Cognizant 3Q Profit Rises 21 Pct On Higher Sales

TEANECK, N.J. (AP) — Information technology and outsourcing company Cognizant Technology Solutions Corp.'s on Tuesday said its third-quarter profit rose 21 percent as companies continued to seek its help cutting costs.

Results topped Wall Street estimates, and Cognizant issued guidance for the fourth quarter and the full year above analyst expectations, sending shares up in morning trading.

Cognizant said its net income rose to $136.6 million, or 45 cents per share, up from $112.8 million, or 38 cents per share, in the third quarter of 2008.

Revenue rose 16 percent to $853.5 million from $734.7 million last year.

Analysts polled by Thomson Reuters, on average, expected profit of 41 cents per share on revenue of $805.6 million.

President and CEO Francisco D'Souza said the company saw growth across all industry sectors, locations and service lines in the quarter. Clients who have sought Cognizant's help cutting costs are now using its consulting services to deal with fallout from the recession and new technological challenges, he said.