IT-major Cognizant on Friday said in 2012 it lined up capital expenditure to the tune of $370 million. It may be noted in 2011 the company had incurred capital expenditures of $288 million, slightly above its original expectations for $285 million.
Addressing the analyst the company said it concluded quarter-ended December 31, 2011, with over $2.4 billion of cash and short-term investments. Commenting on the revenues, the company’s management said revenue during the quarter rose to $1.66 billion from $1.31 billion, up 26.9 per cent from the year-ago quarter.
Application Development represented 51 per cent of revenue and Application Management 49 per cent for the quarter. Development grew 30.9 per cent year-on-year and 4.3 per cent sequentially. Management grew 23.1 per cent year-over-year and 3.5 per cent sequentially.
“We saw a fairly balanced growth between development and management as clients expanded outsourcing projects. For the full year, Application Development represented 51 per cent of revenue, and grew 41 per cent, while Application Management represented 49 per cent of revenue and grew 26 per cent.” During the quarter, 79.8 per cent of revenue came from clients in North America. Europe was 16.5 per cent and 3.7 per cent came from our clients in Asia Pacific, the Middle East and Latin America.
For the quarter, North America grew 6.1 per cent sequentially and 31.1 per cent year over year. For the year, North America grew 34 per cent. For the quarter, all of Europe declined 5.6 per cent sequentially and grew 8.8 per cent year over year. For the year, Europe grew 28 per cent. Continental Europe declined eight per cent sequentially in fourth quarter, and the United Kingdom declined 4.2 per cent. European revenue was negatively impacted by currency movements of approximately $8.6 million compared to the third quarter. On a constant dollar basis, Europe declined 2.7 per cent sequentially, and grew 8.6 per cent year over year.
On the pricing, the company said, “as expected, on a sequential basis, our pricing was flat during the fourth quarter”as most of our 2011 price increases were reflected in our run-rate coming into the quarter.”
“We closed the quarter with 785 active customers’ and the number of accounts which we consider to be strategic increased by 6. This brings our total number of strategic clients to 191. We continue to see a trend towards our newer strategic customers embracing a wider range of Cognizant’s services at an earlier stage in the relationship.”
