Cognizant Technology Solutions Reports Record Revenue of $27.1 Million in First 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)--April 18, 2000 Non-Y2K Revenue Increases 77% Total Revenue Increases 33%, Net Income Increases 25% 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), an 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 first quarter ended March 31, 2000. Revenue for the first quarter of 2000 increased 33 percent to $27.1 million, from $20.4 million in the first quarter of 1999. Non-Y2K revenue increased 77 percent from the prior year period. Net income for the quarter ended March 31, 2000 increased 25 percent to $3.5 million, as compared to $2.8 million in the 1999 first 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 21 percent to $0.17 from $0.14 in the year ago period. "This quarter marks the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. sequential revenue growth as we end our Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 transition" 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, Chairman and Chief Executive Officer "Y2K declined to 2 percent of revenue from 7 percent in the fourth quarter of 1999 and 26 percent in the prior year quarter. We won a number of new e-business deals, and the percentage of revenue from e-business increased to 20 percent from roughly 10 percent in the fourth quarter of 1999. Application management also contributed strongly to our revenue growth." "To meet the growing demand for our e-business and application management work, Cognizant cog·ni·zant adj. Fully informed; conscious. See Synonyms at aware. [From cognizance.] Adj. 1. increased billable headcount to 2,140, up 570 professionals from year ago levels," stated Gordon Coburn, Chief Financial Officer. "Also, employee retention remained high as our annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. turnover rate was 11 percent for the quarter." "The significant sales and marketing investments that we undertook beginning in the second quarter of 1999 resulted in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 18.9 percent compared to 19.9 percent in the year ago quarter. These investments are now paying off as we have experienced sequential margin expansion over the last three quarters, and expect continued leverage from these investments as we progress through the year," added Coburn. Cognizant Technology Solutions will host a conference call at 10:00 a.m. (eastern) to discuss the Company's quarterly results. The call will 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. 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 2,000 computer science and engineering professionals globally at its client sites and eight development centers in India. The company specializes in e-business and application management. Cognizant has been assessed at SEI/CMM Level 4 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. . 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 http://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 OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2000 1999
Revenues $ 23,564 $ 17,135
Revenues -related party 3,506 3,291
Total revenues 27,070 20,426
Cost of revenues 13,939 10,711
Gross profit 13,131 9,715
Selling, general
and administrative expenses 7,037 5,014
Depreciation and
amortization expense 971 631
Income from operations 5,123 4,070
Other income:
Interest income 505 276
Other, net (99) 62
Total other income 406 338
Income before
provision for income taxes 5,529 4,408
Provision for income taxes (2,068) (1,649)
Net income $ 3,461 $ 2,759
Basic earnings per share(1) $ 0.19 $ 0.15
Diluted earnings per share(1) $ 0.17 $ 0.14
Weighted average number of common
shares outstanding(1) 18,500 18,302
Weighted average number of common
and dilutive shares outstanding(1) 20,187 19,218
(1) Reflects a 2-for-1 stock split on March 16, 2000.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited)
(In thousands)
March 31, December 31,
2000 1999
Assets
Current Assets
Cash and cash equivalents $40,360 $42,641
Trade accounts receivable,
net of allowances of $238
and $225, respectively 12,871 8,166
Trade accounts
receivable - related party 1,719 1,848
Unbilled Accounts Receivable 1,236 1,071
Unbilled Accounts
Receivable - related party 618 73
Other current assets 3,740 2,912
Total Current Assets 60,544 56,711
Property and equipment - net 9,376 9,474
Goodwill - net 1,433 1,513
Other assets 1,456 1,328
Total Assets $72,809 $69,026
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 1,771 $ 1,435
Accrued and other current liabilities 9,731 11,769
Total Current Liabilities 11,502 13,204
Deferred income taxes 12,000 10,361
Total Liabilities 23,502 23,565
Stockholders' Equity 49,307 45,461
Total Liabilities
and Stockholders' Equity $72,809 $69,026
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