Cognizant Technology Solutions Corporation Class A (NASDAQ:CTSH) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
The Demand Environment
Rod Bourgeois – Sanford C. Bernstein & Company: One quick clarification and then a question on the demand environment. In your Q1 guidance, can you just clarify if there is any acquisition revenue content in that? Then I guess the big question. Can you just give us an update on the client budget closing process and more specifically as budgets are being finalized, what is the pace of deal ramp ups as new deals get started in the calendar year to set you up for your important Q2. Are you seeing a good pace of deal ramp ups this year as you set up for the important Q2? That would be very helpful.
Karen McLoughlin – CFO: Rod, this is Karen. I’ll take the first part of that around the guidance for Q1 and then I’ll turn it over to Gordon and Frank to add some color on the demand environment. In terms of the guidance for Q1, there is less than $10 million, obviously the (Medco) acquisition closed in Q4 and that’s small, obviously $15 million incremental for the full year, that’s a couple of million dollars in Q1. Then we expect the C1 acquisition to close late in the quarter. So in total the two will be less than $10 million for the quarter.
Gordon Coburn – President: Rod, on your question of the pattern of demand and ramp up, we are pleased with what we’re seeing. Budgets are – clients’ budgets are tracking the way we want. When we look at the momentum of stuff that is kicking off, how we think went – how we come out of Q1 for the important Q2, I think you’re highlighting important – it is tracking the way we’d like to see it at this point of the year.