Cognizant net profit up 19 per cent in Q2

Cognizant Technology Solutions Corporation has reported a net profit of $300 million for the second quarter ended 30 June 2013, a 19 per cent increase from its second quarter 2012 profit of $252 million.

Operating margin for the quarter was 19.7 per cent.

Basic earnings per share for the quarter stood at $1.00 against $0.83 paid in the similar quarter of the previous year.

Revenue for the April-June 2013 quarter rose to $2.161 billion, up 20.4 per cent from $1.795 billion in the second quarter of 2012.

The addition of $141 million in sequential revenue was the second highest incremental revenue addition in Cognizant's history, the company stated in a press release.

The US-based information technology, consulting and business process outsourcing services company reported net employee addition of approximately 1,600 for the quarter.

''As we celebrate the 15th anniversary of our public listing on the Nasdaq stock exchange, we are delighted to yet again deliver industry-leading revenue growth,'' said Francisco D'Souza, chief executive officer. ''Our 15-year record of revenue and earnings growth is a testament to our long-term strategy of reinvesting in our business to stay relevant to our clients' changing needs and to provide increasing value as we grow each of those trusted relationships,'' he said in a press release.

"Economic pressures and long-term secular industry shifts have been driving fundamental changes in client demands," said Gordon Coburn, president.

The company anticipates third quarter 2013 revenue to be at least $2.25 billion and diluted EPS of $1.00.

For the full fiscal 2013, Cognizant expects revenue to be at least $8.74 billion, up at least 19 per cent compared to 2012. EPS is expected to be at least $3.96 on a GAAP basis.

EPS guidance excludes any future net non-operating foreign exchange gain or loss, the company said. 

"Continued healthy demand in the second quarter resulted in broad-based growth across our industries, geographies and services, thereby driving significant revenue and EPS outperformance," said Karen McLoughlin, chief financial officer.

"Excluding the $0.07 of non-operating foreign exchange loss, which was not included in our guidance, we are pleased that we exceeded our non-GAAP EPS guidance for the quarter by $0.08. In addition, strong cash flows during the quarter allowed us to increase our cash and short-term investment balances to approximately $2.9 billion while repurchasing over $115 million of shares under our stock repurchase programme during the quarter," he added.