3.279 billion, up 16% from $2.816 billion for 2008. GAAP net income was $535.0 million, or $1.78 per diluted share, compared to $430.8 million, or $1.44 per diluted share, for 2008. Diluted earnings per share on a non-GAAP basis was $1.90. GAAP operating margin was 18.9%. Excluding stock-based compensation expense of $44.8 million and stock-based Indian fringe benefit tax expense of $0.9 million, non-GAAP operating margin was 20.3%. Reconciliations of these non-GAAP financial measures to GAAP operating results and diluted EPS are included in the table at the end of this release.