Infosys Technologies Announces Results for the Quarter and Year Ended March 31, 2008

15/04/2008 - 10:40

Fiscal 2009 revenues expected to grow 19% - 21%; to reach $ 5 billion

Reports fiscal 2008 revenues of $ 4.18 billion; YoY growth of 35%

Infosys Technologies Ltd. (NASDAQ: INFY):

Highlights

Consolidated results for the quarter ended March 31, 2008

-- Fourth quarter revenues at $ 1,142 million, up by 32.3%

from the corresponding quarter last fiscal

-- Earnings per American Depositary Share (ADS)(a) increased

to $ 0.55 from $ 0.46 in the corresponding quarter last

fiscal; YoY growth of 19.6%

-- 40 new clients were added during the quarter by Infosys

and its subsidiaries

-- Gross addition of 5,947 employees (net 2,586) for the

quarter by Infosys and its subsidiaries

-- 91,187 employees as on March 31, 2008 for Infosys and its

subsidiaries

-- Special Dividend of Rs. 20 per ADS (equivalent to $ 0.50

per ADS at the prevailing exchange rate of Rs. 40.02 per

US$) and a final dividend Rs. 7.25 per ADS (equivalent to

$ 0.18 per ADS at the prevailing exchange rate of Rs.

40.02 per US$). The dividends are payable on the ADSs

outstanding as on record date, at the prevailing exchange

rate on the payment date and are subject to approval by

the shareholders.

-- The Company´s current financial policy is to pay dividends

up to 20% of net profits. The Board has decided to

increase the dividend pay-out ratio to up to 30% of net

profits effective fiscal 2009.

(a)The tax provision for quarter ended March 31, 2008 and fiscal
2008 includes a tax reversal of $ 5 million and $ 30 million.
Excluding this the earnings per share for the quarter and year ended
March 31, 2008 would have been $ 0.54 and $ 1.98 resulting in a YOY
growth of 31.7% and 33.8% respectively.

Outlook for the quarter ending June 30, 2008 and fiscal 2009

Quarter ending June 30, 2008

-- Consolidated revenues are expected to be in the range of

US$ 1,142 million and US$ 1,145 million; YoY growth of

23.1% - 23.4%

-- Consolidated earnings per American Depositary Share(b) are

expected to be US$ 0.52; YoY growth of 18.2%

Fiscal year ending March 31, 2009

-- Consolidated revenues are expected to be in the range of

US$ 4.97 billion and US$ 5.05 billion; YoY growth of 19.0%

- 21.0%

-- Consolidated earnings per American Depositary Share(b) are

expected to be between US$ 2.31 and US$ 2.35; YoY growth

of 16.7% - 18.7%

(b)Excluding tax reversal of US$ 5 million and US$ 30 million for
the quarter and year ended March 31, 2008 respectively

"Our Global Delivery Model, combined with our consulting and
solution capabilities, provides a strong platform for customers
seeking efficiencies in their IT spend," said S. Gopalakrishnan, CEO
and Managing Director. "Thus, while there could be short-term
challenges due to global economic uncertainties, we as a company see
significant growth opportunities in the medium to long term."

Market leaders across industry verticals continued to leverage
Infosys´ solutions and services to transform their businesses and
compete effectively in a dynamic business environment.

Leading manufacturers are partnering with Infosys to improve their
competitiveness. A top carmaker is consolidating its contact centers
with Infosys´ expertise. A manufacturer of aerostructures is
leveraging Infosys´ engineering services. For a leading automotive
supplier, Infosys is implementing a next-generation services business
platform built on Siebel and Oracle Fusion technologies. Infosys is
advising an automobile manufacturer to transform its end-customer
experience by developing its contact center consolidation strategy.

A data storage supplier has sought Infosys´ advice to redesign its
website to improve brand awareness. A US agribusiness and food company
has signed up Infosys for supply chain management, global trade
management and procurement. An automotive equipment manufacturer has
engaged Infosys to set up a distributed workflow management system to
reduce operational costs.

A leading online community is leveraging Infosys´ Web 2.0
expertise to redesign its website for improved effectiveness. A power
equipment manufacturer is using Infosys´ help to migrate its legacy
data systems.

Infosys is performing multiple business capability improvement
initiatives for a global services company. A leading public safety
organization used Infosys´ expertise for database consolidation and
localization and an oil and gas industry leader has chosen Infosys as
a strategic partner to meet its enterprise IT needs.

Growth in new markets was strong. In the Middle East, Infosys
defined the IT strategy and roadmap for the smelter operations of an
aluminum producer and defined and designed a world-class QA framework
for the IT organization of a transit authority.

Infosys is delivering a complete set of IT Infrastructure managed
services to a multi-brand retail leader in the US and helping a global
logistics leader define its application landscape and create a roadmap
for future IT programs.

"We crossed a significant milestone reaching US$ 1 billion in net
profits during the year. We also have successfully maintained our
margins during the year, despite an 11% appreciation in the rupee,"
said V. Balakrishnan, Chief Financial Officer. "Our special dividend
payment is to celebrate the achievement of the US$ 1 billion net
income milestone and is in line with our desire to balance the cash
required in the business with that of enhancing returns to our
shareholders."

About the company

Infosys Technologies Ltd. (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. Infosys
creates these solutions for its clients by leveraging its domain and
business expertise along with a complete range of services. 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 91,000 employees in over 40 offices
worldwide. Infosys is part of the NASDAQ-100 Index. For more
information, visit www.infosys.com.

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, 2007 and on Form 6-K for the quarters
ended June 30, 2007, September 30, 2007 and December 31, 2007. 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.

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Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Balance Sheets

(Dollars in millions except per share data)
----------------------------------------------------------------------

As of

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

March 31, 2007 March 31, 2008
----------------------------------------------------------------------

(1)
ASSETS
Current Assets
Cash and cash equivalents

$1,403

$2,058
Investments in liquid mutual fund units

18
Trade accounts receivable, net of

allowances

565

824
Unbilled revenue

120
Prepaid expenses and other current

assets

110
Deferred tax assets

-----------------------------
Total current assets

2,098

3,132
Property, plant and equipment, net

738

1,022
Goodwill

128

150
Intangible assets, net

25
Deferred tax assets

66
Advance income taxes

55
Other assets

-----------------------------
Total Assets

$3,073

$4,492

-----------------------------
LIABILITIES AND STOCKHOLDERS´ EQUITY
Current Liabilities
Accounts payable

13
Income taxes payable

100
Client deposits

1
Unearned revenue

71
Other accrued liabilities

272

386

-----------------------------
Total current liabilities

355

571

Non-current liabilities
Other non-current liabilities

11
Minority interests

-
Stockholders´ Equity
Common stock 600,000,000 equity shares

authorized, Issued and outstanding -

571,209,862 and 571,995,758 as of March

31, 2007 and March 31, 2008

respectively

64
Additional paid-in capital

692

718
Accumulated other comprehensive income

311
Retained earnings

1,871

2,817

-----------------------------
Total stockholders´ equity

2,717

3,910

-----------------------------
Total Liabilities And Stockholders´

Equity

$3,073

$4,492

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

(1) March 31, 2007 balances were obtained from audited financial

statements
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Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Statements of Income

(Dollars in millions except per share data)
----------------------------------------------------------------------

Three months ended

Year ended

March 31

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

2007

2008

2007

2008

(Audited)
----------------------------------------------------------------------
Revenues

$863

$1,142

$3,090

$4,176
Cost of revenues

497

664

1,777

2,453

-----------------------------------------------
Gross profit

366

478

1,313

1,723

-----------------------------------------------
Operating Expenses:
Selling and marketing

expenses

209

230
General and

administrative

expenses

249

334
Amortization of

intangible assets

-----------------------------------------------
Total operating

expenses

129

149

461

572

-----------------------------------------------
Operating income

237

329

852

1,151
Gain on sale of long

term investment

-
Other income, net

175

-----------------------------------------------
Income before income

taxes and minority

interest

265

364

936

1,326
Provision for income

taxes

171

-----------------------------------------------
Income before minority

interest

$259

$311

$852

$1,155

-----------------------------------------------
Minority interest

-
Net income

$259

$311

$850

$1,155
Earnings per equity

Basic

$0.46

$0.55

$1.53

$2.03

Diluted

$0.45

$0.54

$1.50

$2.02
Weighted average

equity shares used in

computing earnings

per equity share

Basic

559,944,338 568,993,467 554,018,739 568,564,740

Diluted

569,893,498 570,156,602 566,110,582 570,368,975
----------------------------------------------------------------------
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