Nasdaq-listed Cognizant Technology Solutions Corporation has reported that its revenue for the fourth quarter ended December 2009 rose to $902.7 million, up 20 per cent from $753.0 million in the fourth quarter of 2008. GAAP(generally accepted accounting principle) net income is placed at $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. The diluted earning per share on a non-GAAP basis was $0.50.
GAAP operating margin for the quarter is 18.5 per cent. Excluding stock-based compensation expense of $12.8 million, the non-GAAP operating margin is 19.9 per cent. According to a release, this is in line with the company’s targeted 19 to 20 per cent range. Earnings for the quarter include $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.
Cognizant has also reported that its revenue for 2009 increased to $3.279 billion, up 16 per cent from $2.816 billion for 2008. GAAP net income is $535.0 million, or $1.78 per diluted share, compared to $430.8 million, or $1.44 per diluted share, for 2008. The diluted earning per share on a non-GAAP basis is $1.90. GAAP operating margin is 18.9 per cent. Excluding stock-based compensation expense of $44.8 million and stock-based Indian fringe benefit tax expense of $0.9 million, the non-GAAP operating margin is 20.3 per cent.
“Despite a very difficult economy, Cognizant delivered strong results with 16 per cent annual revenue growth. The investments we made in our business leave us in an even stronger position than when we entered 2009,” the release quotes Francisco D’Souza, President and CEO, as saying. During the year, the company grew its workforce by more than 16,700 people.
The company has indicated that the revenue for the first quarter could be in the vicinity of $935 million. For the fiscal 2010, the revenue guidance is placed at around $3.935 billion.