Cognizant Technology Solutions Reports Record Fourth Quarter and Full-Year Results.Business Editors/High-Tech Writers TEANECK, N.J.--(BUSINESS WIRE)--Feb. 10, 2004 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. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CTSH): -- Quarterly Revenue exceeds expectations, growing 10% sequentially to $108.2 Million -- Solid Cash Flow Generation -- Margins & Pricing Remain Firm -- Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 4th quarter EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. exceeds expectations reaching $0.25 Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of IT services, today announced its financial results for the fourth quarter and full-year ended December 31, 2003. Highlights for the fourth quarter include: -- Quarterly revenue increased to $108.2 million, up 10% sequentially and 61% from the year ago quarter -- Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 19.8% compared to 19.6% sequentially and 19.8% in the year ago period -- Diluted quarterly EPS reached $0.25 Revenue for the fourth quarter increased to $108.2 million, up 10% from $98.1 million in the third quarter of 2003, and up 61% from $67.0 million in the fourth quarter of 2002. Net income for the fourth quarter increased to $17.7 million, or $0.25 per diluted share compared to $16.0 million, or $0.23 per diluted share in the third quarter of 2003. Operating margin for the quarter increased slightly to 19.8%, compared to 19.6% in the third quarter of 2003 and 19.8% in the fourth quarter of 2002. "We are pleased to report that Cognizant cog·ni·zant adj. Fully informed; conscious. See Synonyms at aware. [From cognizance.] Adj. 1. has delivered yet another strong quarter's performance," stated Lakshmi Narayanan Lakshmi Narayanan is the vice chairman and ex-CEO of Cognizant Technology Solutions (CTS) . He was the CEO and president of Cognizant till 2006. [1] Lakshmi has played a leading role in the global information technology industry for more than 25 years, managing divisions , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cognizant. "Cognizant's consistent industry leading growth rate is due to our strategic offering, the quality of our employees, exceptional execution, and unparalleled customer satisfaction. Cognizant continues to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its position as a highly differentiated premium provider of offshore outsourcing Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the product or service will be sold or consumed. services, and this is reflected in our continuing ability to broaden and deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. our relationships with existing clients, as well as maintaining a high-win rate against the traditional offshore competitors and the global systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. . In addition to seeing continued demand for application management work, clients are now increasingly engaging Cognizant on highly complex, large-scale development and integration initiatives." Revenue for the full year 2003 was $368.2 million compared to $229.1 million in 2002. Net income for 2003 increased to $57.4 million, or $0.84 per diluted share on a split-adjusted basis, including a $0.03 per share expense related to the 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. exchange offer in the first quarter of 2003. "We finished 2003 with a solid pipeline and another strong quarter of performance across all our key financial and operational metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , including increasing our cash balance by $34 million during the quarter to over $194 million," said Gordon Coburn, Chief Financial Officer. "Additionally, our new strategic clients are continuing to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale quickly and we are seeing strong revenue growth from our established customer base. We have significant revenue visibility due to the high level of recurring re·cur 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 and the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. nature of our customer relationships and are confident in our ability to deliver healthy sequential revenue growth throughout 2004." Conference Call Cognizant will host a conference call on February 10th, at 10:00 AM. (ET) to discuss the Company's quarterly and full year results. To listen to the call please dial (800)-508-1412 domestic and (706)-643-1946 internationally. The call will also be broadcast live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. A replay will be made available on the web site at www.cognizant.com or by calling 800-642-1687 for domestic callers and 706-645-9291 for international callers and entering "4976393" from two hours after the end of the call until 11:59 p.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) on February 17, 2004. About Cognizant Technology Solutions Cognizant Technology Solutions Corporation (Nasdaq: CTSH) is a leading provider of IT services. Focused on delivering strategic information technology solutions that address the complex business needs of its clients, Cognizant provides applications management, development, integration, and re-engineering, infrastructure management, business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in , and a number of related services such as enterprise consulting, technology architecture, program management and change management through its onsite/offshore outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. model. Cognizant's more than 9,500 employees are committed to partnerships that sustain long-term, proven value for customers by delivering high-quality, cost-effective solutions through its development centers in India and Ireland, and onsite client teams. Cognizant maintains P-CMM P-CMM People Capability Maturity Model (Software Engineering Institute) P-CMM Personnel Capability Maturity Model and CMMi Level 5 assessments from an independent third-party assessor and was recently ranked #1 in Forbes' Hot Shots 200 Up & Comers and ranked as the top information technology company in BusinessWeek's Hot Growth Companies. Further information about Cognizant can be found at http://www.cognizant.com. This press release includes statements which may constitute 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. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of 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, 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 and the factors discussed in our most recent Form 10-Q Form 10-Q See 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.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2003 2002 2003 2002
--------- -------- --------- ---------
Revenues $108,158 $62,147 $365,656 $208,657
Revenues -related party - 4,864 2,575 20,429
--------- -------- --------- ---------
Total revenues 108,158 67,011 368,231 229,086
Cost of revenues 58,598 36,194 199,724 122,701
--------- -------- --------- ---------
Gross profit 49,560 30,817 168,507 106,385
Selling, general and
administrative expenses 24,635 15,412 84,259 53,345
Depreciation and amortization
expense 3,539 2,163 11,936 7,842
--------- -------- --------- ---------
Income from operations 21,386 13,242 72,312 45,198
--------- -------- --------- ---------
Other income (expense):
------------------------------
Interest income 770 503 2,128 1,808
Other income / (expense), net (79) (146) (199) (235)
Split-off costs (non tax
deductible) - (1,680) (2,010) (1,680)
--------- -------- --------- ---------
Total other income / (expense) 691 (1,323) (81) (107)
--------- -------- --------- ---------
Income before provision for
income taxes 22,077 11,919 72,231 45,091
Provision for income taxes (4,352) (2,780) (14,866) (10,529)
--------- -------- --------- ---------
Net income $17,725 $9,139 $57,365 $34,562
========= ======== ========= =========
--------- -------- --------- ---------
Basic earnings per share (1) $0.28 $0.15 $0.92 $0.58
========= ======== ========= =========
--------- -------- --------- ---------
Diluted earnings per share (1) $0.25 $0.14 $0.84 $0.54
========= ======== ========= =========
Weighted average number of --------- -------- --------- ---------
common shares outstanding 63,939 60,674 62,505 59,241
========= ======== ========= =========
Weighted average number of
common and dilutive shares --------- -------- --------- ---------
outstanding 70,321 65,689 67,907 63,693
========= ======== ========= =========
(1) Reflects a 3-for-1 stock split distributed on April 1, 2003
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)
(In thousands)
December 31, December 31,
---------- ----------
2003 2002
--------- ----------
Assets
Current Assets
Cash and cash equivalents $194,221 $126,211
Trade accounts receivable, net of allowances
of $989 and $861, respectively 52,253 35,092
Trade accounts receivable - related party - 1,605
Unbilled accounts receivable 9,543 4,159
Unbilled accounts receivable - related party - 149
Current tax asset 14,066 3,711
Other current assets 8,414 4,907
--------- ---------
Total Current Assets 278,497 175,834
Property and equipment - net 58,438 39,090
Goodwill - net 4,477 878
Other Intangible assets - net 16,436 12,870
Other assets 2,741 2,801
--------- ---------
Total Assets $360,589 $231,473
========= =========
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $9,423 $6,948
Accrued and other current liabilities 53,213 34,539
--------- ---------
Total Current Liabilities 62,636 41,487
Deferred income taxes 23,883 24,505
--------- ---------
Total Liabilities 86,519 65,992
--------- ---------
--------- ---------
Stockholders' Equity 274,070 165,481
--------- ---------
--------- ---------
Total Liabilities and Stockholders' Equity $360,589 $231,473
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion