Highlights - Third Quarter 2011
• Quarterly revenue rose to $1.601 billion, up 31.6% from the year-ago quarter and 7.8% sequentially.
• Quarterly diluted EPS on a GAAP basis was $0.73, compared to $0.66 in the year-ago quarter.
• Quarterly diluted EPS on a non-GAAP basis, which excludes stock-based compensation expense, was $0.80, compared to $0.69 in the year-ago quarter.
• Net headcount addition for the quarter exceeded 12,000, which included approximately 4,000 employees from the CoreLogic India acquisition.

Revenue for the third quarter of 2011 rose to $1.601 billion, up 31.6% from $1.217 billion in the third quarter of 2010. GAAP net income was $227.1 million, or $0.73 per diluted share, compared to $203.7 million, or $0.66 per diluted share, in the third quarter of 2010. Diluted earnings per share on a non-GAAP basis was $0.80. GAAP operating margin for the quarter was 18.3%. Excluding stock-based compensation expense of $24.5 million, non-GAAP operating margin was 19.8%, within the Company's targeted 19-20% range. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.

"Cognizant has delivered another strong quarter of industry leading revenue growth with non-GAAP operating margins within our target range. Growth during the quarter was again broad-based across our portfolio of industries, services and geographies," said Francisco D'Souza, President and CEO. "In spite of persistent macro-economic uncertainties, clients throughout the world continue to invest thoughtfully and strategically in their businesses and are directing investments toward building agility to drive the dual mandates of operational efficiency and business transformation. Cognizant's continued investments across multiple service horizons help address these dual mandates and drive superior business value regardless of the economic environment."

202011 Outlook - Fourth Quarter and Full Year

The Company is providing the following guidance:
• Fourth quarter 2011 revenue anticipated to be at least $1.66 billion.
• Fourth quarter 2011 diluted EPS expected to be $0.76 on a GAAP basis and $0.82 on a non-GAAP basis, which excludes $0.06 of estimated stock-based compensation expense.
• Fiscal 2011 revenue expected to be at least $6.11 billion, up at least 33% compared to 2010.
• Fiscal 2011 diluted EPS expected to be $2.83 on a GAAP basis, and $3.05 on a non-GAAP basis, which excludes $0.22 of estimated stock-based compensation expense.
• EPS guidance excludes the impact of any future non-operating foreign currency exchange gains or losses.

"We are delighted with the on-going success of our recruitment and retention practices as we strive to remain an employer of choice in our industry. This is reflected in our continued success in attracting the best talent globally, while maintaining some of the lowest attrition numbers in the industry," said Gordon Coburn, Chief Financial and Operating Officer. "In addition, we stepped up our share repurchase program by spending over $163 million to repurchase shares during the quarter, reflecting confidence in our ability to generate strong cash flows."