SOFTWARE giant Cognizant reported 24- per cent jump in net profit at $ 371.9 million for the second quarter ended June 30 on Wednesday as against $ 300.4 million in the year- ago period, but the New Jersey- headquartered company disappointed on fullyear guidance revenue by lowering it to, at least, 14 per cent from 16.5 per cent earlier.
Cognizant, which follows the January- December fiscal, also expanded its stock repurchase programme by $ 500 million to $ 2 billion. Revenue for the second quarter rose by 16.5 per cent to $ 2.52 billion from $ 2.16 billion. The results are on GAAP basis.
Chief executive officer Francisco D'Souza said, " Due to weakness at certain clients and longer- than- anticipated sales cycles for certain large integrated deals, we are adopting a more conservative stance for the remainder of the year and revising our 2014 revenue guidance to growth of, at least, 14 per cent over the prior year." Third quarter revenue is expected to be between $ 2.55 and $ 2.58 billion Outsourcing services increased 1.5 per cent sequentially and 11.9 per cent from April- June quarter a year ago. " We closed the quarter with 1,242 active customers and the number of accounts we consider to be strategic increased by seven. This brings our total number of strategic clients to 257," chief financial officer Karen McLoughlin said.