- Former Infosys President brings 20+ years of experience in
the consulting, process, and technology transformation space to CEO
role
- Stephen J. Rohleder appointed
Chair of the Board
- Leadership transition supports initiative to accelerate
growth
- Company updates fourth quarter and full-year 2022
guidance
TEANECK,
N.J., Jan. 12, 2023 /PRNewswire/ -- Cognizant
(Nasdaq: CTSH) today announced that its Board of Directors (the
"Board") has named Ravi Kumar S as CEO and a member of the Board,
effective immediately. Kumar succeeds Brian
Humphries in both roles. To facilitate a smooth transition,
Humphries will remain with the Company as a special advisor until
March 15, 2023.
Kumar joins Cognizant after a 20-year career at Infosys, where
he held various leadership roles, most recently serving as
President from January 2016 through
October 2022. In this role, he led
the Infosys Global Services Organization across all global industry
segments, driving digital transformation services, consulting
services, technology services, engineering services, data &
analytics, cloud and infrastructure, and enterprise package
applications service lines.
The Company also announced that Stephen
J. Rohleder, a member of Cognizant's Board since
March 2022, has been elected Chair of
the Board. Former Chair Michael
Patsalos-Fox will remain on the Board as an independent
director. Rohleder joined the Board in March
2022 as part of the Board's ongoing Board refreshment
process; during the last three years, the Board has added three new
independent directors.
Rohleder brings decades of experience overseeing operations,
developing strategy, counseling clients, and growing teams in the
technology space, gained from his 35-year tenure in senior roles
with Accenture, where he served as Group Chief Executive,
North America, Group Chief
Executive, Health and Public Service and Chief Operating Officer,
as well as his roles as Chairman and CEO of GTY Technology
Holdings.
Cognizant had previously announced that Kumar would join the
Company as President, Cognizant Americas. In connection with the
CEO transition, Cognizant also announced that Surya Gummadi has
been named President, Cognizant Americas. Gummadi, a 24-year
veteran of Cognizant, had held the role on an interim basis since
July 2022 and previously served as
SVP of Cognizant's Health Sciences business segment.
Leadership Commentary
"The Board is focused on positioning Cognizant to reaccelerate
growth and drive shareholder value," said Chair of the Board
Stephen J. Rohleder. "As a proven leader with deep experience
developing global talent and building a culture of success, we
believe Ravi is the right person to take Cognizant into its next
phase of growth. He brings world-class expertise in consulting,
process, and technology transformation as well as demonstrated
success building businesses. We are highly confident he can build
on Cognizant's portfolio of in-demand solutions, strong brand, and
significant international expansion opportunity to unlock enhanced
performance and growth."
Rohleder continued, "Brian was a resilient leader, providing a
steady hand as he steered the company through various challenges,
including a global pandemic. We thank Brian for his many
contributions to Cognizant, which have helped to position the
company to capture a large, growing market and fuel profitable
revenue growth. We believe now is the right time for new leadership
to fully capitalize on these opportunities."
"The Board also wants to thank Michael for his leadership during
his time as Board Chair. Michael's dedication to Cognizant,
including his unwavering commitment to our mission and our
shareholders and other stakeholders, has set a strong example for
me and the rest of the Board," Rohleder concluded.
Humphries said, "I am proud of our team's achievements during my
tenure as CEO. Our brand is more visible, our portfolio is
stronger, our client relationships are more consultative and we are
better aligned to high growth digital segments within our market.
The company is in a great position for success. It was an honor to
lead our talented associates and I wish Ravi and the leadership
team all the best for the future."
"I am honored to join Cognizant, a company I have long admired
for its dedicated client focus and its track record of innovation,"
said Kumar. "I look forward to working with Steve, the rest of the
Board, and the leadership team to capture the many opportunities
ahead. I have watched Cognizant fundamentally transform its
business, expanding its digital portfolio and capabilities,
strengthening client relationships and partnerships, and
meaningfully enhancing operational discipline. Cognizant is
well-positioned for growth, and I'm excited to unlock the Company's
significant potential for our employees, clients, investors, and
other stakeholders."
Additional Biographical Details about Ravi Kumar
Kumar has over 20 years of experience in the technology
consulting space, incubating new practice lines, driving large
transformational programs, and developing new business models
across industry segments. Based in New
York City, Kumar served as President at Infosys until
October 2022. In this role, he led
the Infosys Global Services Organization across all global industry
segments, driving digital transformation services, consulting
services, technology services, engineering services, data &
analytics, cloud and infrastructure, enterprise package
applications service lines. In addition, he led the Business
Process Management (BPM) Unit and was Chair of the Board of Infosys
BPM Ltd. He has overseen Infosys business operations in
India, Latin America, Japan and China. He has also overseen the Infosys Public
Services and Infosys Consulting Services Subsidiaries. In addition,
Kumar championed and pioneered Infosys' localization initiatives
and built technology and digital talent pools in US, Europe & Australia to drive the creation of new
Innovation and Digital Technology Hubs through collaboration with
clients, the local state governments and academic ecosystems.
Previously, Kumar was the Group Head for the Insurance, Healthcare,
and Cards and Payments unit at Infosys, where he drove client
services, demand generation, next-generation service offerings,
innovation, and a world-class delivery organization to support
clients. Kumar also led the Global Delivery organization in the
manufacturing industry group. Spanning a global clientele and other
new incubating engines, he built the global Oracle and CRM
practices for Infosys as well as played diverse roles across
organizations within the CRM space for Oracle Corporation, building
a next-generation customer relationship management practice at
Cambridge Technology Partners.
Kumar currently serves on the boards of directors of TransUnion,
where he is a member of the Mergers, Acquisitions and Integration
Committee and the Compensation Committee, and Digimarc Corporation,
where he serves on the Compensation and Talent Management Committee
and the Market Development Committee. Kumar also serves on the
Board of Governors of the New York Academy of Sciences and the
Board of Directors of the U.S. Chamber of Commerce.
Kumar earned his bachelor's degree in engineering from Shivaji
University and his M.B.A. from Xavier Institute of Management,
India.
Cognizant Provides 2022 Guidance Update and Schedules Fourth
Quarter 2022 Earnings Call
For 2022, the Company expects fourth quarter and full-year
revenue of approximately $4.8 billion
and $19.4 billion, respectively,
compared to prior expectations of $4.72-$4.77 billion
for the fourth quarter and $19.3
billion for the full year. This reflects a year-over-year
increase of approximately 1.3% (or 4.1% in constant
currency1) for the fourth quarter and growth of
approximately 5.0% (or 7.5% in constant currency) for full-year
2022.
Additionally, the Company now expects full-year 2022 Adjusted
Operating Margin2 of approximately 15.3%, compared to
prior guidance of 15.6%, and full-year 2022 Adjusted Diluted
EPS2 of approximately $4.38-$4.40,
compared to prior guidance of $4.43-$4.46. This
updated guidance includes a negative impact on Adjusted Operating
Margin of approximately 30 basis points and Adjusted Diluted EPS of
approximately $0.08 from the
impairment of certain capitalized costs related to a large
volume-based contract with a Health Sciences customer. The
impairment is principally driven by the Company's expectation of
lower volumes.
Fourth Quarter 2022 Earnings Call Details
Cognizant will announce results for the fourth quarter of 2022
on Thursday, February 2, 2023, after
market close.
Following the February
2nd release, Cognizant management will conduct a
conference call at 5:00 p.m.
(Eastern) to discuss operating performance for the quarter. To
participate in the conference call, domestic callers can dial
877-810-9510 and international callers can dial 201-493-6778 and
provide the following conference passcode: Cognizant Call.
The conference call will also be available live on the Investor
Relations section of the Cognizant website at
http://investors.cognizant.com. Please go to the website at least
15 minutes prior to the call to register and to download and
install any necessary audio software.
For those who cannot access the live broadcast, a replay will be
available by dialing (877) 660-6853 for domestic callers or (201)
612-7415 for international callers and entering 13732397 from two
hours after the end of the call until Thursday, February 16, 2023. The replay will also
be available at Cognizant's website http://investors.cognizant.com
for 60 days following the call.
1 Constant currency revenue growth is not a
measure of financial performance prepared in accordance with GAAP.
See "About Non-GAAP Financial Measures" for more information.
2 Adjusted Operating Margin and Adjusted Diluted
EPS are not measures of financial performance prepared in
accordance with GAAP. A full reconciliation of Adjusted Operating
Margin and Adjusted Diluted EPS guidance to the corresponding GAAP
measure on a forward-looking basis cannot be provided without
unreasonable efforts, as we are unable to provide reconciling
information with respect to unusual items at this time. Our updated
guidance for full-year 2022 Adjusted Diluted EPS includes an
expected adjustment of negative $0.01
related to the effect of non-operating foreign currency exchange
(gains) losses, pre-tax, an expected adjustment of positive
$0.07 related to the tax impact of
the non-operating foreign currency exchange (gains) losses, and an
adjustment of negative $0.07 related
to the recognition in the third quarter of 2022 of income tax
benefit related to an uncertain tax position. See "About Non-GAAP
Financial Measures" for more information at the end of this
release.
About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help
our clients modernize technology, reimagine processes and transform
experiences so they can stay ahead in our fast-changing world.
Together, we're improving everyday life. See how at
www.cognizant.com or @cognizant.
Forward-Looking Statements
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
the accuracy of which are necessarily subject to risks,
uncertainties, and assumptions as to future events that may not
prove to be accurate. These statements include, but are not limited
to, express or implied forward-looking statements relating to our
expectations regarding the implications to Cognizant of the change
in the chief executive officer, our strategy, competitive position
and opportunities in the marketplace, growth of our business, and
our anticipated financial performance. These statements are neither
promises nor guarantees, but are subject to a variety of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those contemplated
in these forward-looking statements. Existing and prospective
investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
Factors that could cause actual results to differ materially from
those expressed or implied include general economic conditions, the
competitive and rapidly changing nature of the markets we compete
in, the competitive marketplace for talent and its impact on
employee recruitment and retention, changes in the regulatory
environment, including with respect to immigration and taxes, and
the other factors discussed in our most recent Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission. Cognizant undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities law.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
GAAP, this press release includes references to the following
measures defined by the Securities and Exchange Commission as
non-GAAP financial measures: constant currency revenue growth,
Adjusted Operating Margin and Adjusted Diluted EPS. These non-GAAP
financial measures are not based on any comprehensive set of
accounting rules or principles and should not be considered a
substitute for, or superior to, financial measures calculated in
accordance with GAAP, and may be different from non-GAAP financial
measures used by other companies. In addition, these non-GAAP
financial measures should be read in conjunction with our financial
statements prepared in accordance with GAAP.
Adjusted Operating Margin and Adjusted Diluted EPS exclude
unusual items. Adjusted Diluted EPS excludes unusual items such as
the effect of recognition in the third quarter of 2022 of an income
tax benefit related to a specific uncertain tax position that was
previously unrecognized in our prior year consolidated financial
statements, net non-operating foreign currency exchange gains or
losses and the tax impact of all the applicable
adjustments. The income tax impact of each item excluded from
Adjusted Diluted EPS is calculated by applying the statutory rate
and local tax regulations in the jurisdiction in which the item was
incurred. Constant currency revenue growth is defined as revenues
for a given period restated at the comparative period's foreign
currency exchange rates measured against the comparative period's
reported revenues.
Management believes providing investors with an operating view
consistent with how we manage the Company provides enhanced
transparency into our operating results. For our internal
management reporting and budgeting purposes, we use various GAAP
and non-GAAP financial measures for financial and operational
decision-making, to evaluate period-to-period comparisons, to
determine portions of the compensation for our executive officers
and for making comparisons of our operating results to those of our
competitors. Accordingly, we believe that the presentation of our
non-GAAP measures can provide useful supplemental information to
our management and investors regarding financial and business
trends relating to our financial condition and results of
operations.
A limitation of using non-GAAP financial measures versus
financial measures calculated in accordance with GAAP is that
non-GAAP financial measures do not reflect all of the amounts
associated with our operating results as determined in accordance
with GAAP and may exclude costs that are recurring such as our net
non-operating foreign currency exchange gains or losses. In
addition, other companies may calculate non-GAAP financial measures
differently than us, thereby limiting the usefulness of these
non-GAAP financial measures as a comparative tool. We compensate
for these limitations by providing specific information regarding
the GAAP amounts excluded from our non-GAAP financial measures to
allow investors to evaluate such non-GAAP financial measures.
Investor Relations Contact:
Tyler Scott
VP, Investor Relations
+1 551-220-8246
Tyler.Scott@cognizant.com
Media Contact:
Jeff
DeMarrais
VP, Corporate Communications
+1 475-223-2298
Jeff.DeMarrais@cognizant.com
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SOURCE Cognizant Technology Solutions