Cognizant Q2 net up 22 pc at USD 172.2 mn; ups 2010 outlook
Buoyed by the revival in demand for IT services, Cognizant Technology today posted its highest-ever growth of 22 per cent in net profit to USD 172.2 million for the second quarter ended June 30, 2010.business Updated: Aug 03, 2010 21:43 IST
Buoyed by the revival in demand for IT services, Cognizant Technology on Tuesday posted its highest-ever growth of 22 per cent in net profit to USD 172.2 million for the second quarter ended June 30, 2010.
The company's net profit in 2009 stood at USD 141.3 million, Nasdaq-listed Cognizant said in a statement.
"We benefited from a surge in the initiation of discretionary projects over the past several months -- in part due to pent-up demand created by the deferment of discretionary spending last year," Cognizant CFO Gordon Coburn said.
For the full year, Cognizant expects revenue to grow by 36 per cent to USD 4.46 billion.
Cognizant, which witnessed robust spending from clients across business segments and geographies, has projected a revenue of USD 1.17 billion for the third quarter.
"Second quarter results further substantiate the... continued importance of investing in deep industry expertise, expanded geographic reach and emerging technologies," Cognizant President and CEO Francisco D'Souza said.
In the April-June period, the company's revenue rose to USD 1.1 billion from USD 776.6 million in the second quarter of 2009, translating into a growth of 42 per cent.
The company added 3,200 personnel to its workforce during the quarter, taking its headcount to 88,700 employees globally.
The company finished the quarter with USD 1.65 billion of cash and investments.
"For 2010, we expect to spend about USD 180 million on capital expenditures, the substantial majority of which will support another facility expansion as we finish absorbing our last wave of construction," D'Souza said.
During the quarter, clients in North America contributed 78.6 per cent to the company's revenue and Europe 18.1 per cent, while 3.3 per cent of revenue came from the Asia-Pacific, Middle Eastern and Latin American markets.
European revenue was down by USD 8.7 million compared to the first quarter due to the weakening of European currencies during the period.
The company made a gross addition of 116 new customers during the second quarter.