Bangalore: Nasdaq-listed Cognizant Technology Solutions Corp. for the second consecutive quarter bested its own guidance and beat rival Wipro Ltd by earning $1.601 billion in revenue for the September quarter. The company’s revenue grew 7.8 % sequentially and 31.6 % year-on-year.
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Cognizant had guided for 5.7 % growth in revenue to $1.57 billion in the three months, its third quarter, on a sequential basis.
For the same period, which is Wipro’s second quarter, Wipro’s information technology (IT) services business earned revenue of $1.472 billion, a sequential growth of 4.6 % and 18% year on year.
Cognizant’s net income stood at $227 million, with GAAP (generally accepted accounting principles) operating margin at 18.3 %, while non-GAAP operating margin, excluding a stock-based compensation expense of $ 24.5 million, stood at 19.8 %. Wipro’s operating margin for the period was 20%.
Wipro does not separately provide net income for the IT business, which is 75 % of its total revenue. Wipro’s total net income for the period was $265 million on revenue of $1.85 billion.
For its fourth (December) quarter, Cognizant expects revenue to be at least $1.66 billion, with total fiscal 2011 revenues (it follows a calendar year fiscal) at $6.11 billion, up by 33 % compared to 2010.
Wipro has guided for a 2 % to 4 % revenue increase for its December quarter, expecting to make $1.5 billion to $1.53 billion.
The numbers clearly indicate that once the fiscal years are completed, Cognizant can begin to be called India’s third largest IT services vendor. While Cognizant is headquartered in New Jersey in the United States, it had its origins in Chennai with Dun and Bradstreet, and most of its 130,000 employees are based in the country.