Cognizant Q4 revenue up 49 per cent

To add 10,200 people in 2006

Cognizant Technology Solutions reported a 49 per cent growth in revenue at $256.9 million for the fourth quarter ended December 31, 2005, against $172.8 million in the corresponding period last year.

Net income for the fourth quarter increased by 48 per cent to $45.3 million, compared to $30.6 million last year. The operating margin for the quarter was 19.9 per cent, a company release said.

Revenue for the full year 2005 increased by 51 per cent to $885.8 million, compared to $586.7 million in 2004. Net income for the full year was higher by 54 per cent to $153.9 million, compared to $100.2 million in 2004. Full year operating margin was 20.1 per cent compared to 20.0 per cent for 2004. By adding over 9,000 people, the total headcount of the company was increased to 24,300.

"Cognizant's strong performance during the fourth quarter concludes a year of exceptional overall performance for the company, driving us past an annual revenue run rate of $1 billion. This firmly places us in the top tier of the offshore IT services industry," said Lakshmi Narayanan, president and CEO of Cognizant.

The company closed the year with 67 strategic clients and added two more clients in financial services vertical during the quarter. In healthcare and life sciences, the company has client relationships with seven of the world's top pharmaceutical companies and three of America's top five healthcare organisations, the release said.

It expects to garner a revenue of at least $275 million in the first quarter and at least $1.26 billion, a 42 per cent growth, for the full year 2006. It expects to add over 10,200 people during 2006 and the total headcount of the company is expected to exceed 34,500 by the end of 2006.

"We ended the year with $424 million in cash and short-term investments on our balance sheet, an increase of over $109 million for the year," Gordon Coburn, chief financial officer of Cognizant, said.