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
6
18
Trade accounts receivable, net of
allowances
565
824
Unbilled revenue
74
120
Prepaid expenses and other current
assets
48
110
Deferred tax assets
2
2
-----------------------------
Total current assets
2,098
3,132
Property, plant and equipment, net
738
1,022
Goodwill
128
150
Intangible assets, net
20
25
Deferred tax assets
19
66
Advance income taxes
33
55
Other assets
37
42
-----------------------------
Total Assets
$3,073
$4,492
-----------------------------
LIABILITIES AND STOCKHOLDERS´ EQUITY
Current Liabilities
Accounts payable
$
6
$
13
Income taxes payable
4
100
Client deposits
1
1
Unearned revenue
72
71
Other accrued liabilities
272
386
-----------------------------
Total current liabilities
355
571
Non-current liabilities
Other non-current liabilities
1
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
64
Additional paid-in capital
692
718
Accumulated other comprehensive income
90
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
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
62
56
209
230
General and
administrative
expenses
66
91
249
334
Amortization of
intangible assets
1
2
3
8
-----------------------------------------------
Total operating
expenses
129
149
461
572
-----------------------------------------------
Operating income
237
329
852
1,151
Gain on sale of long
term investment
-
-
1
-
Other income, net
28
35
83
175
-----------------------------------------------
Income before income
taxes and minority
interest
265
364
936
1,326
Provision for income
taxes
6
53
84
171
-----------------------------------------------
Income before minority
interest
$259
$311
$852
$1,155
-----------------------------------------------
Minority interest
-
-
2
-
Net income
$259
$311
$850
$1,155
Earnings per equity
share
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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