Cognizant 1Q profit spikes as all business units show growth

But the company offered conservative guidance for the June quarter, and shares fell in premarket trading.

Net income for the three months ended March 31 rose to $101.9 million, or 34 cents per share, from $75.5 million or 25 cents per share, in the 2007 first quarter.

Excluding 4 cents in stock-based compensation expenses and one-time costs and gains, the company earned 38 cents per share. One-time items included an Indian tax on stock-based fringe benefits of $900,000.

Revenue rose 40 percent to $643.1 million, from $460.3 million last year.

Analysts polled by Thomson Financial, on average, expected profit of 33 cents per share, on revenue of $642.9 million. That estimate included stock option expenses. Analysts typically exclude one-time expenses.

The company said its healthcare, retail/manufacturing/logistics and other segments all grew 10 percent or more from the fourth quarter of 2007. European operations rose 12 percent from the December quarter.

In active premarket electronic trading, Cognizant Technology shares slid $2.35, or 7 percent, to $31.40, from their regular session close Tuesday at $33.75.