Cognizant Technology Solutions Reports 138% Increase in Second Quarter Revenue.NEW YORK--(BUSINESS WIRE)--July 20, 1998-- Diluted Earnings Per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of Increase To $0.15 Cognizant Technology Solutions Cognizant redirects here. For a definition of the word see the entry for at Wiktionary Cognizant Technology Solutions (NASDAQ: CTSH) is an information technology services company with headquarters in New Jersey U.S.A. Corp. (Nasdaq:CTSH) today announced record financial results for the second quarter and six months ended June June: see month. 30, 1998. Revenue for the second quarter increased 138 percent to $12.7 million, from $5.3 million in the quarter ended June 30, 1997. Net income for the quarter was $1.1 million as compared to $107,000 for the second quarter of 1997. Diluted earnings per share increased to $0.15 for the quarter ended June 30, 1998, from $0.02 for the comparable quarter of 1997. For the first six months of 1998, total revenue increased 139 percent to $22.9 million from $9.6 million for the six months ended June 30, 1997. Net income for the six months ended June 30, 1998 was $1.8 million, up from $150,000 for the six months ended June 30, 1997. Diluted earnings per share were $0.25 as compared to $0.02 for the six months ended June 30, 1997. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the quarter increased significantly to $1.6 million from $330,000 for the year-ago quarter. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 12.5%, up from 6.2% in the 1997 second quarter. For the six months ended June 30, 1998, operating income increased to $2.7 million from $495,000 in the comparable period in 1997. The operating margin was 11.8% compared to 5.2% for the six-month period ended June 30, 1997. "Our first quarter as a public company marked a very solid period for Cognizant Technology Solutions," said Kumar Kumar (from Sanskrit meaning prince or an (unmarried) youth) is an Indian title, given name or family name. As a title it can mean son of a Rājā, prince, or heir apparent and enters in princely compound titles. Mahadeva Mahadeva may refer to :
intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue base and earnings visibility. As we expand our customer base, we will continue to invest in additional market opportunities, as well as in our people and infrastructure." The Company also announced today that it has added nine new accounts during the first half of 1998 with initial projects ranging in size from approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100,000 to $2 million. Cognizant Technology Solutions delivers high-quality, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , full-life-cycle solutions to complex software development and maintenance problems. These solutions include application development and maintenance, Year 2000 and Eurocurrency Eurocurrency Currency deposited by national governments or corporations in banks outside their home market. This applies to any currency and to banks in any country. For example, South Korean won deposited at a bank in South Africa, is considered Eurocurrency. compliance, testing and quality assurance, and re-hosting and re-engineering re-engineering - The examination and modification of a system to reconstitute it in a new form and the subsequent implementation of the new form. http://erg.abdn.ac.uk/users/brant/sre. services. CTS (1) (Clear To Send) The RS-232 signal sent from the receiving station to the transmitting station that indicates it is ready to accept data. Contrast with RTS. (2) (Common Type System) The data typing used in . provides service to its customers through a unique business model that employs virtual project teams that combine technical and account management personnel at the customer location and seven development centers in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . CTS is a subsidiary of IMS Health IMS Health (NYSE: RX) is an international consulting and data services company that supplies the pharmaceutical industry with sales data and consulting services. IMS Health was founded in 1954 by Bill Frohlich and David Dubow. (NYSE NYSE See: New York Stock Exchange :RX), the world's leading provider of information solutions to the pharmaceutical and healthcare industries. Additional information is available at http:/www.cts-corp.com. Certain statements contained herein, including statements regarding the development of the Company's services, markets and future demand for the Company's services and other statements regarding matters that are not historical facts, are forward- looking statements (as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995). Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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, risks associated with intellectual property rights, risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and other risk factors listed from time to time in the Company's filings and reports with the Securities and Exchange Commission. -0-
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
Condensed Consolidated Statement of Operations
(unaudited)
(In thousands of dollars, except per share data)
Three Six
Months Ended Months Ended
June 30, June 30,
1998 1997 1998 1997
--------------- ---------------
Revenue $ 8,493 $2,589 $15,022 $4,727
Revenue-related party 4,175 2,730 7,884 4,848
Total revenue 12,668 5,319 22,906 9,575
Cost of revenue 7,326 3,144 13,255 5,551
----- ----- ------ -----
Gross profit 5,342 2,175 9,651 4,024
Selling, general and
administrative expenses 3,225 1,525 5,930 2,928
Depreciation and
amortization expense 535 320 1,015 601
----- ----- ------ -----
Income from operations 1,582 330 2,706 495
Other income:
Interest income 48 2 79 3
Other, net 74 - 57 -
Total other income 122 2 136 3
Income before provision
for income taxes 1,704 332 2,842 498
Provision for income taxes (638) (55) (1,064) (74)
Minority interest - (170) - (274)
------ ----- ------ -----
Net income $1,066 $ 107 $1,778 $ 150
====== ===== ====== =====
Basic earnings per share $0.15 $0.02 $0.26 $0.02
===== ===== ====== =====
Diluted earnings per share $0.15 $0.02 $0.25 $0.02
===== ===== ====== =====
Weighted average number of
common shares outstanding 6,943 6,500 6,779 6,500
===== ===== ====== =====
Weighted average number of
common and diluted shares
outstanding 7,173 6,500 7,003 6,500
===== ===== ===== =====
-0-
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
June 30, December 31,
1998 1997
======= =======
Assets
Current Assets
Cash and Cash Equivalents $21,515 $ 2,715
Trade Accounts Receivable-Net 7,113 4,733
Trade Accounts receivable-related party 1,768 2,670
Other Current Assets 2,075 778
Total Current Assets 32,471 10,896
Property and Equipment-Net 5,427 4,453
Goodwill, net 1,988 2,147
Other Assets 171 802
Total Assets $40,057 $18,298
======= =======
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 919 $ 1,543
Accrued and Other Current Liabilities 7,165 3,659
Total Current Liabilities 8,084 5,202
Deferred Income Taxes 3,845 2,593
Due to related party 23 6,646
Total Liabilities 11,952 14,441
Commitments and Contingencies
Mandatory Redeemable Common Stock
(113,750 shares issued and outstanding) - 438
Stockholders' Equity 28,105 3,419
------- -------
Total Liabilities and Stockholders' Equity $40,057 $18,298
======= =======
CONTACT: Cognizant Technology Solutions Corp.
Gordon Coburn
Chief Financial Officer
212-887-2385
or
Morgen-Walke Associates
Michele Katz/Connie Bienfait/Ian Hirsch
212-850-5600
e-mail:cbienfait@morgenwalke.com
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