New Delhi, India, May 8, 2014: Cognizant Technology Solutions Corporation, a leading provider of information technology, consulting, and business process outsourcing services, today announced its first quarter 2014 financial results.
Highlights – First Quarter 2014
First quarter revenue of $2.42 billion was up 19.9% from the year-ago period and up 2.8% sequentially.
GAAP diluted EPS was $0.57, up from $0.47 in the year-ago period.
Non-GAAP diluted EPS was $0.62, up from $0.51 in the year-ago period.
Net headcount addition for the quarter was approximately 7,200.
Revenue for the first quarter of 2014 rose to $2.42 billion, up 19.9% from $2.02 billion in the first quarter of 2013. GAAP net income was $348.9 million, or $0.57 per diluted share, compared to $284.2 million, or $0.47 per diluted share, in the first quarter of 2013. Non-GAAP diluted earnings per share was $0.62 compared to $0.51 in the first quarter of 2013. GAAP operating margin for the quarter was 19.0%. Non-GAAP operating margin was 20.8%, higher than the Company’s target range of 19-20%. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.
Francisco D’Souza, Chief Executive Officer, said, “Cognizant continues to be well positioned to help clients as they face the secular shifts impacting their businesses. Our broad set of capabilities and our compelling value proposition enable Cognizant to help clients simultaneously ‘run better’ and ‘run different,’ by not only driving efficiency in their current operations, but also helping them to re-imagine and re-design their business models.”
Gordon Coburn, President, said, “We remain confident in the overall demand environment and in our ability to deliver our previously stated revenue guidance of at least $10.3 billion for 2014, up at least 16.5% over 2013. Our strategy of re-investing in our business to build strength across all of our growth horizons is clearly paying off. As the impact of digital technologies increasingly becomes a CEO level agenda item, Cognizant is well positioned to capitalize on this trend.”
2014 Outlook – Second Quarter and Full Year
The Company is providing the following guidance:
Second quarter 2014 revenue expected to be between $2.50 billion and $2.53 billion.
Second quarter 2014 non-GAAP diluted EPS expected to be $0.62.
Fiscal 2014 revenue expected to be at least $10.3 billion, up at least 16.5%
compared to 2013.
Fiscal 2014 non-GAAP diluted EPS expected to be at least $2.54.
Karen McLoughlin, Chief Financial Officer, said, “Our continued focus on operational excellence and our strong ramp up in hiring during the quarter positions us to effectively service the healthy demand environment that we anticipate this year. In addition, we are particularly pleased with the on-going success of our retention programs, as our attrition rate once again trended lower this quarter.”