Infosys Technologies (Nasdaq: INFY) Announces Results for the Quarter Ended December 31, 2009
By Infosys Technologies Ltd., PRNEMonday, January 11, 2010
Q3 revenues sequentially grew by 6.8%
MYSORE, India, January 12 - Highlights
Consolidated results for the quarter ended December 31, 2009
Revenues were $1,232 million for the quarter ended December 31, 2009; QoQ
growth was 6.8%; YoY growth was 5.2%
- Net income after tax was $334 million for the quarter ended December
31, 2009; QoQ growth was 5.4%; YoY growth was 0.6%
- Earnings per American Depositary Share (ADS) was 0.59 for the quarter
ended December 31, 2009; QoQ growth was 5.4%; YoY growth of 1.7%
"Global economic recovery seems to be led by the U.S. and the Financial
Services," said S. Gopalakrishnan, CEO and Managing Director. "Even though IT
budgets are expected to be flat in 2010, offshore outsourcing is expected to
benefit from this recovery."
Business outlook
The company's outlook (consolidated) for the quarter ending March 31,
2010 and for the fiscal year ending March 31, 2010, under International
Financial Reporting Standards (IFRS), is as follows:
Outlook under IFRS*
Quarter ending March 31, 2010
- Consolidated revenues are expected to be in the range of $1,240 million
and $1,250 million; YoY growth of 10.6% to 11.5%
- Consolidated earnings per American Depositary Share is expected to be
$0.56; YoY growth nil
Fiscal year ending March 31, 2010
- Consolidated revenues are expected to be in the range of $4.75 billion
and $4.76 billion; YoY growth of 1.8% to 2.0%
- Consolidated earnings per American Depositary Share is expected to be
$2.26; YoY growth of 0.4%
* Exchange rates considered for quarter ending March 31, 2010 for major
global currencies: AUD / USD - 0.90; GBP / USD - 1.61; Euro / USD - 1.44
Expansion of services and significant projects
As in the last few quarters, our focus continues to be on building
strengths. Intellectual Property (IP)-based solutions, New Engagement Models
(NEMs) that offer flexible pricing and operational control to clients, and
the Global Delivery Model will play a significant role in defining our
successes.
During the third quarter, we launched Flypp(TM), an application platform
that enables mobile service providers to enhance customer experience with a
host of ready-to-use experiential applications across several devices. A
health insurance major bought our iTransform product suite that assists
clients in complying with the U.S. Federal Government's mandates on HIPAA
5010 and ICD 10 standards, efficiently and cost effectively. A Consumer
Packaged Goods (CPG) major bought the 'Procurement' module of our 'Supply
Chain Visibility' product suite to cut sourcing cycle times and leakages in
procurement spend through better monitoring, compliance and governance
mechanisms. One of the largest retailing companies selected us as a partner
in its Future Store Initiative to advance cutting-edge technologies and
innovative shopping concepts. We were chosen for our ShoppingTrip360
solution, an innovative managed service that offers retailers and CPG
companies insights into real-time shopper and shelf activity. A grocery
retailer in the U.K. partnered with us to develop a new multi-channel web
platform to bring about an integrated, wholesome online experience.
Clients across industries continue to entrust us with transformational
responsibilities. A leading provider of security testing software solutions
engaged us to engineer leading-edge penetrative testing products. We are
building a Patient Appointment Scheduling System for a provider of medical
laboratory tests and services. The system will allow a patient to schedule an
appointment at any of the company's 1,000-plus patient service centers. We
are helping a leading provider of virtualization, networking and
Software-as-a-Service (SaaS) technologies to design its architecture for
Master Data Management. A telecom service provider sought our help to build
and manage its online portals and enhance its online presence. We are working
with a communications major in the field of wireless 4G development. A
specialty retailer engaged us to develop a SaaS solution.
A manufacturer of language translation software engaged us as a Quality
Assurance (QA) partner to design, automate and test its next major release of
desktop products suite. A high tech major engaged us to set up a Center of
Excellence (CoE) with focus on multiple QA services for several critical
applications. An auto major engaged us to implement next-generation
Enterprise Resource Planning (ERP) software in its distribution business. A
leading turbo machinery manufacturer partnered with us to expand its business
through manufacturing engineering, manufacturing process standardization,
setting up of manufacturing facilities for turbo machinery remanufacturing.
"The rupee appreciated by 3.7% during the quarter," said V. Balakrishnan,
Chief Financial Officer. "We maintained our margins while our cash and cash
equivalents reached $3.1 billion."
Board of Directors
The Board has appointed Prof. Marti G. Subrahmanyam as the Lead
Independent Director effective January 12, 2010. Prof. Subrahmanyam will be
taking over the role from Mr. Deepak M. Satwalekar. Mr. Satwalekar will
continue to serve as an Independent Director and Chairman of the Audit
Committee. He is the first Lead Independent Director in India and was
appointed in May 2003.
"As the Lead Independent Director, Deepak played a vital role in
enhancing our corporate governance function, already a torchbearer in the
industry," said N.R. Narayana Murthy, Chairman of the Board and Chief Mentor.
"His dedication, insight and urge for excellence have contributed immensely
in taking our Board functions to the next level. We will cherish his
contributions which have been invaluable."
He added, "I am delighted to welcome Prof. Marti G. Subrahmanyam as the
Lead Independent Director. He's a very worthy successor to Deepak and we
eagerly look forward to continuing our success story with him."
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 109,000 employees in over 50 offices worldwide.
Infosys is part of the NASDAQ-100 Index and The Global Dow. 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, 2009 and on Form 6-K for the quarters ended June 30, 2009 and
September 30, 2009. 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 Interim Financial Statements prepared in compliance
with International Financial Reporting Standards (IFRS)
Infosys Technologies Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheet as of
(Dollars in millions except share data)
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December 31, 2009 March 31, 2009
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ASSETS
Current assets
Cash and cash equivalents $1,972 $2,167
Available-for-sale financial assets 1,133 -
Trade receivables 724 724
Unbilled revenue 173 148
Derivative financial instruments 16 -
Prepayments and other assets 117 81
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Total current assets $4,135 $3,120
Non-current assets
Property, plant and equipment 961 920
Goodwill 178 135
Intangible assets 15 7
Deferred income tax assets 136 88
Income tax assets 80 54
Other non-current assets 73 52
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Total non-current assets 1,443 1,256
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Total assets $5,578 $4,376
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LIABILITIES AND EQUITY
Current liabilities
Trade payables $3 $5
Derivative financial instruments - 22
Current income tax liabilities 154 115
Client deposits 3 1
Unearned revenue 133 65
Employee benefit obligations 30 21
Provisions 16 18
Other current liabilities 358 290
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Total current liabilities 697 537
Non-current liabilities
Deferred income tax liabilities 8 7
Employee benefit obligations 46 48
Other non-current liabilities 9 -
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Total liabilities 760 592
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Equity
Share capital - Rs. 5 ($0.16) par
value 600,000,000 equity shares
authorized, issued and outstanding
570,701,633 and 572,830,043 as of
December 31, 2009 and March 31,
2009, respectively 64 64
Share premium 685 672
Retained earnings 4,262 3,618
Other components of equity (193) (570)
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Total equity attributable to equity
holders of the company 4,818 3,784
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Total liabilities and equity $5,578 $4,376
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Infosys Technologies Limited and subsidiaries
Unaudited Condensed Consolidated Statement of Comprehensive Income
(Dollars in millions except share data)
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Three months ended Nine months ended
December 31, December 31,
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2009 2008 2009 2008
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Revenues $1,232 $1,171 $3,508 $3,542
Cost of revenues 700 661 2,005 2,049
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Gross profit 532 510 1,503 1,493
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Operating expenses:
Selling and marketing expenses 68 55 178 184
General and administrative
expenses 82 82 255 265
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Total operating expenses 150 137 433 449
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Operating profit 382 373 1,070 1,044
Other income 50 7 154 50
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Profit before income taxes 432 380 1,224 1,094
Income tax expense 98 48 260 134
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Net profit $334 $332 $964 $960
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Earnings per equity share
Basic ($) 0.59 0.58 1.69 1.69
Diluted ($) 0.59 0.58 1.69 1.68
Weighted average equity shares
used in computing earnings per
equity share
Basic 570,602,970 569,755,757 570,353,792 569,571,267
Diluted 571,183,310 570,449,069 571,039,216 570,650,033
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To view the Fact Sheet and Press Release with tables, please click on the
links below:
www.prnewswire.co.uk/xferdl?file=eYPcz4xF4W.nkwmJbOMatg
www.prnewswire.co.uk/xferdl?file=77x/u9yx2qIl49Z/6DiX.A
Contact
Investor Shekar Narayanan, India Sandeep Mahindroo, USA
Relations +91-(80)-4116-7744 +1-(646)-254-3133
shekarn@infosys.com sandeep_mahindroo@infosys.com
Media Sarah Vanita Gideon, India Peter McLaughlin, USA
Relations +91-(80)-4156-4998 +1-(213)-268-9363
Sarah_Gideon@infosys.com Peter_McLaughlin@infosys.com
Investor Relations: Shekar Narayanan, India, +91-(80)-4116-7744, shekarn at infosys.com, or Sandeep Mahindroo, USA, +1-646-254-3133, sandeep_mahindroo at infosys.com, or Media Relations: Sarah Vanita Gideon, India, +91-(80)-4156-4998, Sarah_Gideon at infosys.com, or Peter McLaughlin, USA, +1-213-268-9363, Peter_McLaughlin at infosys.com, all of Infosys Technologies Ltd.
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