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> News
& Events > Press Releases > 2000 |
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Teaneck, NJ
- October 17, 2000 - Cognizant Technology
Solutions Corp. (Nasdaq: CTSH), a leading
e-business and application management
solutions provider, today announced financial
results for the third quarter ended September
30, 2000.
Revenue for the third quarter increased
to $37.1 million, up 62 percent from $22.9
million in the third quarter of 1999,
and up 17 percent from $31.8 million in
the second quarter of 2000. Revenue increased
82 percent excluding Y2K related revenue
from the prior year period. Net income
for the quarter ended September 30, 2000
increased 67 percent to $4.8 million,
as compared to $2.9 million in the 1999
third quarter. Diluted earnings per share
increased 60 percent to $0.24 from $0.15
in the year ago period.
"We experienced another quarter of strong
new customer adds and substantial expansion
in our existing accounts" said Kumar Mahadeva,
Chairman and Chief Executive Officer.
"We won 14 new clients, a direct result
of the substantial investments we have
made in sales and marketing over the last
two years."
Mahadeva added, "Cognizant's on-site/offshore
delivery capabilities and our deep technology
expertise easily lends itself to providing
the heavy lifting systems integration
capability large companies require for
the next generation of e-business. Further
validating our methodology, Cognizant
recently received SEI/CMM Level 5 certification,
and is one of only 13 commercial systems
integration companies in the world to
hold this distinction. This provides Cognizant
with an additional competitive advantage,
as brick-and-mortar companies seek quality
partners."
"This quarter marks our 16th consecutive
quarter of sequential revenue growth,"
stated Gordon Coburn, Chief Financial
Officer. "We continued to execute on all
fronts as our operating margin expanded,
DSOs remained strong at 50 days and we
generated over $10 million of cash from
operations in the quarter. Over 95 percent
of our revenue base continues to be attributable
to traditional companies establishing
a new economy presence."
Revenue for the nine months ended September
30, 2000 increased 48 percent to $96.0
million, from $64.8 million in the prior
year period. Net income increased 50 percent
to $12.3 million in the first nine months
of 2000 as compared to $8.2 million in
the prior year period. Diluted earnings
per share for the nine month period increased
45 percent to $0.61 from $0.42 in the
nine month period of 1999.
Conference Call
Cognizant Technology Solutions will host
a conference call today at 10:00 a.m.
(eastern) to discuss the Company's quarterly
results. To listen to the call please
dial 212-896-6040. The call will also
be broadcast live via the Internet at
Cognizant's web site, www.cognizant.com.
Please go to the web site at least fifteen
minutes prior to the call to register,
download and install any necessary audio
software.
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About Cognizant
Cognizant delivers high-quality, cost-effective,
full life-cycle solutions to complex software
development and management problems. Cognizant
employs more than 2,600 computer science
and engineering professionals globally
at its client sites and nine development
centers in India. The company specializes
in e-business and application management.
Cognizant has been assessed at SEI/CMM
Level 5 and is ISO 9001 certified. Based
on sustained revenue and earnings growth,
Forbes magazine named Cognizant the best
small company in America in its Nov. 1,
1999 listing of the "200 Best Small
Companies." For more information,
visit Cognizant on the Web at www.cognizant.com. |
| Certain statements
contained herein, including statements regarding
the development of the Company's services,
markets and future demand for the Company's
services, projections on future growth potential,
and other statements regarding matters that
are not historical facts, are forward-looking
statements (as defined in the Private Securities
Litigation Reform Act of 1995). Such forward-looking
statements include risks and uncertainties;
consequently, actual results may differ
materially from those expressed or implied
thereby. Factors that could cause actual
results to differ materially include, but
are not limited to, variability of quarterly
operating results, reliance on large projects,
concentration of revenue, ability to attract
and retain professional staff, dependence
on key personnel, ability to manage growth
effectively, risks associated with rapid
technological advances, risks associated
with possible acquisitions, risks associated
with the Company's strategic partnerships,
various project-associated risks, substantial
competition, general economic conditions,
risks associated with intellectual property
rights, risks associated with international
operations and other risk factors listed
from time to time in the Company's filings
and reports with the Securities and Exchange
Commission. |
| COGNIZANT
TECHNOLOGY SOLUTIONS CORPORATION |
| CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) |
| (In thousands, except
per share data) |
| |
Three Months Ended |
Nine
Months Ended |
|
September 30 |
September
30 |
|
2000 |
1999 |
2000 |
1999 |
| Revenues |
$ 33,376 |
$ 19,077 |
$ 84,992 |
$ 54,112 |
| Revenues-related party |
3,731 |
3,799 |
10,986 |
10,688 |
| Total revenues |
37,107 |
22,876 |
95,978 |
64,800 |
| Cost of revenues |
19,110 |
11,873 |
49,425 |
33,733 |
| Gross profit |
17,997 |
11,003 |
46,553 |
31,067 |
| Selling, general and administrative
expenses |
9,673 |
6,019 |
25,068 |
16,809 |
| Depreciation and amortization expense |
1,245 |
808 |
3,242 |
2,149 |
| Income from operations |
7,079 |
4,176 |
18,243 |
12,109 |
| Other income: |
| Interest income |
732 |
331 |
1,779 |
853 |
| Other, net |
(167) |
61 |
(431) |
|
| Total other income |
565 |
392 |
1,348 |
947 |
| Income before provision for income
taxes |
7,644 |
4,568 |
19,591 |
13,056 |
| Provision for income taxes |
(2,859) |
(1,708) |
(7,327) |
(4,883) |
| Net income |
$ 4,785 |
$ 2,860 |
$ 12,264 |
$ 8,173 |
| Basic earnings per share * |
$ 0.26 |
$ 0.16 |
$ 0.66 |
$ 0.45 |
| Diluted earnings per share * |
$ 0.24 |
$ 0.15 |
$ 0.61 |
$ 0.42 |
| Weighted average number of common
shares outstanding * |
18,584 |
18,323 |
18,538 |
18,313 |
| Weighted average number of common
and dilutive shares outstanding * |
20,109 |
19,177 |
20,226 |
19,242 |
* Reflects a 2-for-1 stock split paid
on March 16, 2000. |
|
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| COGNIZANT TECHNOLOGY
SOLUTIONS CORPORATION |
| CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
(Unaudited) |
| (In thousands) |
| |
September
30, 2005 |
December
31, 2004 |
| Assets |
| Current Assets |
|
|
| Cash and cash equivalents* |
$214,909 |
$199,296 |
| Short-term investments* |
153,587 |
115,465 |
| Trade accounts receivable, net
of allowances of $1,924 and $1,560
respectively |
146,865 |
96,363 |
| Unbilled Accounts Receivable |
24,723 |
14,154 |
| Deferred income tax assets |
30,043 |
16,815 |
| Other current assets |
21,733 |
11,904 |
| Total Current Assets |
591,860 |
453,997 |
| Property and equipment - net |
126,515 |
90,705 |
| Goodwill |
18,289 |
9,701 |
| Other Intangible assets - net |
16,877 |
12,126 |
| Deferred income tax assets |
10,806 |
- |
| Other assets |
7,389 |
6,216 |
| Total Assets |
$771,736 |
$572,745 |
| Liabilities
and Stockholders' Equity |
| Current Liabilities |
|
|
| Accounts payable |
$15,004 |
$11,190 |
| Accrued expenses and other liabilities |
115,085 |
103,870 |
| Total Current Liabilities |
130,089 |
115,060 |
| Deferred income tax liabilities |
- |
4,156 |
| Total Liabilities |
130,089 |
119,216 |
| Stockholders' Equity |
641,647 |
453,529 |
| Total Liabilities
and Stockholders' Equity |
$771,736 |
$572,745 |
| *In
the first quarter, the Company began
to classify its investment in auction-rate
securities as short-term investments.
These investments were included
in cash and equivalents in previous
periods ($94.15) million as of December
31, 2004), and such amounts have
been reclassified in the accompanying
financial statements to conform
to the current period classification.
This change in classification had
no effect on the amounts of total
current assets, total assets, net
income or cash flow from operations
of the Company. |
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Contact |
Investors
Contact |
Media
Contact |
Gordon Coburn
Chief Financial Officer
201-678-2712 |
Gordon McCoun/Peter
Schmidt |
Brian Maddox/Scot
Hoffman
Financial Dynamics
212-850-5600
shoffman@fd-us.com |
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