The Hindu Business Line : Cognizant Tech net at $233 m

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Chennai Feb. 6 Cognizant Technology Solutions Corporation, a US-based provider of IT services with development centres in India, for calendar year 2006 reported revenue of $1.424 billion, up 61 per cent compared with 2005. Net income was $232.8 million ($166.3 million).

The Nasdaq-listed company's quarterly revenue increased to $424.4 million, up 65 per cent from the year-ago quarter. Net income was $69.5 million ($57.7 million), according to a company press release.

Tax Exemption

A spokesperson added that for the year ended December 2005, the company had got a tax exemption of approximately $12.3 million due to repatriation of funds from subsidiaries back to the US parent.

Excluding the exemption, net income has seen a jump of 53.1 per cent.

Based on current visibility, the company expects its 2007 revenue to be at least $2.04 billion and to add a net of over 17,000 professionals to take the total headcount to 56,000. Mr Gordon Coburn, Chief Financial and Operating Officer, Cognizant, in the release said the company added around 4,500 employees in the fourth quarter alone. More than 14,500 employees joined the company in 2006.

Chinese Students

Around 100 students from various Chinese universities would join Cognizant's China operations during 2007, according to Mr Francisco D'Souza, President and CEO, Cognizant. The company last year launched a campus-hiring programme in China and the first batch from top-tier Chinese universities began training in January.

Cognizant currently has 290 associates in China. As of December 2006, around 93 per cent of the company's team comprised of people recruited from within China. The Chinese team serves more than a dozen clients, most of whom from the US, he told analysts at a conference call to discuss the company's financial results

The US accounts for 86 per cent of revenue for Cognizant compared with 13 per cent from Europe. In 2005, revenue from Europe was 12 per cent, said a company official.

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