Infosys Technologies (NASDAQ: INFY) Announces Results for the Quarter Ended December 31, 2010

By Infosys Technologies Ltd, PRNE
Wednesday, January 12, 2011

Q3 Revenues Grew by 28.7% Year on Year; Sequentially Grew by 6.0%

BANGALORE, India, January 13, 2011 - Highlights

Consolidated results under IFRS for the quarter ended December 31, 2010

    - Revenues were $1,585 million for the quarter ended December 31, 2010;
      QoQ growth was 6.0%; YoY growth was 28.7%
    - Net income after tax was $397 million for the quarter ended
      December 31, 2010; QoQ growth was 6.1%; YoY growth was 18.9%
    - Earnings per American Depositary Share (ADS) was 0.69 for the quarter
      ended December 31, 2010; QoQ growth was 6.2%; YoY growth was 16.9%
    - 40 clients were added during the quarter by Infosys and its
    - Gross addition of 11,067 employees (net addition of 5,311) for the
      quarter by Infosys and its subsidiaries
    - 1,27,779 employees as on December 31, 2010 for Infosys and its

"The weaker economic recovery in developed markets coupled with high
unemployment and risk of sovereign default could impact industry growth,"
said S. Gopalakrishnan, CEO and Managing Director. "We are closely working
with our clients as they fine tune their strategies for the future."

Business outlook

The company's outlook (consolidated) for the quarter ending March 31,
and for the fiscal year ending March 31, 2011, under International
Financial Reporting Standards (IFRS), is as follows:

Outlook under IFRS - consolidated#

Quarter ending March 31, 2011##

    - Revenues are expected to be in the range of $1,601 million and $1,617
      million; YoY growth of 23.5% to 24.8%
    - Earnings per American Depositary Share (EPADS) is expected to be in the
      range of $0.69 and $0.70; YoY growth of 13.1% to 14.8%

Fiscal year ending March 31, 2011###

    - Revenues are expected to be in the range of $6.04 billion and $6.06
      billion; YoY growth of 25.7% to 26.1%
    - Earnings per American Depositary Share (EPADS) is expected to be in the
      range of $2.60 to $2.61;YoY growth of 13.0% to 13.5%

# Exchange rates considered for major global currencies: AUD / USD -
1.02; GBP / USD - 1.55; Euro / USD - 1.34

## Excluding the income from the sale of our investment in OnMobile
Systems, Inc. of USD 11mn in fiscal 2010, the EPADS growth is expected to be
in the range of 16.9% to 18.6%

### Excluding the income from the sale of our investment in OnMobile
Systems, Inc. of USD 11mn in fiscal 2010, the EPADS growth is expected to be
in the range of 14.0% to 14.5%

Expansion of services and significant projects

We have been increasing our global footprint and diversifying into new
areas. We invested in research on new products and services which have been
successfully adopted and implemented by our clients.


Our solutions have been galvanizing business for our existing and new
clients, helping them transform and diversify.

A multi-national retailer in Europe selected us to define its global
e-commerce road map and develop strategies to transform its online operations
and become a multi-channel retailer. We helped one of the leading grocery
retailers in the UK with its strategic workforce management program,
resulting in better scheduling and planning processes. We partnered with a
cosmetics and beauty products company to design, develop and deploy a Product
Lifecycle Management (PLM) system to transform the conceptualization and
management of a key product segment.

We developed an enterprise-wide mobility strategy, road map and
governance model to help a North America-based paper and building products
company to prioritize mobile opportunities. A global provider of
content-based workflow solutions selected us to deliver a complex business
transformation program and implement new generation business systems.

For a global consumer electronics brand, we helped design a scalable and
efficient engineering support model for its cloud-based services. A UK-based
telecom service provider engaged us to transform its network and services for
trading markets to an advanced Voice over Internet Protocol (VoIP) network.
We helped an international voice and satellite service provider transform its
internal IT system to enhance employee productivity and flexibility.

We were selected as a strategic partner by an airline company for an IT
effectiveness and strategic transformational program. A provider of air and
ocean freight forwarding services engaged us to program manage a large
multi-year, multinational rollout of a custom global freight forwarding
platform. A global automotive company selected us for a strategic engagement
to develop a vision for its North American consumer channels, integrating all
aspects of customer information.


We continue to implement our clients' operational requirements,
delivering faster time to market and higher return on investment (ROI).

A global consumer electronics brand engaged us to develop a load
simulation tool, enabling cost savings through better server capacity
planning and utilization. The same client engaged us to create a supply chain
platform to unify business processes. A global hi-tech computer systems and
services major selected us as its partner for the global implementation of an
HR platform, replacing legacy HR systems.

We helped an international perfume and flavor chemical producer evaluate
a global sample management system that enables access to relevant information
and faster decision-making by harmonizing lab management and sampling
processes. We helped a global leader in copper and nickel mining business
migrate its plant information systems to Windows 7 platform and offer
production support, improving performance and compliance.

We were selected by a leading automotive Original Equipment Manufacturer
(OEM) as the single supplier for all development projects, consolidating the
work under a shared services structure. We were selected as one of the
preferred partners for global sourcing by an automobile manufacturer from
Europe. A leading agricultural equipments company selected us to implement
Microsoft Enterprise Project Management (EPM) software to streamline, track
and improve ROI for planned investments in plant expansion and R&D projects.

A US-based independent natural gas and oil producer engaged us to develop
add-on components for its products for improved data access and management.
One of the world's biggest oil companies engaged us for a program on data
management services in the Exploration and Production (E&P) and drilling
domain. A large public utilities company in the US selected us to implement
Oracle Outage Management System and Oracle Work and Asset Management System.
A US-based global provider of oilfield services engaged us to implement Human
Resource Management System (HRMS) and Employee Learning Management (ELM)
applications, successfully integrating its disparate HR and learning systems
into one global platform.

One of the largest pharmaceutical companies selected us for support and
maintenance of business applications and platforms for 16 countries in
Europe. A global semiconductor manufacturer engaged us to conduct a
full-scale Customer Relationship Management (CRM)
implementation. A world leading provider of professional information
solutions engaged us for its HR transformation journey with the
implementation of PeopleSoft 9.0 modules. A US-based credit card issuer and
commercial bank selected us to perform functional testing services for two
major programs to enable quick ramp-up of resources.


Our robust innovative practices continue to augur well with clients.

A leading aerospace supplier extended its relationship with us to manage
the complete design and analysis of subsystems for its major aircraft
programs. This engagement will reduce product development cost and time, and
enhance productivity. We are working with a global aircraft manufacturer to
develop a unique radio-frequency identification (RFID) based experience
theater for their customers. Another global aircraft manufacturer engaged us
in aircraft wing structure and system integration design for a large
commercial aircraft program.

We are designing and developing a digital mail platform for a document
and mail solutions company to provide its customers an option for digital
delivery of transaction statements, direct mail and catalogs. A global
provider of professional information solutions engaged us to develop a
clinical information resource that delivers quick, trusted answers to
clinical questions at the point-of-care.

For a global software company, we are developing a platform to identify,
evaluate and enable external influencers who can impact its product sales. A
global consumer electronics brand partnered with us to develop a mobile
application that enhances customer shopping experiences in retail stores by
offering next-generation retail experience. We developed a common unified
content platform for a US-based internet services company to enhance
monetization through improved content relevance. A US-based networking
solutions company partnered with us to develop, test and sustain its new
unified communications gateway.

A hospitality software company engaged us to help internationalize its
software products to address the needs of global markets across the United
, Europe and Asia. One of the world's leading agricultural
biotechnology corporations selected us to build a collaboration solution and
an integrated content and knowledge management platform.


As on December 31, 2010, cash and cash equivalents, including investments
in available-for-sale financial assets and certificates of deposits was
US$3.6 bn (US$3.1 bn as on December 31, 2009)

"Uncertainties related to sustainability of the global economic recovery
could create greater currency volatility in the near future," said V.
Balakrishnan, Chief Financial Officer. "Our focus will continue to be on
high-quality growth balancing both the revenue growth and margins."

Board of Directors

The Board of Directors, today appointed Mr. R Seshasayee as an Additional
Director of the company with immediate effect. He will hold office up to the
date of the Annual General Meeting, when his appointment as a director will
be placed for the approval of the shareholders.

Mr. Seshasayee is the Managing Director of Ashok Leyland Limited. A
Chartered Accountant, he began his career with Hindustan Lever in 1971,
joined Ashok Leyland in 1976, and became Executive Director in 1983, Deputy
Managing Director in 1993, and Managing Director in 1998.

Welcoming Mr. Seshasayee, Mr. N. R. Narayana Murthy, Chairman and Chief
Mentor, said, "Mr. Seshasayee is a rare corporate leader who brings the best
of leadership ideas, governance and ethics. I am honored to welcome him to
our board."

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 1,27,000 employees in over 50 offices worldwide.
Infosys is part of the NASDAQ-100 Index and The Global Dow. For more
information, visit

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, fluctuations in foreign exchange rates,
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 or expiration 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, 2010 and on Form 6-K for the
quarters ended June 30, 2010 and September 30, 2010. These filings are
available at 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 Consolidated Interim Financial Statements
prepared in compliance with IAS 34, Interim Financial Reporting

Infosys Technologies Limited and subsidiaries

Unaudited Condensed Consolidated Balance Sheets as of

         (Dollars in millions except share data)

                                  December      March
                                  31, 2010   31, 2010
    Current assets
    Cash and cash
     equivalents                    $3,314     $2,698
     financial assets                    3        561
    Investment in
     certificates of deposit           238        265
    Trade receivables                  969        778
    Unbilled revenue                   219        187
    Derivative financial
     instruments                        10         21
    Prepayments and other
     current assets                    186        143
    Total current assets             4,939      4,653

    Non-current assets
    Property, plant and
     equipment                       1,057        989
    Goodwill                           184        183
    Intangible assets                   11         12
     financial assets                    6          8
    Deferred income tax
     assets                             73         78
    Income tax assets                  164        148
    Other non-current assets           124         77
    Total non-current assets         1,619      1,495
    Total assets                    $6,558     $6,148

    Current liabilities
    Trade payables                      $6         $2
    Current income tax
     liabilities                       182        161
    Client deposits                      5          2
    Unearned revenue                   128        118
    Employee benefit
     obligations                        28         29
    Provisions                          18         18
    Other current
     liabilities                       424        380
    Total current
     liabilities                       791        710

    Non-current liabilities
    Deferred income tax
     liabilities                         3         26
    Employee benefit
     obligations                        55         38
    Other non-current
     liabilities                        14         13
    Total liabilities                  863        787

    Share capital-Rs. 5
     ($0.16) par value
     600,000,000 equity
     shares authorized,
     issued and outstanding
     571,296,093 and
     570,991,592, net of
     2,833,600 treasury
     shares each as of
     December 31, 2010 and
     March 31, 2010,
     respectively                       64         64
    Share premium                      699        694
    Retained earnings                4,892      4,611
    Other components of
     equity                             40         (8)
    Total equity
     attributable to equity
     holders of the company          5,695      5,361
    Total liabilities and
     equity                         $6,558     $6,148

Infosys Technologies Limited and subsidiaries

Unaudited Consolidated Statements of Comprehensive Income

                                (Dollars in millions except share data)

                             Three months ended         Nine months ended
                                December 31,               December 31,
                            ------------------          ------------------
                            2010          2009          2010          2009
                            ----          ----          ----          ----
    Revenues              $1,585        $1,232        $4,439        $3,508
    Cost of sales            906           700         2,561         2,005
                             ---           ---         -----         -----
    Gross profit             679           532         1,878         1,503
                             ---           ---         -----         -----
    Selling and
     expenses                 88            68           244           178
     expenses                112            82           319           255
                             ---           ---           ---           ---
    Total operating
     expenses                200           150           563           433
                             ---           ---           ---           ---
    Operating profit         479           382         1,315         1,070
    Other income,
     net                      65            50           175           154
                             ---           ---           ---           ---
    Profit before
     income taxes            544           432         1,490         1,224
    Income tax
     expense                 147            98           393           260
                             ---           ---           ---           ---
    Net profit              $397          $334        $1,097          $964
                            ----          ----        ------          ----

    Fair value
     changes on
     sale financial
     assets, net of
     tax effect                -             -            (1)            -
     differences on
     operations               38           151            49           377
                             ---           ---           ---           ---
    Total other
     income                  $38          $151           $48          $377
                             ---          ----           ---          ----
     income                 $435          $485        $1,145        $1,341
                            ----          ----        ------        ------
    Owners of the
     company                $397          $334        $1,097          $964
     interest                  -             -             -             -
                             ---           ---           ---           ---
                            $397          $334        $1,097          $964
                            ----          ----        ------          ----
    Owners of the
     company                $435          $485        $1,145        $1,341
     interest                  -             -             -             -
                             ---           ---           ---           ---
                            $435          $485        $1,145        $1,341
                            ----          ----        ------        ------

    Earnings per
     equity share
       Basic ($)            0.69          0.59          1.92          1.69
       Diluted ($)          0.69          0.59          1.92          1.69
    Weighted average
     equity shares
     used in
     earnings per
     equity share
       Basic         571,246,801   570,602,970   571,138,078   570,353,792
       Diluted       571,380,888   571,183,310   571,358,432   571,039,216
       -------       -----------   -----------   -----------   -----------

Fact Sheet -

Earnings -


    Investor Relations
               Avishek Lath, India          Sandeep Mahindroo, USA
               +91(80)4116-7744             +1-646-254-3133

    Media Relations
               Sarah Vanita Gideon, India   Peter McLaughlin, USA
               +91(80)4156-4998             +1-213-268-9363

Investors, Avishek Lath, India, +91(80)4116-7744, Avishek_lath at; Sandeep Mahindroo, USA, +1-646-254-3133, sandeep_mahindroo at; or Media, Sarah Vanita Gideon, India, +91(80)4156-4998, Sarah_Gideon at; Peter McLaughlin, USA, +1-213-268-9363, Peter_McLaughlin at

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