Cognizant records 18.1 % Y-o-Y Revenue Growth in Q1 2013

Cognizant Technology Solutions has declared its first quarter 2013 financial results. As per the results, the revenue received in the first quarter of 2013 went up by 18.1% to $2.02 billion from $1.71 billion in the first quarter of 2012.

The GAAP net income was $284.2 million, or $0.93 per diluted share, against $243.7 million, or $0.79 per diluted share, in the first quarter of 2012. Diluted earnings per share on a non-GAAP basis were $1.02. GAAP operating margin for the quarter was 18.1% compared to $0.88 in the year-ago quarter. The non-GAAP operating margin was 19.9%, at the high end of the Company’s target range of 19–20%.

Francisco D’Souza, CEO, Cognizant Technology Solutions, said, “Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services. We continue to make solid progress developing emerging offerings in new markets, new SMAC technologies, and new non-linear solutions and services. I am particularly pleased with the recent launch of our portfolio of Cognizant Business Cloud 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.”

Karen McLoughlin, CFO, Cognizant Technology Solutions, said, “In addition, we have repurchased $74 million worth of shares year-to-date under our stock repurchase programme reflecting our ability to generate strong cash flows, confidence in our business, and our commitment to drive shareholder value."

The company also announced that its Board of Directors increased the stock repurchase programme by $500 million, from $1 billion to $1.5 billion. Net headcount addition for the quarter was approximately 6,000.