Infosys crosses US$ 3 billion in revenues in the first nine months
Q3 revenues grew sequentially by 6.1%
Revenues expected to grow 35.0% - 35.2% in Fiscal 2008
Infosys Technologies (NASDAQ: INFY):
Highlights
Consolidated results for the quarter ended December 31, 2007
-- Third quarter revenues at $ 1,084 million, up 32.0% from the
corresponding quarter last fiscal
-- Earnings per American Depositary Share (ADS) increased to
$ 0.54(a) from $ 0.39 in the corresponding quarter last fiscal
-- 47 new clients were added during the quarter
-- Gross addition of 11,683 employees (net 8,100) for the quarter
-- 88,601 employees as on December 31, 2007
(a) Excluding tax reversal of US$ 13 million, EPS will be US$ 0.52
California wage settlement
The Company has voluntarily settled with the California Division
of Labor Standards Enforcement (DLSE) towards possible overtime
payment to certain employees in California for a total amount of $ 26
million. The payment pertains to the last three years and such
backwages will be paid to employees in due course.
Outlook for the quarter ending March 31, 2008 and the fiscal year
ending March 31, 2008
-- Consolidated revenues expected to be between $ 1,136 million
and $ 1,142 million for the quarter ending March 31, 2008 (YoY
growth of 31.6% - 32.3%) and between $ 4.17 billion and $ 4.18
billion for the fiscal year ending March 31, 2008 (YoY growth
of 35.0% - 35.2%)
-- Consolidated earnings per ADS expected to be $ 0.54 for the
quarter ending March 31, 2008; (YoY growth of 17.4%)(b) and
$ 2.02 for the fiscal year ending March 31, 2008; (YoY growth
of 32.0%)(c)
(b) Including tax reversal of US$ 29 mn for the quarter ended
March 31, 2007. Excluding the tax reversal the Earnings per ADS will
be US$ 0.54 and US$ 0.41 for quarter ending March 31 2008 and 2007
respectively; YoY growth of 31.7%
(c) Including tax reversal of US$ 25 mn in Fiscal 2008 and US$ 29
mn for Fiscal 2007. Excluding the tax reversal the Earnings per share
will be US$ 1.98 and US$ 1.48 for Fiscal 2008 and 2007 respectively;
YoY growth of 33.8%
Infosys Technologies Limited ("Infosys" or "the company") today
announced financial results for its third quarter ended December 31,
2007. Revenues for the quarter aggregated $ 1,084 million, up 6.07%
from $ 1,022 million for the quarter ended September 30, 2007.
"We see several opportunities for growth in the marketplace and
have concluded several multi-year, multi-million deals during the
quarter," said S. Gopalakrishnan, CEO and Managing Director. "We
believe that our ability to handle large, complex programs using the
Global Delivery Model provides a compelling value proposition to
global customers seeking efficiency in a challenging
macro-environment."
Infosys added 47 clients during the quarter and won repeat
business from existing clients.
Infosys entered into a multi-year multimillion-dollar contract
with a leading healthcare company to provide application services and
testing support for a critical business platform. Besides potential
cost savings of over $ 60 million for the client, the engagement
offers benefits such as portfolio integration, knowledge management
and a scalable support model. Infosys is also partnering with one of
the leading providers of specialized, comprehensive Health Care
Support solutions as well as another corporation that provides
clinical laboratory services.
A leading European bank selected Infosys as a preferred supplier
to reduce the cost of ownership of its application portfolio across
business lines. A top global brokerage sought to better manage its IT
budget with Infosys´ time-tracking database system. One of the world´s
largest asset managers sought Infosys´ help to understand and allocate
cost for its infrastructure services. A leading global bank used
Infosys´ expertise to build an application to mine and assimilate
distributed customer data. Infosys conducted an IT Effectiveness study
to improve processes and architecture for one of the world´s largest
investment banks.
"Cash and cash equivalents crossed US$ 2 billion," said V.
Balakrishnan, Chief Financial Officer. "We also crossed a significant
milestone reaching US$ 1 billion in net profits in the last twelve
months. The currency environment continues to be challenging."
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 88,000 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, within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, and
Section 21E of the U.S. Securities Exchange Act of 1934, as amended,
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 the
success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to sustain our previous levels
of profitability including on account of the appreciation of the Rupee
against the US Dollar, UK Pound and Euro, our ability to manage
growth, intense competition in information technology, business
process outsourcing and consulting 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 we have 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
Quarterly Report on Form 6-K for the quarters ended June 30, 2007,
September 30, 2007 and our other recent filings. These filings are
available at www.sec.gov. We may, from time to time, make additional
written and oral forward-looking statements, including statements
contained in our filings with the Securities and Exchange Commission
and our reports to shareholders. We do not undertake to update any
forward-looking statements that may be made from time to time by or on
our behalf.
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INFOSYS TECHNOLOGIES LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in millions except per share data)
----------------------------------------------------------------------
As of
--------------------------------
March 31, 2007 December 31, 2007
----------------------------------------------------------------------
(1) (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $1,403 $1,978
Investments in liquid mutual fund
units 6 35
Trade accounts receivable, net of
allowances 565 662
Unbilled revenue 74 136
Prepaid expenses and other current
assets 48 63
Deferred tax assets 2 3
--------------------------------
Total current assets 2,098 2,877
Property, plant and equipment, net 738 968
Goodwill 128 151
Intangible assets, net 20 28
Deferred tax assets 19 37
Advance income taxes 33 38
Other assets 37 45
--------------------------------
Total Assets $3,073 $4,144
--------------------------------
LIABILITIES AND STOCKHOLDERS´ EQUITY
Current Liabilities
Accounts payable $6 $8
Income taxes payable 4 76
Client deposits 1 3
Unearned revenue 72 94
Other accrued liabilities 272 326
--------------------------------
Total current liabilities 355 507
Non-current liabilities
Other non-current liabilities 1
Minority interests
Stockholders´ Equity
Common stock, $ 0.16 par value
600,000,000 equity shares authorized,
Issued and outstanding - 551,109,960
and 555,785,001 as of March 31, 2006
and September 30, 2006, respectively 64 64
Additional paid-in capital 692 702
Accumulated other comprehensive
income 90 365
Retained earnings 1,871 2,506
--------------------------------
Total stockholders´ equity 2,717 3,637
Total Liabilities And Stockholders´
Equity $3,073 $4,144
----------------------------------------------------------------------
(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 Nine months ended
December 31, December 31
-----------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------
Revenues $1,084 $821 $3,034 $2,227
Cost of revenues 629 468 1,789 1,280
-----------------------------------------------
Gross profit 455 353 1,245 947
-----------------------------------------------
Operating Expenses:
Selling and marketing
expenses 52 54 174 147
General and
administrative
expenses 89 64 243 183
Amortization of
intangible assets 2 1 6 2
-----------------------------------------------
Total operating
expenses 143 119 423 332
-----------------------------------------------
Operating income 312 234 822 615
Gain on sale of long-
term investment - - - 1
Other income, net 40 13 140 55
-----------------------------------------------
Income before income
taxes and minority
interest 352 247 962 671
Provision for income
taxes 42 29 118 78
-----------------------------------------------
Income before minority
interest 310 218 844 593
Minority interest - - - 2
-----------------------------------------------
Net income $310 $218 $844 $591
-----------------------------------------------
Earnings per equity
share(2)
Basic $0.54 $0.39 $1.49 $1.07
Diluted $0.54 $0.38 $1.48 $1.04
Weighted average
equity shares used in
computing earnings
per equity share(2)
Basic 568,512,968 554,200,798 568,421,831 552,043,540
Diluted 570,363,129 566,883,484 570,439,766 564,849,610
----------------------------------------------------------------------
(2) Adjusted for stock split
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