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Cognizant Technology Solutions Management Discusses Q2 2012 Results - Earnings Call Transcript

Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risk and uncertainties as described in the company's earnings release and other filings with the SEC.

I would now like to turn the call over to Francisco D'Souza. Please go ahead.

Francisco D'Souza

Thank you, David, and good morning, everyone. Thank you for joining us. This morning, Cognizant released second quarter results, and I am once again very pleased with our performance. Revenue grew to $1.795 billion, a 5% sequential increase and a 21% increase over the same quarter last year. Our non-GAAP operating margin remained at the top of our guided range at 20%. We achieved these results in spite of headwinds from the unexpected and significant depreciation in European currencies that has occurred since we last spoke with you.

Our performance is also particularly notable against the backdrop of a tenuous global recovery that has shown further signs of weakness over the last 3 months. European volatility persists. GDP forecasts have been cut across developed and developing economies, and a looming fiscal cliff in the United States prompts a cautious investment environment.

Yet amidst this turmoil, demand for our services remains strong. We continue to capture market share as reflected by another quarter of industry-leading revenue growth. Clients continue to turn to us not only for the operational improvements in efficiency and effectiveness that they have always known us to deliver but increasingly, to help them reinvent their business models in the face of secular industry changes, changing demographics and a new stack of social, mobile, analytics and cloud technologies.

This quarter, we closed a number of significant transformational engagements, including ING U.S. and Phillips. In both examples, clients embraced our unique value proposition that combines domain expert consultants, intimate on-the-ground client engagement teams, proven large-scale program governance expertise and a robust global delivery network. Gordon will speak to these engagements in more detail shortly.

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