Cognizant Technology Solutions Reports Record Revenue and Profitability in Fourth Quarter.Business Editors 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)--Feb. 6, 2001 - Revenue and Net Income Rise More Than 70% - Attractive ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). Proposition Generates Increased Lead Generation 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), a leading e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. and application management solutions provider, today announced financial results for the fourth quarter and year ended December December: see month. 31, 2000. Revenue for the fourth quarter increased to $41.1 million, up 70 percent from $24.1 million in the fourth quarter of 1999. Revenue increased 84 percent excluding Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 related revenue from the prior year period. E-business revenues grew over 600% to 36% of total revenues while application management revenues increased 70%. Net income for the quarter ended December 31, 2000 increased 77 percent to $5.4 million, as compared to $3.1 million in the 1999 fourth quarter. 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 80 percent to $0.27 from $0.15 in the year ago period. "Cognizant cog·ni·zant adj. Fully informed; conscious. See Synonyms at aware. [From cognizance.] Adj. 1. continued to accelerate new customer wins in 2000, with 16 during the fourth quarter alone," 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 :
adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: business solutions. As a result, we are entering the new year with a record number of blue chip clients, many of whom we expect will substantially expand their relationship with Cognizant in 2001." "In an uncertain economic environment, large companies are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. partners who can quickly deliver realizable ROI. Cognizant's deep technology capabilities, process driven project management and on-site/offshore delivery produce fast, high quality, cost effective solutions -- attractive to any enterprise. Cognizant has the ability to both develop and deploy large scale systems that integrate e-Business with Legacy to substantially improve business productivity, and to manage these systems efficiently to deliver considerable savings in IT spending," added Mahadeva. "This quarter marks our 17th consecutive quarter of sequential revenue growth," stated Gordon Coburn, Chief Financial Officer. "We continued to execute on all fronts as our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: expanded, DSOs remained strong at 50 days and we generated approximately $13 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 year ended December 31, 2000 increased 54 percent to $137.0 million, from $88.9 million in the prior year. Revenue for the year increased 82 percent excluding Y2K revenue. Net income increased 57 percent to $17.7 million as compared to $11.2 million in 1999. Diluted earnings per share for the year 2000 increased 50 percent to $0.87 from $0.58 in 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 212-896-6107. 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 858-812-6440 and entering "17492913" from two hours after the end of the call until 11:59 p.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) on February 13, 2001. About Cognizant Technology Solutions Cognizant 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 management problems. Cognizant employs more than 2,800 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 (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certified See certification. . 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 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.
Cognizant Technology Solutions Corporation
Condensed Consolidated Statements of Financial Position
(Unaudited)
(In thousands)
December 31, December 31,
2000 1999
Assets
Current Assets
Cash and cash equivalents $ 61,976 $ 42,641
Trade accounts receivable,
net of allowances of $516
and $225, respectively 19,187 8,166
Trade accounts receivable -
related party 1,361 1,848
Unbilled accounts
receivable 1,941 1,071
Unbilled accounts receivable -
related party - 73
Other current assets 3,758 2,912
Total Current Assets 88,223 56,711
Property and equipment - net 15,937 9,474
Goodwill - net 1,195 1,513
Investments 1,955 -
Other assets 2,230 1,328
Total Assets $ 109,540 $ 69,026
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 2,849 $ 1,435
Accounts payable -
related party 8 -
Accrued and other current
liabilities 23,865 11,769
Total Current Liabilities 26,722 13,204
Deferred income taxes 16,702 10,361
Total Liabilities 43,424 23,565
Stockholders' Equity 66,116 45,461
Total Liabilities and
Stockholders' Equity $ 109,540 $ 69,026
Cognizant Technology Solutions Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2000 1999 2000 1999
Revenues $ 37,766 $ 19,972 $ 122,758 $74,084
Revenues -related
party 3,287 4,132 14,273 14,820
Total revenues 41,053 24,104 137,031 88,904
Cost of revenues 21,012 12,428 70,437 46,161
Gross profit 20,041 11,676 66,594 42,743
Selling, general and
administrative
expenses 10,891 6,252 35,959 23,061
Depreciation and amortization
expense 1,265 888 4,507 3,037
Income from operations 7,885 4,536 26,128 16,645
Other income:
Interest income 870 411 2,649 1,263
Other, net (98) (58) (530) 37
Total other income 772 353 2,119 1,300
Income before provision for
income taxes 8,657 4,889 28,247 17,945
Provision for income
taxes (3,237) (1,828) (10,564) (6,711)
Net income $ 5,420 $ 3,061 $ 17,683 $11,234
Basic earnings
per share (a) $ 0.29 $ 0.17 $ 0.95 $ 0.61
Diluted earnings
per share (a) $ 0.27 $ 0.15 $ 0.87 $ 0.58
Weighted average number
of common
shares outstanding (a) 18,634 18,428 18,565 18,342
Weighted average number of common
and dilutive
shares outstanding (a) 20,118 19,906 20,256 19,416
(a) Reflects a 2-for-1 stock split paid on March 16, 2000.
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion