Cognizant Technology Solutions Reports Record Revenue, Net Income and EPS for Quarter.TEANECK Teaneck (tē`nĕk), residential township (1990 pop. 37,825), Bergen co., NE N.J., near the Hackensack River; settled in the early 1600s, inc. 1895. Jewelry, electrical equipment, and food seasonings are among its manufactures. , N.J.--(BUSINESS WIRE)--February 10, 1999-- Revenue Increases 143% to $19.5 Million Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: Expands to 19.4% and 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. to $0.27 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 financial results for the fourth quarter and year ended December December: see month. 31, 1998. Revenue for the fourth quarter increased 143 percent to $19.5 million, from $8.0 million in the quarter ended December 31, 1997. Net income for the quarter was $2.6 million as compared to $663,000 for the fourth quarter of 1997. 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 increased to $0.27 for the quarter ended December 31, 1998, from $0.10 for the comparable quarter of 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 $3.8 million as compared to $1.0 million in the year-ago quarter. The operating margin was 19.4 percent, up from 13.0 percent in the 1997 fourth quarter. "Our performance this quarter and year reflects the success of many of the initiatives we launched this year," 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 :
v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. our reliance on Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 engagements as a percentage of revenue by gaining our clients' confidence to the extent that they seek out our expertise on projects beyond Y2K. Growth of non-Y2K business with existing clients was a key driver of fourth quarter results. The percentage of revenue related to Y2K engagements in the fourth quarter was 34%, compared to 49% for the third quarter of 1998. We also added a large number of new clients during 1998, leading to reduced reliance on affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. ." "Our operating margins also improved substantially during the quarter," commented Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. Coburn, Chief Financial Officer. This reflects improvements in utilization and our ability to win larger contracts with larger clients in areas such as application development and maintenance. In addition to exceeding our financial and operational goals, our efforts to provide the highest caliber of technology solutions were recognized when we were assessed Level IV certification under the Software Engineering Institute's (SEI) Capability Maturity Model. This places Cognizant cog·ni·zant adj. Fully informed; conscious. See Synonyms at aware. [From cognizance.] Adj. 1. as one of 18 organizations worldwide, registered with the SEI, as having achieved the status of being able to deliver higher-quality product in less time and at lower costs." For the year ended December 31, 1998, total revenue increased 137 percent to $58.6 million, from $24.7 million for the year ended December 31, 1997. Net income was $6.0 million, up from $1.0 million for the year ended December 31, 1997. Diluted earnings per share were $0.73 as compared to $0.16 for the year ended December 30, 1997. Operating income increased in 1998 to $8.9 million from $2.1 million in the prior year. The 1998 operating margin was 15.2 percent compared to 8.6 percent for the year ended December 30, 1997. Cognizant Technology Solutions (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 . ) 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. Using an extraordinary pool of over 1,400 computer sciences and engineering professionals located at client sites and at seven development centers in India, the company's offerings include application development, maintenance and re-engineering services, as well as Year 2000 and Euro-currency compliance services. CTS core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
data warehousing - data warehouse , internet, object-oriented development, client/server and legacy platforms. For more information, visit CTS on the web 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 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. (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 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 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, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
--------------- ---------------
Revenue $16,449 $4,777 $45,031 $13,772
Revenue-related party 3,051 3,245 13,575 10,972
Total revenue 19,500 8,022 58,606 24,744
Cost of revenue 9,740 4,662 31,919 14,359
----- ----- ------ -----
Gross profit 9,760 3,360 26,687 10,385
Selling, general and
administrative expenses 5,364 1,878 15,546 6,898
Depreciation and
amortization expense 620 442 2,222 1,358
----- ----- ------ -----
Income from operations 3,777 1,041 8,918 2,129
Other income:
Interest income 304 20 638 25
Other, net 1 - 83 -
Total other income 305 20 721 25
Income before provision
for income taxes 4,082 1,060 9,639 2,154
Provision for income taxes (1,527) (397) (3,606) (581)
Minority interest - - - (545)
------ ----- ------ -----
Net income $2,555 $ 663 $6,033 $1,028
===== ===== ====== =====
Basic earnings per share $0.28 $0.10 $0.76 $0.16
===== ===== ====== =====
Diluted earnings per share $0.27 $0.10 $0.73 $0.16
===== ===== ====== =====
Weighted average number of
common shares outstanding 9,148 6,614 7,943 6,547
===== ===== ====== =====
Weighted average number of
common and diluted shares
outstanding 9,548 6,779 8,269 6,605
===== ===== ===== =====
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(In thousands of dollars)
December 31, December 31,
1998 1997
Assets ========= ========
Current Assets
Cash and Cash Equivalents $28,418 $ 2,715
Trade Accounts Receivable-Net 9,230 4,523
Trade Accounts Receivable-Related Party 1,877 2,670
Other Current Assets 2,842 998
Total Current Assets 42,367 10,896
Property and Equipment-Net 6,270 4,453
Goodwill- Net 1,830 2,147
Other Assets 1,212 802
Total Assets $51,679 $18,298
======= =======
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 1,744 $ 1,543
Accrued and Other Current Liabilities 11,207 3,659
Total Current Liabilities 12,951 5,202
Deferred Income Taxes 6,103 2,593
Due to Related Party 9 6,646
Total Liabilities 19,063 14,441
Mandatory Redeemable Common Stock - 438
Stockholders' Equity 32,616 3,419
------- -------
Total Liabilities and Stockholders' Equity $51,679 $18,298
======= =======
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion