IT Firm’s Rev­enue Rises 0.3% in Q4

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

New Delhi: Cog­nizant Tech­nol­ogy So­lu­tions Cor­po­ra­tion’s fourth quar­ter rev­enue rose 0.3% se­quen­tially, and the com­pany said it would fo­cus on build­ing dig­i­tal ser­vices ca­pa­bil­ity through more ac­qui­si­tions and im­prove op­er­at­ing mar­gins in the next two years. It also ex­pects 8-10% rise in full year rev­enue from the $13.49 bil­lion in 2016.

“The time is right for us to ac­cel­er­ate the shift to dig­i­tal ser­vices and so­lu­tions to meet the grow­ing de­mands from our clients to trans­form their busi­ness mod­els in the face of the rapid busi­ness and tech­nol­ogy shifts dis­rupt­ing their in­dus­tries,” said Francisco D'Souza, chief ex­ec­u­tive of­fi­cer.

“To meet this op­por­tu­nity, we are evolv­ing our busi­ness model to fo­cus on ag­gres­sively scal­ing our dig­i­tal ca­pa­bil­i­ties, driv­ing ef­fi­cien­cies in our core busi­ness, and launch­ing a ro­bust cap­i­tal re­turn pro­gram,” he added.

The shift to dig­i­tal ser­vices and so­lu­tions and re­turn cap­i­tal to share­hold­ers, would in­clude “in­ten­si­fy­ing M&A ef­forts to ex­pand in­tel­lec­tual prop­erty, in­dus­try ex­per­tise, and tech­nol­ogy ca­pa­bil­i­ties, by fo­cus­ing on strate­gic tuck-in ac­qui­si­tions”.

Cog­nizant also said it is look­ing at im- prov­ing its non-GAAP op­er­at­ing mar­gins to 22% in 2019. The non-GAAP op­er­at­ing mar­gin for the quar­ter end­ing De­cem­ber 31, 2016 was 18.7%. The IT ser­vices com­pany met the lower end of its fourth quar­ter rev­enue fore­cast at $3.46 bil­lion. It had ex­pected rev­enue to be be­tween $3.45 bil­lion and $3.51 bil­lion. It also met the lower end of its full year rev­enue fore­cast at $13.49 bil­lion, and ex­pects full-year rev­enue for 2017 in the range of $14.56 bil­lion to $14.84 bil­lion.

Cog­nizant had a tough last year as it trimmed the top end of its full-year guid­ance thrice and dis­closed that it had made pay­ments in In­dia that fell foul of the US For­eign Cor­rupt Prac­tices Act.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.