Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data) 29 Revenues $586,673 $ 365,656 $ 208,657 Revenues-related party – 2,575 20,429 Total revenues 586,673 368,231 229,086 Cost of revenues 319,810 199,724 122,701 Gross profit 266,863 168,507 106,385 Selling, general and administrative expenses 132,796 84,259 53,345 Depreciation and amortization expense 16,447 11,936 7,842 Income from operations 117,620 72,312 45,198 Other income (expense), net: Interest income 4,389 2,128 1,808 Split-off costs (See Note 1) – (2,010) (1,680) Other income (expense), net 86 (199) (235) Total other income (expense)  4,475 (81) (107) Income before provision for income taxes 122,095 72,231 45,091 Provision for income taxes (21,852) (14,866) (10,529) Net income $100,243 $ 57,365 $ 34,562 Basic earnings per share (1) $ 0.77 $ 0.46 $ 0.29 Diluted earnings per share (1) $ 0.70 $ 0.42 $ 0.27 Weighted average number of common shares outstanding – Basic (1) 130,990 125,011 118,479 Dilutive effect of shares issuable as of period-end under stock option plans (1) 11,566 10,803 8,908 Weighted average number of common shares outstanding – Diluted (1) 142,556 135,814 127,387 Comprehensive Income: Net income $100,243 $ 57,365 $ 34,562 Foreign currency translation adjustments 5,649 4,185 (27) Total comprehensive income $105,892 $ 61,550 $ 34,535 Year Ended December 31, Y 2004 2003 2002 $^{(1)}$Restated to reflect 2-for-1 stock split effected by a 100% stock dividend paid on June 17, 2004. The accompanying notes are an integral part of the consolidated financial statements. COGNIZANT ANNUAL REPORT 2004