IT services firm Cognizant Technology Solutions Corporation has reported a net income of $495 million for the third quarter ended September, up from $444 million in the same period last year. Revenue rose 9.1% to $3.77 billion for the quarter under review.
The company has, in the meanwhile, raised the lower end of its annual revenue forecast. It now expects revenue of $14.78 billion to $14.84 billion. It had earlier forecast revenue of $14.70 billion to $14.84 billion.
“We are making consistent progress in executing the plan to accelerate our shift to digital services and solutions,’’ a company release quoted Francisco D’Souza, chief executive officer, as saying. He went on to assert that “our (Cognizant) long-term relationship with clients and deep understanding of their priorities puts us in a privileged position to help them adapt, compete and grow.’’
Revenue from financial sector business — which accounts for over a third of the company’s total revenue — rose 3.8% and that from the healthcare sector 9.3% during the quarter under review.
About 38% of its revenue had come from fixed price contracts. The company reported a 17.2% margin under GAAP (generally accepted accounting principles) for the quarter.
The firm added seven new strategic customers during the quarter, bringing the total to 350. Headcount decreased by 700 sequentially to 2,56,100 in the September quarter.
“At 22.5%, the annual attrition rate reflects higher than usual voluntary attrition related to aspects of our realignment programme,’’ the release said. North America continues to be the dominant revenue earner for the company.
Cognizant said it would continue “to enhance digital capabilities through mergers and acquisitions.’’
Accelerating the shift towards digital service would remain the key focus of the firm. And, delivering sustainable growth and profitability would form the fulcrum of its execution strategy in this regard, the firm said.