Aug. 4, 2009 (Al Bawaba) -- Cognizant reports second quarter 2009 results

 Revenue for the quarter up 13% year-over-year and 4% sequentially

 Raises guidance for FY2009 Revenue and EPS

Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of information technology, consulting and business process outsourcing services, today announced its second quarter 2009 financial results.

Highlights—Second Quarter 2009

 Quarterly revenue rose to $776.6 million, up 13% from the year-ago quarter and up 4% sequentially Quarterly diluted EPS on a GAAP basis was $0.47, compared to $0.35 in the year-ago quarter  Quarterly diluted EPS on a non-GAAP basis, which excludes stock-based compensation and stock-based Indian fringe benefit tax expense, was $0.50, compared to $0.39 in the year-ago quarter GAAP and non-GAAP diluted EPS includes the positive impact of $0.04 in non-operating foreign currency exchange gains

Revenue for the second quarter of 2009 rose to $776.6 million, up 13% from $685.4 million in the second quarter of 2008. GAAP net income was $141.3 million, or $0.47 per diluted share, compared to $103.9 million, or $0.35 per diluted share, in the second quarter of 2008. Diluted earnings per share on a non-GAAP basis was $0.50. GAAP operating margin for the quarter was 19.5%. Excluding stock based compensation expense of $8.4 million and stock-based Indian fringe benefit tax expense of $1.3 million, non-GAAP operating margin was 20.8%, above the Company’s targeted 19-20% range. Earnings for the quarter included $14.1 million of pre-tax non-operating foreign currency exchange gains (net of hedge losses), or $0.04 per share, primarily resulting from favorable fluctuations in the European currencies and Indian Rupee during the period. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

“Despite a fluid economic environment, we posted industry-leading revenue growth this quarter, which demonstrates the resilience of our business model and our ability to adapt to evolving client needs,” said Francisco D’Souza, President and CEO of Cognizant. “Large corporations are seeking us out to streamline global delivery, rationalize costs and create new business capabilities that significantly advance their business objectives over the short-, medium- and long-term. I am pleased that during the quarter we further solidified our leadership position in multiple industries, expanded our range of services, specifically in engineering services and industrial automation, and deepened our presence in emerging geographies such as Asia Pacific and the Middle East.”

Mr. D’Souza continued: “Based on the strength of our second quarter results, we’re increasing our 2009 revenue growth guidance from at least 10% to at least 11.5%.