The firm’s full-year web profit declined by 24 per cent to $1.39 billion towards $1.84 billion final yr whereas income remained flat at $16.65 billion towards $16.78 billion final yr.
The New Jersey headquartered firm mentioned that It’s full-year 2021 income is anticipated to be within the vary of $17.6-$18.1 billion, at a development of 5.5 per cent-8.5 per cent or 4.0-7.0 per cent in fixed foreign money phrases.
The decline in income and profit within the fourth quarter was as a result of affect of an anticipated exit from a buyer engagement and the exit from sure content material companies, the corporate mentioned.
Cognizant made a proposal to settle and exit a big buyer engagement within the monetary companies phase in Continental Europe. The supply included a proposed one-time fee and forgiveness of sure receivables. As a results of this supply, within the fourth quarter the corporate noticed a discount in income of $107 million and noticed extra bills of $33 million, primarily associated to the impairment of long-lived property.
“Having strengthened our portfolio, and anticipating the exit of a large financial services engagement, we enter 2021 reinvigorated by our growing commercial momentum, investments in our future, and our vision to become the preeminent technology services partner to clients globally,” mentioned CEO Brian Humphries.
Financial Services which accounts for 31.2 per cent of the corporate’s revenues declined 11.1 per cent pushed by declines in each banking and insurance coverage. Healthcare which accounts for 30.3 per cent of revenues grew 4 per cent year-on-year pushed by development in each healthcare and life sciences.