The Hindu Business Line : Cognizant plans $76-m expansion

THE US-based Cognizant Technology Solutions Corporation, provider of information technology services, plans to further expand its India-based techno-complex capacity in Chennai, Pune, Kolkata and Bangalore. It will also construct a new training academy in Chennai.

Cognizant expects to spend approximately $76 million on the expanded construction programme and land purchases, an increase of approximately $34 million compared to the expansion programme announced in December 2003, says a company press release.

The announcement today supersedes the company's facility investment plan announced in December 2003. The new facilities will add approximately 830,000 square feet of space to house approximately 9,000 employees, as well as around 100,000 square feet of educational space for use by Cognizant's training academy.

Posts $26.1-m net income: Cognizant has reported a net income of $26.1 million on revenues of $155.42 million for the quarter ended September 30, 2004, against a net income of $16 million on revenues of $98 million for the corresponding period last year.

Based on current visibility, the company anticipates its fourth quarter 2004 revenue to be at least $167 million, and for fiscal ending December 2004 the revenues to be at least $581 million, from the earlier guided $565 million. The total headcount by end of fiscal 2004 is expected to reach 15,000, says a company release.