Cognizant announces 2-for-1 stock split & share repurchase

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Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of global IT and business process outsourcing services, today announced that its Board of Directors has declared a two-for-one stock split on its capital stock in the form of a stock dividend. Stockholders of record as of October 1, 2007 will be entitled to one additional share of common stock for each share held on the record date. The stock dividend distribution is expected to occur on or about October 16, 2007, and it is anticipated that the company's Class A Common Stock will begin trading on a post-split basis the business day following the distribution date.

 

In addition, the Cognizant Board of Directors authorized a share repurchase program of up to $100 million of the Company's common stock over the next 12 months.

 

Repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18. The timing of repurchases and the exact number of shares of common stock to be purchased will be determined by the Company's management, in its discretion, and will depend upon market conditions and other factors. The program will be funded using the Company's cash on hand and cash generated from operations. The program may be extended, suspended or discontinued at any time.

 

"The stock split recapitalization and share repurchase program underscore the Board's confidence in the fundamentals of our business and the Company's future prospects," said Francisco D'Souza, President and Chief Executive Officer of Cognizant. "With over $750 million of cash and short-term investments on our balance sheet, we are well positioned to continue to capitalize on the robust demand environment for our expanding range of services." 

 

Sourced From: Cognizant