Cognizant Technology Solutions Corporation reported a 3 per cent decline in net income to $456 million for the second quarter ended June 30, 2018, as against $470 million in the corresponding previous quarter.
The drop was primarily due to net non-operating foreign exchange losses driven by depreciation of the rupee versus the prior year period and the initial funding of the Cognizant US Foundation, said a company release.
The US-based IT company, which has majority of its employees working in India, reported a 9 per cent increase in quarterly revenue at $4.01 billion ($3.67 billion). Revenue from the ‘communications, media and technology’ vertical was up 15.8 per cent over the year-ago quarter. While ‘products and resources’ reported a 12.4 per cent jump, and ‘healthcare’ was up 10.1 per cent and ‘financial services‘ 4.5 per cent.
Cognizant added 7,500 net employees in the second quarter, taking the total staff strength to 268,900 at the end of the reporting period, the release said.
Outlook
For the third quarter, Cognizant expects revenue to be in the range of $4.06 – 4.10 billion and for 2018 full year in the range of $16.05–16.30 billion.
Cognizant is making ‘solid’ progress on plans to accelerate shift to digital services and solutions, said Francisco D’Souza, CEO and Vice-Chairman of the Board.
“We have been methodical in developing, aligning and applying our portfolio of skills, services and solutions to clients’ needs, so they can become fully digital organisations. And we remain confident in our ability to invest for growth and achieve our financial targets.” he added.