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Cognizant's record Q1 results

By Our Staff Reporter

CHENNAI APRIL 22. Cognizant Technology Solutions Corporation's first quarter revenue has increased to $ 74.5 million, up 60 per cent from $46.5 million in the first quarter of 2002. On a GAAP basis, net income for the first quarter was $ 10.2 million, or $ 0.15 per diluted share. The operating margin for the quarter was 19.5 per cent, compared to 19.7 per cent in the first quarter of 2002.

Addressing presspersons here today, N. Lakshminarayanan, President and Chief Operating Officer of Cognizant Technology Solutions India, said the application management, which represented 62 per cent of revenue, grew by 17 per cent sequentially. The application development and integration accounting for 38 per cent of the business, rose by 3 per cent. Mr. Lakshminarayan said during the quarter nearly 89 per cent of revenue came from clients in North America. The company had added 10 new customers during the first quarter and its active customer base increased to 107. At the end of the first quarter, its worldwide head count was around 6,500 representing a net increase of about 300 people. The company would increase its head count to 7,700 to 8,000 by the end the current year.

The Chief of the Indian operations said that the Cognizant had closed on the acquisition of ACES, a company specialising in CRM solutions, with a strong track record of serving bluechip clients in healthcare, financial services and telecommunications verticals. The company saw a strong demand for CRM services from clients in these verticals. Mr. Lakshminarayan was hopeful that the acquisition would substantially strengthen the company's ability to win new business.

He said Cognizant was comfortable with its ability to deliver revenue in the second quarter of at least $ 82 million. This included at least $80 million from its core business and an estimated $2 million from its recent ACES acquisition.

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