Selected Consolidated Financial Data The following table sets forth our selected consolidated historical financial data as of the dates and for the periods indicated. Our selected consolidated financial data set forth below as of December 31, 2004 and 2003 and for each of the three years in the period ended December 31, 2004 has been derived from the audited financial statements included elsewhere herein. Our selected consolidated financial data set forth below as of December 31, 2002, 2001 and 2000 and for each of the years ended December 31, 2001 and 2000 are derived from the audited financial statements not included elsewhere herein. Our selected consolidated financial information for 2004, 2003 and 2002 should be read in conjunction with the Consolidated Financial Statements and the Notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations” which are included elsewhere in this Annual Report. 44 Year Ended December 31, Y (in thousands, except per share data) 2004 2003 2002 2001 2000 Consolidated Statement of Operations Data: Revenues $ 586,673 $ 365,656 $ 208,657 $ 158,969 $ 122,758 Revenues - related party – 2,575 20,429 18,809 14,273 Total revenues 586,673 368,231 229,086 177,778 137,031 Cost of revenues 319,810 199,724 122,701 90,848 70,437 Gross profit 266,863 168,507 106,385 86,930 66,594 Selling, general and administrative expenses 132,796 84,259 53,345 44,942 35,959 Depreciation and amortization expense 16,447 11,936 7,842 6,368 4,507 Income from operations 117,620 72,312 45,198 35,620 26,128 Other income (expense), net: Interest income 4,389 2,128 1,808 2,501 2,649 Split-off costs – (2,010) (1,680) – – Impairment loss on investment – – – (1,955) – Other income (expense) – net 86 (199) (235) (767) (530) Total other income (expense) 4,475 (81) (107) (221) 2,119 Income before provision for income taxes 122,095 72,231 45,091 35,399 28,247 Provision for income taxes ( 21,852 ) (14,866) (10,529) (13,239) (10,564) Net income $ 100,243 $ 57,365 $ 34,562 $ 22,160 $ 17,683 Basic earnings per share $ 0.77 $ 0.46 $ 0.29 $ 0.19 $ 0.16 Diluted earnings per share $ 0.70 $ 0.42 $ 0.27 $ 0.18 $ 0.15 Weighted average number of common shares outstanding 130,990 125,011 118,479 114,102 111,389 Weighted average number of common shares and stock options outstanding 142,556 135,814 127,387 122,226 121,533 Consolidated Statement of Financial Position Data: Cash and cash equivalents $ 293,446 $ 194,221 $ 126,211 $ 84,977 $ 61,976 Working capital 338,937 220,572 134,777 96,679 61,988 Total assets 572,745 365,300 231,903 146,025 110,027 Due to related party – – – – 8 Stockholders’ equity 453,529 274,070 165,481 98,792 66,116 COGNIZANT ANNUAL REPORT 2004