Sunday, December 31, 2006

Cognizant finishes 2006 with an Excellent Growth

Rising demand for global outsourcing services pushed shares of Cognizant Technology Solutions Corp. up 55 percent in 2006, making the company one of the top five tech performers in the S&P 500 this year.

Cognizant provides offshore information technology and other business services, with centers in China, India and other locations worldwide.

Shares jumped in May after the company reported a 48 percent increase in profit, helped by higher demand for technology services across all industries. Customers in the media, telecom, financial services and health care industries contributed to the stronger-than-expected results.

Cognizant also issued full-year earnings guidance that beat Wall Street's expectations, then raised its outlook when reporting another blockbuster quarter in August.

The stock was selected in November to join the Standard & Poor's 500 index.

Also in November, the company said it would spend more than $200 million through 2008 to expand its India operations, adding new facilities in five cities _ Chennai, Coimbatore, Hyderabad, Kolkata and Pune _ and hiring more than 30,000 employees.

Shares of Cognizant traded at their lowest point on Jan. 18, touching $48.51 on the Nasdaq. The stock climbed as high as $82.49 on Dec. 12, before closing at $77.87 on Thursday, a full-year gain of $27.60, or 55 percent.

Source: Chron

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