Infosys Technologies (nasdaq: Infy) Announces Results For The Quarter Ended December 31, 2009

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12th January 2010, 10:01pm - Views: 1069






Science Information Technology Infosys Technologies Ltd. 2 image












MEDIA RELEASE PR37841


Infosys Technologies (Nasdaq: INFY) Announces Results for the Quarter ended

December 31, 2009


MYSORE, Jan. 12 /PRNewswire-AsiaNet/ --


               Q3 revenues sequentially grew by 6.8%

    

    Highlights


    Consolidated results for the quarter ended December 31, 2009


    Revenues were $1,232 million for the quarter ended December 31, 2009; QoQ 

growth was 6.8%; YoY growth was 5.2%

    - Net income after tax was $334 million for the quarter ended December 

      31, 2009; QoQ growth was 5.4%; YoY growth was 0.6%

    - Earnings per American Depositary Share (ADS) was 0.59 for the quarter   

      ended December 31, 2009; QoQ growth was 5.4%; YoY growth of 1.7% 



    "Global economic recovery seems to be led by the U.S. and the Financial 

Services," said S. Gopalakrishnan, CEO and Managing Director. "Even though IT 

budgets are expected to be flat in 2010, offshore outsourcing is expected to 

benefit from this recovery." 


    Business outlook


    The company's outlook (consolidated) for the quarter ending March 31, 2010 

and for the fiscal year ending March 31, 2010, under International Financial 

Reporting Standards (IFRS), is as follows:


    Outlook under IFRS*


    Quarter ending March 31, 2010

    - Consolidated revenues are expected to be in the range of $1,240 million 

      and $1,250 million; YoY growth of 10.6% to 11.5% 

    - Consolidated earnings per American Depositary Share is expected to be 

      $0.56; YoY growth nil 



    Fiscal year ending March 31, 2010

    - Consolidated revenues are expected to be in the range of $4.75 billion 

      and $4.76 billion; YoY growth of 1.8% to 2.0% 

    - Consolidated earnings per American Depositary Share is expected to be 

      $2.26; YoY growth of 0.4%



    * Exchange rates considered for quarter ending March 31, 2010 for major 

global currencies: AUD / USD - 0.90; GBP / USD - 1.61; Euro / USD - 1.44


    Expansion of services and significant projects


    As in the last few quarters, our focus continues to be on building 

strengths. Intellectual Property (IP)-based solutions, New Engagement Models 

(NEMs) that offer flexible pricing and operational control to clients, and the 

Global Delivery Model will play a significant role in defining our successes.


    During the third quarter, we launched Flypp(TM), an application platform 

that enables mobile service providers to enhance customer experience with a 

host of ready-to-use experiential applications across several devices. A health 

insurance major bought our iTransform product suite that assists clients in 

complying with the U.S. Federal Government's mandates on HIPAA 5010 and ICD 10 

standards, efficiently and cost effectively. A Consumer Packaged Goods (CPG) 

major bought the 'Procurement' module of our 'Supply Chain Visibility' product 

suite to cut sourcing cycle times and leakages in procurement spend through 

better monitoring, compliance and governance mechanisms. One of the largest 

retailing companies selected us as a partner in its Future Store Initiative to 

advance cutting-edge technologies and innovative shopping concepts. We were 

chosen for our ShoppingTrip360 solution, an innovative managed service that 

offers retailers and CPG companies insights into real-time shopper and shelf 

activity. A grocery retailer in the U.K. partnered with us to develop a new 

multi-channel web platform to bring about an integrated, wholesome online 

experience.


    Clients across industries continue to entrust us with transformational 

responsibilities. A leading provider of security testing software solutions 

engaged us to engineer leading-edge penetrative testing products. We are 

building a Patient Appointment Scheduling System for a provider of medical 

laboratory tests and services. The system will allow a patient to schedule an 

appointment at any of the company's 1,000-plus patient service centers. We are 

helping a leading provider of virtualization, networking and 

Software-as-a-Service (SaaS) technologies to design its architecture for Master 

Data Management. A telecom service provider sought our help to build and manage 

its online portals and enhance its online presence. We are working with a 

communications major in the field of wireless 4G development. A specialty 

retailer engaged us to develop a SaaS solution.


    A manufacturer of language translation software engaged us as a Quality 

Assurance (QA) partner to design, automate and test its next major release of 

desktop products suite. A high tech major engaged us to set up a Center of 

Excellence (CoE) with focus on multiple QA services for several critical 

applications. An auto major engaged us to implement next-generation Enterprise 

Resource Planning (ERP) software in its distribution business. A leading turbo 

machinery manufacturer partnered with us to expand its business through 

manufacturing engineering, manufacturing process standardization, setting up of 

manufacturing facilities for turbo machinery remanufacturing.


    "The rupee appreciated by 3.7% during the quarter," said V. Balakrishnan, 

Chief Financial Officer. "We maintained our margins while our cash and cash 

equivalents reached $3.1 billion."


    Board of Directors


    The Board has appointed Prof. Marti G. Subrahmanyam as the Lead Independent 

Director effective January 12, 2010. Prof. Subrahmanyam will be taking over the 

role from Mr. Deepak M. Satwalekar. Mr. Satwalekar will continue to serve as an 

Independent Director and Chairman of the Audit Committee. He is the first Lead 

Independent Director in India and was appointed in May 2003. 


    "As the Lead Independent Director, Deepak played a vital role in enhancing 

our corporate governance function, already a torchbearer in the industry," said 

N.R. Narayana Murthy, Chairman of the Board and Chief Mentor. "His dedication, 

insight and urge for excellence have contributed immensely in taking our Board 

functions to the next level. We will cherish his contributions which have been 

invaluable."


    He added, "I am delighted to welcome Prof. Marti G. Subrahmanyam as the 

Lead Independent Director. He's a very worthy successor to Deepak and we 

Science Information Technology Infosys Technologies Ltd. 3 image

eagerly look forward to continuing our success story with him."


    About Infosys Technologies Ltd.


    Infosys (Nasdaq: INFY) defines, designs and delivers IT-enabled business 

solutions that help Global 2000 companies win in a Flat World. These solutions 

focus on providing strategic differentiation and operational superiority to 

clients. With Infosys, clients are assured of a transparent business partner, 

world-class processes, speed of execution and the power to stretch their IT 

budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys 

has over 109,000 employees in over 50 offices worldwide. Infosys is part of the 

NASDAQ-100 Index and The Global Dow. For more information, visit 



    Safe Harbor 


    Certain statements in this release concerning our future growth prospects 

are forward-looking statements, which involve a number of risks and 

uncertainties that could cause actual results to differ materially from those 

in such forward-looking statements. The risks and uncertainties relating to 

these statements include, but are not limited to, risks and uncertainties 

regarding fluctuations in earnings, our ability to manage growth, intense 

competition in IT services including those factors which may affect our cost 

advantage, wage increases in India, our ability to attract and retain highly 

skilled professionals, time and cost overruns on fixed-price, fixed-time frame 

contracts, client concentration, restrictions on immigration, industry segment 

concentration, our ability to manage our international operations, reduced 

demand for technology in our key focus areas, disruptions in telecommunication 

networks or system failures, our ability to successfully complete and integrate 

potential acquisitions, liability for damages on our service contracts, the 

success of the companies in which Infosys has made strategic investments, 

withdrawal of governmental fiscal incentives, political instability and 

regional conflicts, legal restrictions on raising capital or acquiring 

companies outside India, and unauthorized use of our intellectual property and 

general economic conditions affecting our industry. Additional risks that could 

affect our future operating results are more fully described in our United 

States Securities and Exchange Commission filings including our Annual Report 

on Form 20-F for the fiscal year ended March 31, 2009 and on Form 6-K for the 

quarters ended June 30, 2009 and September 30, 2009. These filings are 

available at www.sec.gov. Infosys may, from time to time, make additional 

written and oral forward-looking statements, including statements contained in 

the company's filings with the Securities and Exchange Commission and our 

reports to shareholders. The company does not undertake to update any 

forward-looking statements that may be made from time to time by or on behalf 

of the company.





    Unaudited Condensed Interim Financial Statements prepared in compliance 

    with International Financial Reporting Standards (IFRS) 


    Infosys Technologies Limited and subsidiaries


    Unaudited Condensed Consolidated Balance Sheet as of 


    (Dollars in millions except share data)

    ---------------------------------------------------------------------

                                      December 31, 2009    March 31, 2009

    ---------------------------------------------------------------------

    ASSETS 

    Current assets                                     

    Cash and cash equivalents                    $1,972            $2,167

    Available-for-sale financial assets           1,133                 -

    Trade receivables                               724               724

    Unbilled revenue                                173               148

    Derivative financial instruments                 16                 -

    Prepayments and other assets                    117                81

                                      -----------------    --------------

    Total current assets                         $4,135            $3,120

    Non-current assets                                 

    Property, plant and equipment                   961               920

    Goodwill                                        178               135

    Intangible assets                                15                 7

    Deferred income tax assets                      136                88

    Income tax assets                                80                54

    Other non-current assets                         73                52

                                      -----------------    --------------

    Total non-current assets                      1,443             1,256

                                      -----------------    --------------

    Total assets                                 $5,578            $4,376

                                      -----------------    --------------

    LIABILITIES AND EQUITY                             

    Current liabilities                                

    Trade payables                                   $3                $5

    Derivative financial instruments                  -                22

    Current income tax liabilities                  154               115

    Client deposits                                   3                 1

    Unearned revenue                                133                65

    Employee benefit obligations                     30                21

    Provisions                                       16                18

    Other current liabilities                       358               290

                                      -----------------    --------------

    Total current liabilities                       697               537

    Non-current liabilities                            

    Deferred income tax liabilities                   8                 7

    Employee benefit obligations                     46                48

    Other non-current liabilities                     9                 -

                                      -----------------    --------------

    Total liabilities                               760               592

                                      -----------------    --------------

    Equity                                             

    Share capital - Rs. 5 ($0.16) par

     value 600,000,000 equity shares

     authorized, issued and outstanding

     570,701,633 and 572,830,043 as of

     December 31, 2009 and March 31,

     2009, respectively                              64                64

    Share premium                                   685               672

    Retained earnings                             4,262             3,618

    Other components of equity                     (193)             (570)

                                      -----------------    --------------

    Total equity attributable to equity

     holders of the company                       4,818             3,784

                                      -----------------    --------------

    Total liabilities and equity                 $5,578            $4,376

    ---------------------------------------------------------------------



    Infosys Technologies Limited and subsidiaries


    Unaudited Condensed Consolidated Statement of Comprehensive Income  


    (Dollars in millions except share data)

    --------------------------------------------------------------------------

                                    Three months ended      Nine months ended

                                        December 31,           December 31, 

                               -----------------------------------------------

                                      2009        2008        2009        2008

    --------------------------------------------------------------------------

Science Information Technology Infosys Technologies Ltd. 4 image

    Revenues                        $1,232      $1,171      $3,508      $3,542

    Cost of revenues                   700         661       2,005       2,049

                               -----------------------------------------------

    Gross profit                       532         510       1,503       1,493

                               -----------------------------------------------

    Operating expenses:                         

    Selling and marketing expenses      68          55         178         184

    General and administrative

     expenses                           82          82         255         265

                               -----------------------------------------------

    Total operating expenses           150         137         433         449

                               -----------------------------------------------

    Operating profit                   382         373       1,070       1,044

    Other income                        50           7         154          50

                               -----------------------------------------------

    Profit before income taxes         432         380       1,224       1,094

    Income tax expense                  98          48         260         134

                               -----------------------------------------------

    Net profit                        $334        $332        $964        $960

                               -----------------------------------------------

    Earnings per equity share                   

       Basic ($)                      0.59        0.58        1.69        1.69

       Diluted ($)                    0.59        0.58        1.69        1.68

    Weighted average equity shares

     used in computing earnings per

     equity share 

       Basic                   570,602,970 569,755,757 570,353,792 569,571,267

       Diluted                 571,183,310 570,449,069 571,039,216 570,650,033

    --------------------------------------------------------------------------




    To view the Fact Sheet and Press Release with tables, please click on the 

links below: 




    http://www.prnewswire.co.uk/xferdl?file=77x/u9yx2qIl49Z/6DiX.A




    Contact


    Investor    Shekar Narayanan, India     Sandeep Mahindroo, USA 

    Relations   +91 (80) 4116 7744          +1 (646) 254 3133   

                shekarn@infosys.com         sandeep_mahindroo@infosys.com



    Media       Sarah Vanita Gideon, India  Peter McLaughlin, USA

    Relations   +91 (80) 4156 4998          +1 (213) 268 9363

                Sarah_Gideon@infosys.com    Peter_McLaughlin@infosys.com




SOURCE  Infosys Technologies Ltd.


    CONTACT: Investor Relations: Shekar Narayanan, India, +91 (80) 4116 7744, 

shekarn@infosys.com, or Sandeep Mahindroo, USA, +1-646-254-3133, 

sandeep_mahindroo@infosys.com, or Media Relations: Sarah Vanita Gideon, India, 

+91 (80) 4156 4998, Sarah_Gideon@infosys.com, or Peter McLaughlin, USA, 

+1-213-268-9363, Peter_McLaughlin@infosys.com, all of Infosys Technologies Ltd.



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