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Cognizant Technology Solutions has reported a net profit of $240 million for the fourth quarter ended December 2011. This is a 16.4 per cent increase over $206 million reported in the corresponding quarter of last year and 5.7 per cent increased sequentially.
Quarterly revenue for the US-based software company with large development centres in India rose to $1.66 billion, up 27 per cent from the year-ago quarter and 3.9 per cent sequentially, said a company release.
FULL-YEAR NET UP
For the full year 2011, net profit increased by 21 per cent to $884 million ($733 million) on revenue of $6.12 billion, up 33.3 per cent from the previous year. Net employee addition for the year exceeded 33,700.
“We are very pleased, once again, to deliver industry leading revenue growth in 2011 while maintaining stable margins and investing for our long-term success,” said Mr Francisco D’Souza, CEO of Cognizant.
The company has provided the following guidance:
● First quarter 2012 revenue anticipated to be at least $1.70 billion, guiding to a 2.2 per cent sequential growth.
● Full year 2012 revenue expected to be at least $7.53 billion, up at least 23 per cent compared to 2011, said a company release.
“2011 was an excellent year for us,” said Mr Gordon Coburn, President of Cognizant.
Broad-based revenue growth of 33 per cent and net staffing addition of 33,700 are testaments to the company’s ability to scale and expand operations globally, he said.
During 2012, Cognizant is likely to spend $370 million on capital expenditure with most of this spending expected to be in India.
It spent $124.6 million for capital expenditures during the fourth quarter. Its fullyear capital expenditures for 2011 were $288 million, slightly above the original expectations for $285 million,
Mr Coburn told analysts while discussing the financial results.
CUSTOMER BASE
Cognizant closed the quarter with 785 active customers - and the number of accounts that it consider to be strategic increased by six. This brings its total number of strategic clients to 191. “We continue to see a trend towards our newer strategic customers embracing a wider range of Cognizant’s services at an earlier stage in the relationship,” he said.
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