Cognizant Q2 revenue hits $516 million

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As more countries vie for a slice of the offshore outsourcing pie, it would seem the market is far from crowded, with traditional Indian players still enjoying healthy bank balances, if Cognizant's latest results are anything to go by.

The offshore giant, which is increasingly marketing itself as a global player in a bid to move away from the perception that it only sends work to India, released its second quarter results yesterday, reporting a 53 per cent surge in revenue to $516.5 million.

Revenue derived from European businesses for the period ending 30 June grew by 79 per cent year-on-year and full year revenues for the company as a whole are expected to top $2 billion.

"Our second quarter results clearly reflect our ability to effectively maintain our operating targets while continuing to reinvest in the growth of the business," said Gordon Coburn, Cognizant's chief financial and operating officer.

"In order to support our future growth, Cognizant's board of directors has approved plans to make an additional $100 million investment in our previously announced infrastructure expansion program across India. The expanded construction plan at our new Chennai campus, located in a Special Economic Zone ("SEZ"), has now doubled in size with over two million square feet of capacity currently under construction. We have also increased the size of the first phase of planned construction of our SEZ facility in Coimbatore to over 725,000 square feet, and are acquiring additional property in Hyderabad and Chennai. We expect this investment to enhance our flexibility to meet the escalating demand for our services from both new and existing customers around the world. As a result of the strong demand environment, we are raising our guidance for full year 2007."

Third quarter revenue is expected to be in the region of at least $550 million, with total number of employees reaching 55,000 by the end of the year, according to Cognizant.

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