(RTTNews) - Information technology and BPO services firm Cognizant Technology Solutions Corp. (CTSH: News ) reported Tuesday higher profit for the third quarter, driven by strong organic growth across all industry sectors, geographies and service lines. Adjusted earnings per share and revenues beat market projections. Further, the Teaneck, New Jersey-based company issued a fourth-quarter forecast and lifted fiscal 2009 guidance above Wall Street view.

Third-quarter net income was $136.57 million or $0.45 per share, compared to $112.83 million or $0.38 per share in the same quarter last year. The company noted that the results for both periods included stock-based compensation expense and income related to the repeal of the stock-based Indian fringe benefit tax.

On a non-GAAP basis, earnings for the quarter grew to $0.48 per share from $0.40 per share in the year-ago quarter. Earnings for the quarter also included the impact of $0.01 per share in net non-operating foreign currency exchange losses.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

In its preceding second quarter, Cognizant had reported GAAP net income of $141.3 million or $0.47 per share, and non-GAAP earnings of $0.50 per share, both higher than previous year.

Third-quarter revenues grew 16% to $853.49 million from prior year's $734.73 million, beating 21 Wall Street analysts' consensus revenue estimate of $805.10 million for the quarter. Sequentially, quarterly revenue rose 10% from $776.6 million recorded in the second quarter.
Cognizant was projecting third-quarter GAAP earnings of $0.40 per share, non-GAAP earnings of $0.44 per share, on revenues of at least $800 million.

In the quarter, income from operations rose to $161.78 million from last year's $142.63 million, while operating margin dropped to 19% from 19.4% in the previous year.

On an adjusted basis, non-GAAP income from operations went up to $172.37 million from $152.80 million a year ago, and non-GAAP operating margin was 20.2%, above the company's targeted range of 19% to 20%, but below prior year's margin of 20.8%.

Commenting on the results, Francisco D'Souza, President and Chief Executive Officer of Cognizant, said, "We experienced strong organic growth across all industry sectors, geographies and service lines this quarter. The sequential revenue increase of $76.9 million is the largest in the history of the company. Our constant focus on customer service and reinvesting in our business continues to generate industry-leading results."

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