Cognizant Q1 CY13 revenue exceeds $2 bn

Cognizant had opened 2013 with a bang. Quarterly revenue rose to $2.02 billion ( Q1 CY 13), up 18.1% from the year-ago quarter and 3.7% sequentially. Reflecting on the results, Francisco D'Souza, CEO, Cognizant said, "Performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services, We continue to make solid progress developing emerging offerings in new markets, new SMAC technologies, and new non-linear solutions and services. I'm particularly pleased with the recent launch of our portfolio of Cognizant BusinessCloud solutions that enable clients to quickly deploy a range of business and best-in-class IT solutions and to forgo costly capital outlays and lengthy implementation timelines."

The results are well received by the market and the analysts' community and unlike 2102, in which the company scaled down to 20% from what it initially said-about 23%. That did not go well particularly with the investors. And for 2013, the company has given a cautious 17% guidance and with strong Q1, this full year guidance looks all the more achievable for cognizant.

For Q2, 2013 the revenue anticipated to be at least $2.13 billion. Meanwhile for fiscal 2013 revenue expected to be at least $8.60 billion, up 17% compared to 2012. Net headcount addition for the quarter was approximately 6,000, taking its global head count to approximately 162,700 as of March 31, 2013.

"Our financial model continues to allow us to deliver solid top-line growth with stable margins, while investing in our next generation of services to spur long-term strength," said Karen McLoughlin, Chief Financial Officer. "In addition, we have repurchased $74 million worth of shares year-to-date under our stock repurchase program and, as announced today, have expanded the program to $1.5 billion, reflecting our ability to generate strong cash flows, confidence in our business, and our commitment to drive shareholder value."

According to Gordon Coburn, President, Cognizant, ""Our long-term re-investment in our business and the strength and depth of our client relationships give us the confidence to deliver continued industry-leading revenue growth. We are well positioned to help clients run better by driving greater efficiency and effectiveness, while simultaneously helping them to run different by innovating and transforming their businesses for the future."