Is Cognizant Technology’s Growth Sustainable?
Cognizant Technology claims to bend over backwards for its customers, even when it doesn’t have to. The proof is in the pudding as the company shows the results to back this claim up. It’s the same “fanatical support” mantra that makes Rackspace Hosting an official Rule Breaker. Given the sterling customer focus and lengthy record of success, I’m going with a long-term ‘outperform’.
Is Cognizant Technology’s Growth Sustainable?
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Rackspace Hosting Reports Fourth Quarter 2010 Results
For the quarter ended December 31, 2010:
* Net revenue of $214.7 million grew 26.7% year-over-year and 7.5% from Q3 2010
* Adjusted EBITDA (1) of $72.0 million grew 28.7% year-over-year and 5.2% from Q3 2010
* Achieved adjusted EBITDA margin of 33.5%, up from 33.0% year-over-year and down from 34.3% in Q3 2010
* Net income of $13.5 million grew 49.9% year-over-year and 14.6% from Q3 2010
* Generated $5.6 million of Adjusted Free Cash Flow for the quarter and $34.2 million for the 2010 year

Rackspace Hosting Reports Third Quarter 2010 Results
For the quarter ended September 30, 2010:
• Net revenue of $199.7 million grew 23.0% year-over-year and 6.6% from Q2 2010
• Adjusted EBITDA (1) of $68.5 million grew 33.2% year-over-year and 10.1% from Q2 2010
• Achieved adjusted EBITDA margin of 34.3%, up from 31.7% year-over-year and 33.2% in Q2 2010
• Net income of $11.8 million grew 55.3% year-over-year and 5.5% from Q2 2010
• Generated $11.7 million of Adjusted Free Cash Flow for the quarter and $28.6 million for the first nine months of 2010
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