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Earnings Calls: 
Cognizant Technology Solutions First Quarter Earnings Call
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 4:57 PM EDT May 09 2008


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The provider of IT and business process outsourcing services reported a 40% growth in revenue to $643.1 million as the firm sees demand for its services across a range of industries, geographic markets and solution offerings. As a result, income rose 35% to $102 million or 34 cents. The investments made in broadening the service offerings, building deep domain expertise and advanced consulting and analytics capabilities position the firm well to capitalize on these needs.


Investors Question and Answers

 
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Sequential Earnings Growth | Quarterly Earnings by Year | Quarterly Earnings Growth by Year

Source: Company filings    Q1:March  Q2:June  Q3:September  Q4:December
 
Adam Frisch (UBS): The majority of your strategic client base that has always meant to be kind of a secret sauce here for the continued growth. Where are you in that maturity cycle or your key client?

Gordon Coburn: This is part of what is a core part of the story, because of the range of services that people want to do offshore, keeps expanding. Now infrastructure management, business process outsourcing, the higher end consultants, clients that in theory should have matured by now, still are not maturing, because we can tap additional budget pool.

George Price (Stifel Nicolaus): Is there anything else pressuring revenue outside of financial services going into the second quarter?

Gordon Coburn: The primary thing is financial services. We had a little bit conservatism on other areas.

George Price (Stifel Nicolaus): On pricing, what are you seeing competitors doing?

Gordon Coburn: A few people always ask for concessions and lower prices, yes, that happen for us 10 years, but have we seen anything that changes might view on where pricing will end up for the year, no change in the price application.
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