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Cognizant Technology tops estimates

Cognizant Technology Solutions (Nasdaq: CTSH) beat analysts' targets for its fourth quarter on Tuesday. Net income and revenues both rose more than 70 percent compared to a year ago.

Shares in the maker of e-business software applications closed Monday's session down $0.50 to $46.50. The company also hurdled analyst targets for its third quarter. Cognizant provides applications maintenance and services for large corporations.

Teaneck, N.J.-based Cognizant reported earnings of $5.4 million, or 27 cents per diluted share, in the quarter, on revenues of $41.1 million. The results were two cents better than the 25 cents a share analysts' consensus estimate from First Call.

Fourth-quarter earnings and revenues both rose compared to the $3.1 million, or 15 cents per share, profit seen on revenues of $24.1 million in the fourth quarter of 1999.

The company said that e-business revenues grew to 36 percent of total revenues while application management revenues increased 70 percent.

Cognizant CFO Gordon Coburn attributed the strong earnings performance to expanded operating margins. He also said that the company generated $13 million in cash from operations in the quarter.

For the full fiscal year 2000, the company saw a 57 percent increase in net income year-over-year, reporting a profit of $17.7 million, or 87 cents per diluted share, as compared to $11.2 million, or 58 cents per diluted share in 1999. Full year earnings came out ahead of consensus estimates calling for a profit of 86 cents a share.

Revenue for the year jumped 54 percent over the year-ago period to $137.0 million, from $88.9 million in the prior year. Excluding Y2K-related gains, revenue for the year increased 82 percent.