( BW)(INFOSYS-TECHNOLOGIES)(INFY) Infosys Technologies Announces
Results for the Quarter Ended September 30, 2008
Business Editors
BANGALORE, India--(BUSINESS WIRE)--Oct. 10, 2008--Infosys
Technologies Ltd. (NASDAQ: INFY):
Q2 revenues grew by 19% year on year; constant currency 19.5%
Q2 revenues grew sequentially by 5.3%; constant currency 7.1%
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.
-0-
*T
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
September 30,
------------------------
2008 2007
----------------------------------------------------------------------
Revenues $1,216 $1,022
Cost of sales 691 591
------------------------
Gross profit 525 431
------------------------
Operating Expenses:
Selling and marketing expenses 68 71
Administrative expenses 96 77
------------------------
Total operating expenses 164 148
------------------------
Operating profit 361 283
Other income (expense) (28) 1
Finance income 43 37
------------------------
Profit before income taxes 376 321
Income tax expense 56 48
------------------------
Profit after tax $320 $273
------------------------
Attributable to:
Minority interest - -
Equity holders 320 273
------------------------
Net profit $320 $273
------------------------
Earnings per equity share
Basic ($) 0.56 0.48
Diluted ($) 0.56 0.48
Weighted average equity shares used in
computing earnings per equity share
Basic 569,592,198 568,376,262
Diluted 570,721,306 570,449,774
----------------------------------------------------------------------
Six months ended Year ended
September 30, March 31,
-----------------------------------
2008 2007 2008
----------------------------------------------------------------------
Revenues $2,371 $1,950 $4,176
Cost of sales 1,388 1,160 2,453
-----------------------------------
Gross profit 983 790 1,723
-----------------------------------
Operating Expenses:
Selling and marketing expenses 129 122 230
Administrative expenses 183 154 334
-----------------------------------
Total operating expenses 312 276 564
-----------------------------------
Operating profit 671 514 1,159
Other income (expense) (46) 18 4
Finance income 89 82 171
-----------------------------------
Profit before income taxes 714 614 1,334
Income tax expense 86 76 171
-----------------------------------
Profit after tax $628 $538 $1,163
-----------------------------------
Attributable to:
Minority interest - - -
Equity holders 628 538 1,163
-----------------------------------
Net profit $628 $538 $1,163
-----------------------------------
Earnings per equity share
Basic ($) 1.10 0.95 2.04
Diluted ($) 1.10 0.94 2.04
Weighted average equity shares
used in computing earnings per
equity share
Basic 569,479,023 568,376,262 568,564,740
Diluted 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 84
Other current liabilities 386 371
---------------------------------
Total current liabilities 571 578
Non-current liabilities
Other non-current liabilities 11 46
Stockholders' Equity
Common stock, Rs. 5 ($0.16) par
value 600,000,000 equity shares
authorized, issued and outstanding
571,995,758 and 572,499,855 as of
March 31, 2008 and September 30,
2008, respectively 64 64
Additional paid-in capital 718 728
Accumulated other comprehensive
income 311 (278)
Retained earnings 2,817 3,017
---------------------------------
Total stockholders' equity 3,910 3,531
---------------------------------
Total Liabilities And Stockholders'
Equity $4,492 $4,155
----------------------------------------------------------------------
(1) March 31, 2008 balances were obtained from the audited financial
statements
Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Statements of Income
(Dollars in millions except share data)
Three months ended Six months ended
September 30, September 30,
-----------------------------------------------
2007 2008 2007 2008
----------------------------------------------------------------------
Revenues $1,022 $1,216 $1,950 $2,371
Cost of revenues 591 690 1,160 1,387
-----------------------------------------------
Gross profit 431 526 790 984
-----------------------------------------------
Operating Expenses:
Selling and marketing
expenses 71 68 122 129
General and
administrative
expenses 77 96 154 183
Amortization of
intangible assets 2 3 4 5
-----------------------------------------------
Total operating
expenses 150 167 280 317
-----------------------------------------------
Operating income 281 359 510 667
Other income, net 38 15 100 43
-----------------------------------------------
Income before income
taxes 319 374 610 710
Provision for income
taxes 48 56 76 86
-----------------------------------------------
Net income $271 $318 $534 $624
-----------------------------------------------
Earnings per equity
share
Basic $0.48 $0.56 $0.94 $1.10
Diluted $0.48 $0.56 $0.94 $1.10
Weighted average
equity shares used in
computing earnings
per equity share
Basic 568,376,262 569,592,198 568,376,262 569,479,023
Diluted 570,449,774 570,462,045 570,478,084 570,470,898
----------------------------------------------------------------------
--30--
CONTACT: Infosys Technologies Ltd.
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
Bani Paintal Dhawan, India
+91 (80) 2852 2408
Bani_Dhawan@infosys.com
or
Peter Mclaughlin, USA
+1 (213) 268 9363
Peter_Mclaughlin@infosys.com
Disclaimer: Deze bekendmaking is officieel geldend in de originele
brontaal. Vertalingen zijn slechts als leeshulp bedoeld en moeten
worden vergeleken met de tekst in de brontaal welke als enige,
juridische geldigheid beoogt.
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