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May 8, 2013
Cognizant Announces Record First Quarter 2013 Results
First quarter revenue up 3.7% sequentially and 18.1% year-over-year
Reaffirms full-year revenue guidance of at least 17% growth
Expands stock repurchase program by $500 million to $1.5 billion
Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of information technology, consulting, and business process outsourcing services, today announced its first quarter 2013 financial results.
Highlights – First Quarter 2013
- Quarterly revenue rose to $2.02 billion, up 18.1% from the year-ago quarter and 3.7% sequentially.
- Quarterly diluted EPS on a GAAP basis was $0.93, compared to $0.79 in the year-ago quarter.
- Quarterly diluted EPS on a non-GAAP basis was $1.02, compared to $0.88 in the year-ago quarter.*
- Net headcount addition for the quarter was approximately 6,000.
*As previously announced, starting in 2013, reported non-GAAP financial measures exclude acquisition-related charges, in addition to stock-based compensation expense. 2012 non-GAAP measures have been adjusted to reflect this change.
Revenue for the first quarter of 2013 rose to $2.02 billion, up 18.1% from $1.71 billion in the first quarter of 2012. GAAP net income was $284.2 million, or $0.93 per diluted share, compared to $243.7 million, or $0.79 per diluted share, in the first quarter of 2012. Diluted earnings per share on a non-GAAP basis was $1.02. GAAP operating margin for the quarter was 18.1%. The non-GAAP operating margin was 19.9%, at the high end of the Company's target range of 19-20%. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.
"Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services," said Francisco D'Souza, Chief Executive Officer. "We continue to make solid progress developing emerging offerings in new markets, new SMAC technologies, and new non-linear solutions and services. I'm particularly pleased with the recent launch of our portfolio of Cognizant BusinessCloudSM solutions that enable clients to quickly deploy a range of business and best-in-class IT solutions and to forgo costly capital outlays and lengthy implementation timelines."
"Our long-term re-investment in our business and the strength and depth of our client relationships give us the confidence to deliver continued industry-leading revenue growth," said Gordon Coburn, President. "We are well positioned to help clients run better by driving greater efficiency and effectiveness, while simultaneously helping them to run different by innovating and transforming their businesses for the future."
2013 Outlook – Second Quarter and Full Year
The Company is providing the following guidance:
- Second quarter 2013 revenue anticipated to be at least $2.13 billion.
- Second quarter 2013 diluted EPS expected to be $0.97 on a GAAP basis and $1.06 on a non-GAAP basis.
- Fiscal 2013 revenue expected to be at least $8.60 billion, up at least 17% compared to 2012.
- Fiscal 2013 diluted EPS expected to be at least $3.95 on a GAAP basis, and $4.31 on a non-GAAP basis.
- EPS guidance excludes any future non-operating foreign currency exchange gain or loss.
"Our financial model continues to allow us to deliver solid top-line growth with stable margins, while investing in our next generation of services to spur long-term strength," said Karen McLoughlin, Chief Financial Officer. "In addition, we have repurchased $74 million worth of shares year-to-date under our stock repurchase program and, as announced today, have expanded the program to $1.5 billion, reflecting our ability to generate strong cash flows, confidence in our business, and our commitment to drive shareholder value."
Expansion of Stock Repurchase Program
The Company also announced that its Board of Directors approved an expansion of its stock repurchase program. The Board of Directors increased the stock repurchase program by $500 million, from $1 billion to $1.5 billion, and extended the term of the program to December 31, 2014. To date, the Company has repurchased $940 million of its shares under this program. The Company is authorized to repurchase shares under the program through open market purchases, including under a trading plan adopted pursuant to Rule 10b5-1, or through privately negotiated transactions, in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares to be purchased will be determined by the Company's management, in its discretion, or pursuant to a Rule 10b5-1 trading plan, and will depend upon market conditions and other factors. The repurchases will be funded using the Company's cash on hand and cash generated from operations. The program may be extended, suspended or discontinued at any time.
Over Cognizant
Cognizant (NASDAQ: CTSH) is een vooraanstaande dienstverlener in informatietechnologie, consultancy en business process outsourcing-services. Cognizant werkt in nauw partnerschap met ’s werelds grootste organisaties om hun concurrentiepositie te versterken. Het hoofdkantoor is gevestigd in Teaneck, New Jersey (Verenigde Staten). Cognizant combineert een passie voor klanttevredenheid, technologische innovatie en diepgaande industrie- en bedrijfsproceskennis met een wereldwijd samenwerkend personeelsbestand. Cognizant heeft wereldwijd meer dan 50 delivery centers en ongeveer 162.700 werknemers (per 31 maart, 2013). Cognizant heeft een NASDAQ-100 en S&P 500-notering en is verder genoteerd in de Forbes Global 2000 en Fortune 500. De organisatie behoort hiermee tot de bestpresterende en snelstgroeiende bedrijven in de wereld. Bezoek onze website www.cognizant.com of volg ons via Twitter: @Cognizant.
Forward-Looking Statements
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
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