Cognizant Announces Third Quarter 2014 Results
Third quarter revenue up 2.5% sequentially and 11.9% year-over-year; Raises guidance for 2014 revenue and non-GAAP EPS
Teaneck, New Jersey, November 5, 2014 – Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of information technology, consulting, and business process outsourcing services, today announced its third quarter 2014 financial results.
Highlights – Third Quarter 2014
- Third quarter revenue of $2.58 billion was up 11.9% from the year-ago period and up 2.5% sequentially.
- GAAP diluted EPS was $0.58, up from $0.53 in the year-ago period.
- Non-GAAP diluted EPS was $0.66, up from $0.59 in the year-ago period.
- Net headcount addition for the quarter was approximately 12,300.
Revenue for the third quarter of 2014 rose to $2.58 billion, up 11.9% from $2.31 billion in the third quarter of 2013. GAAP net income was $355.6 million, or $0.58 per diluted share, compared to $319.6 million, or $0.53 per diluted share, in the third quarter of 2013. Non-GAAP diluted earnings per share was $0.66 compared to $0.59 in the third quarter of 2013. GAAP operating margin for the quarter was 17.7%. Non-GAAP operating margin was 19.5%, within 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.
"There is a tremendous opportunity in the marketplace as the advent of new digital technologies, global economic pressures, and an evolving regulatory environment force businesses across all industries to change and adapt faster than ever before," said Francisco D'Souza, Chief Executive Officer of Cognizant. "Cognizant is ideally positioned to help clients worldwide address these competitive challenges with end-to-end solutions that address their dual mandate of improved efficiency and of innovation using the latest social, mobile, analytics, cloud and sensor technologies."
"Our overall demand environment remains strong and our results this quarter highlight that we are competing, winning and executing transformational engagements for clients in various industry segments globally," said Gordon Coburn, President. "Clients are turning to Cognizant in increasing numbers to help them simplify, optimize and automate their operations, whether it is through new utility delivery models or integrated end-to-end solutions. Today's connected world requires digital solutions to be brought to market in an accelerated manner. Our consultative approach and our business process and other expertise enable us to deliver solutions with faster time to value."
2014 Outlook – Fourth Quarter and Full Year
The Company is providing the following guidance, excluding any impact from the acquisition of TriZetto:
- Fourth quarter revenue expected to be between $2.61 billion and $2.64 billion.
- Fourth quarter non-GAAP diluted EPS expected to be at least $0.63.
- Full-year revenue expected to be between $10.13 billion and $10.16 billion.
- Full-year non-GAAP diluted EPS expected to be at least $2.57.
"Revenue growth was slightly ahead of our revised forecast and, as expected, non-GAAP operating margins were within our target range of 19-20% as we absorbed the impact of annual wage increases during Q3," said Karen McLoughlin, Chief Financial Officer. "Our balance sheet remains strong as cash and short term investments increased during the quarter by almost $500 million to $4.6 billion. Later this quarter, we anticipate utilizing $1.7 billion of this cash, in addition to $1 billion of floating rate debt through a syndicated term loan, to fund the previously announced acquisition of TriZetto."
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 75 delivery centers en ongeveer 199.700 werknemers (per 30 september, 2014). 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 best presterende 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 including, but not limited to, our expectations regarding opportunities in the marketplace, and our anticipated use of $1.7 billion of cash and $1 billion of debt to fund the acquisition of TriZetto,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, the risk that we may not be able to close the acquisition of TriZetto, and the factors discussed in our most recent Quarterly Report on Form 10-Q 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.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with GAAP, this press release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: non-GAAP operating margin and non-GAAP diluted earnings per share ("non-GAAP diluted EPS"). These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of Cognizant's GAAP financial measures to the corresponding non-GAAP measures should be carefully evaluated. With respect to our expectations in the "2014 Outlook – Fourth Quarter and Full Year" section above, reconciliation of non-GAAP diluted EPS guidance to GAAP diluted EPS cannot be provided without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to net non-operating foreign currency exchange gains or losses which are excluded from the non-GAAP diluted EPS.
Voor meer persinformatie kunt u contact opnemen met:
OCTANE PR
Tel: +31 (0)40 266 1130
E-mail:
cognizantnl@octanepr.com