New Jersey: IT consultancy and global BPO firm Cognizant has defied the bleak macroeconomic background, delivering record results for its second quarter of 2012.
- Revenue up 4.9% sequentially and 20.9% from the same quarter a year ago
- Pre-tax profit up 20.9% to $335m
- Reaffirms full year guidance, but lifts profit forecast
- Net headcount addition for the quarter was approximately 4,700
Pre-tax profit rose 20.9% to $335 million in the second quarter to June 30 2012 on revenue up 20.9% to $1.795 billion.
After six months of 2012 pre-tax profit is up 17.7% at $657 million on revenue up 22.7% at $3.506 billion.
"Clients continue to turn to Cognizant to help reinvent their business models in the face of secular industry changes, evolving demographics, and a new stack of social, mobile, analytics, and cloud technologies," said Francisco D'Souza, Chief Executive Officer.
"We are well positioned to capitalize on these opportunities due to our unique combination of management consulting and operational capabilities in areas such as large scale program management and change management. With our robust global delivery model, we make the complexities of managing large scale transformation programs seamless and transparent to our clients."
"Cognizant once again delivered industry leading growth despite a challenging macro-economic environment," said Gordon Coburn, President.
"This market downturn, as with those before, is serving as a catalyst for clients to embrace a broader range of our services. Clients view us as a strong partner to achieve operational improvements in efficiency and effectiveness while simultaneously innovating for the future."
2012 Outlook — Third Quarter and Full Year
The Company is providing the following guidance:
- Third quarter 2012 revenue anticipated to be at least $1.875 billion.
- Fiscal 2012 revenue expected to be at least $7.34 billion, up at least 20% compared to 2011.
"We are pleased to maintain our full-year revenue guidance as we continue to execute as we expected," said Karen McLoughlin, Chief Financial Officer.
"Our reaffirmed full-year revenue guidance includes absorbing more than $20 million of negative currency impacts during quarters two through four as a result of currency movements since we last provided guidance in early May. In addition, we repurchased over $358 million of shares during the second quarter, reflecting our strong cash flow and confidence in the strength of our business."