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Empresas y finanzas

Infosys Technologies Announces Results for the Quarter Ended September 30, 2008


    Infosys Technologies Ltd. (NASDAQ: INFY):

    Highlights

    Consolidated results for the quarter ended September 30, 2008

    • Second quarter revenues at $ 1,216 million, up 19% from the corresponding quarter last fiscal; in constant currency 19.5%
    • Earnings per American Depositary Share (ADS) increased to $ 0.56 from $ 0.48 in the corresponding quarter last fiscal; YoY growth was 16.7%
    • 40 new clients were added during the quarter by Infosys and its subsidiaries
    • Gross addition of 10,117 employees (net 5,927) for the quarter by Infosys and its subsidiaries
    • 100,306 employees as on September 30, 2008 for Infosys and its subsidiaries

    "We have revised our US dollar revenue guidance to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar," said S. Gopalakrishnan, CEO and Managing Director. "The challenging environment provides interesting opportunities for transformational service providers like us."

    Business outlook

    The company´s outlook (consolidated) for the quarter ending December 31, 2008 and for the fiscal year ending March 31, 2009, under International Financial Reporting Standards (IFRS), is as follows:

    Outlook under IFRS#

    Quarter ending December 31, 2008

    • Consolidated revenues are expected to be in the range of $ 1,175 million and $ 1,220 million; YoY growth of 8.4% - 12.6%; in constant currency 11.9% - 16.2%
    • Consolidated earnings per American Depositary Share are expected to be $ 0.57; YoY growth of 5.6%@

    Fiscal year ending March 31, 2009

    • Consolidated revenues are expected to be in the range of $ 4.72 billion and $ 4.81 billion; YoY growth of 13.1% - 15.2%; 16% - 18% in constant currency
    • Consolidated earnings per American Depositary Share@@ are expected to be $ 2.24; YoY growth of 10.3%

    # Exchange rates considered for major global currencies: AUD / USD 0.81; GBP / USD 1.86;

    Euro / USD 1.36

    @ Including tax reversal of $ 13 million for the quarter ended December 31, 2007. Excluding the tax reversal the YOY growth is expected to be 9.6%.

    @@ Including tax reversal of $ 7 million in fiscal 2009 and $ 31 million in fiscal 2008 respectively. Excluding the tax reversal, the earnings per share is expected to be $ 2.23 for the year ending March 31, 2009; YoY growth of 12.6%

    Expansion of services and significant projects

    Infosys launched ShoppingTrip360, an innovative solution for retailers and consumer packaged goods companies. Infosys´ patent–pending technology platform offers real–time visibility into shopper and shelf activity through a network of wireless sensor–based applications.

    Companies across the world continued to entrust Infosys with the responsibility of transforming their businesses, technology, and operations.

    We are developing Business Intelligence strategy and technology architecture for an international auto major. We are enabling a leading online digital photo service provider to improve its customer engagement through behavior and conversion analyses, and long–term customer value analytics.

    Clients partnered with Infosys to accomplish technology–led innovation. We are providing R&D services for a telecom equipment manufacturer. Infosys is involved in product development for an agri–engineering company, and is also re–engineering the client´s existing products. Infosys has been engaged by an auto major to develop a Capacity Management System to facilitate collaboration with its suppliers. A manufacturer of diesel engines sought our technology consulting services for its employee on–boarding project. A steel major consulted us to redefine part of its IT organization.

    Clients sought Infosys´ expertise to achieve operational excellence. A pharmaceutical major engaged Infosys to maintain applications in its manufacturing and enabling functions globally. For a provider of power and automation technologies, we are globally implementing Microsoft CRM. An eyewear major chose us as its development partner for SAP IS retail implementation. We helped a global automotive supplier in an end–to–end implementation and rollout of Oracle 11i. A chemicals company selected Infosys as its preferred supplier to provide architecture services, application optimization and performance improvement services around its Web Content Management applications. An auto major sought our services in process engineering, as well as deployment and maintenance of applications. Infosys is helping a financial services company improve its Balance Transfer platform. We have been engaged by a leading telecom service provider to assist in reinventing its IT organization.

    Infosys continued to grow in the emerging economies. We are providing best practice–based processes and a pricing model to a mining major that is looking to streamline its IT footprint. A petroleum company in the Middle East has engaged Infosys to streamline its HR business process and help its IT department in providing quality service to its users.

    "We benefited from the depreciation of the rupee against the US dollar during the quarter which was partially offset by the sharp appreciation of the US dollar against all other major currencies," said V. Balakrishnan, Chief Financial Officer. "Our liquidity position continues to be strong with cash and cash equivalents reaching US$ 1.9 billion."

    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 100,000 employees in over 50 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, 2008 and on Form 6–K for the quarter ended June 30, 2008. 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 Financial Statements in compliance with International Financial Reporting Standards (IFRS) for the six months ended September 30, 2008:

    Infosys Technologies Limited and subsidiaries

    Unaudited Consolidated Balance Sheets

    (Dollars in millions except share data)

        As of     September 30, 2008   March 31, 2008 ASSETS         Current Assets         Cash and cash equivalents   $1,886   $2,058 Available–for–sale financial assets   -   18 Trade receivables   753   824 Unbilled revenue   173   120 Prepayments and other assets   78   107 Total current assets   2,890   3,127 Non–current assets         Property, plant and equipment   949   1,022 Goodwill   147   174 Intangible assets   11   11 Deferred income tax assets   93   73 Income tax assets   32   55 Other non–current assets   47   45 Total non–current assets   1,279   1,380 Total assets   $4,169   $4,507 LIABILITIES AND EQUITY         Current Liabilities         Trade payables   $5   $12 Derivative financial instruments   78   29 Current income tax liabilities   112   101 Client deposits   6   1 Unearned revenue   84   71 Employee benefit obligations   4   25 Provisions   12   13 Other current liabilities   284   311 Total current liabilities   585   563 Non–current liabilities         Non–current liabilities   46   28 Equity         Share capital–Rs. 5 ($0.16) par value 600,000,000 equity shares authorized, issued and outstanding 572,499,855 and 571,995,758 as of September 30, 2008 and March 31, 2008, respectively   64   64 Share premium   663   655 Retained earnings   3,100   2,896 Other components of equity   (289)   301 Total equity   3,538   3,916 Total liabilities and equity   $4,169   $4,507

    Infosys Technologies Limited and subsidiaries

    Unaudited Consolidated Income Statements

    (Dollars in millions except share data)

        Three months ended   Six months ended   Year ended     September 30,   September 30,   March 31,     2008   2007   2008   2007   2008                       Revenues   $1,216   $1,022   $2,371   $1,950   $4,176 Cost of sales   691   591   1,388   1,160   2,453 Gross profit   525   431   983   790   1,723 Operating Expenses:                     Selling and marketing expenses   68   71   129   122   230 Administrative expenses   96   77   183   154   334 Total operating expenses   164   148   312   276   564 Operating profit   361   283   671   514   1,159 Other income (expense)   (28)   1   (46)   18   4 Finance income   43   37   89   82   171 Profit before income taxes   376   321   714   614   1,334 Income tax expense   56   48   86   76   171 Profit after tax   $320   $273   $628   $538   $1,163 Attributable to:                     Minority interest   -   -   -   -   - Equity holders   320   273   628   538   1,163 Net profit   $320   $273   $628   $538   $1,163 Earnings per equity share                     Basic ($)   0.56   0.48   1.10   0.95   2.04 Diluted ($)   0.56   0.48   1.10   0.94   2.04 Weighted average equity shares used in computing earnings per equity share                     Basic   569,592,198   568,376,262   569,479,023   568,376,262   568,564,740 Diluted   570,721,306   570,449,774   570,723,017   570,478,626   570,473,287

    Unaudited U.S.GAAP Financial Statements for the six months ended September 30, 2008:

    Infosys Technologies Limited and subsidiaries

    Unaudited Consolidated Balance Sheets

    (Dollars in millions except share data)

        As of     March 31, 2008   September 30, 2008     (1)     ASSETS         Current Assets         Cash and cash equivalents   $2,058   $1,886 Investments in liquid mutual fund units   18   - Trade accounts receivable, net of allowances   824   753 Unbilled revenue   120   173 Prepaid expenses and other current assets   107   78 Deferred tax assets   2   7 Total current assets   3,129   2,897 Property, plant and equipment, net   1,022   949 Goodwill   150   129 Intangible assets, net   25   20 Deferred tax assets   66   81 Advance income taxes   55   32 Other assets   45   47 Total Assets   $4,492   $4,155 LIABILITIES AND STOCKHOLDERS´ EQUITY         Current Liabilities         Accounts payable   $12   $5 Income taxes payable   101   112 Client deposits   1   6 Unearned revenue   71