“Cognizant posted very solid results in Q1. We exceeded our guidance that we set for Q1,” says Francisco D’Souza. “We grew 2.9% sequentially compared to the prior quarter and we feel good about it. The growth in the first quarter was broad-based across industries. The second quarter showed some acceleration, but it was not as strong as expected and this has led us to adopt a more conservative approach and take our full year guidance down to at least to 20% for this calendar year from the prior guidance of around 23%. We have taken a cautious approach in our guidance and still think that 20% is very a solid growth target given the environment.”
On the company’s growth drivers, D’Souza says, “Our BPO, IT infrastructure services and management consulting businesses have been leading the company’s growth. These are businesses that we have invested in over the last four-to-five years, have now reached critical mass and are growing faster than company average. We are very pleased with our progress in each of these businesses.” He adds, “A large portion of our business comes from North America and we think that the demand is healthy in North America. We continue to win business in North America. We continue to grow ahead of many of our industry peers both in North America and across the rest of the world.”
Commenting about Cognizant’s expanded share re-purchase program, D’Souza says, “We have a lot of confidence in our business going forward. We think that our share re-purchase program is a solid opportunity to return cash to shareholders. We are generating a significant amount of cash and the board of directors has approved an increase in the share repurchase program to demonstrate our confidence in our business and to prudently return cash to our shareholders.”
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