Cognizant announces two-for-one stock split

CHENNAI: The Board of Directors of Cognizant Technology Solutions has declared a two-for-one stock split on its capital stock in the form a stock dividend.

A press release from the company said stockholders of record as of October 1, 2007 would be entitled to one additional share of common stock for each share held on the record date.
   
The stock dividend distribution was expected to occur on or about October 16 next and it was anticipated that the company's Class A Common Stock will begin trading on a post-split basis on the business day following the distribution date, the release said.

Also, the board has authorised a share repurchase programme of up to $100 million of the company's common stock over the next 12 months, it said.

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 programme may be extended, suspended or discontinued at any time, the release said.

'The stock split recapitalisation 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 balancesheet, we are well positioned to ontinue to capitalize on the robust demand environment for our expanding range of services." he added