MEDIA RELEASE PR41761
Infosys Technologies (NASDAQ: INFY) Announces Results for the Quarter Ended September 30, 2010
BANGALORE, India, Oct. 15 /PRNewswire-AsiaNet/ --
- Q2 Revenues Grew by 29.6% Year on Year; Sequentially Grew by 10.2%
Highlights
Consolidated results under IFRS for the quarter ended September 30, 2010
- Revenues were $1,496 million for the quarter ended September 30, 2010;
QoQ growth was 10.2%; YoY growth was 29.6%
- Net income after tax was $374 million for the quarter ended September
30, 2010; QoQ growth was 14.7%; YoY growth was 18.0%
- Earnings per American Depositary Share (ADS) was 0.65 for the quarter
ended September 30, 2010; QoQ growth was 14.0%; YoY growth was 16.1%
- 27 clients were added during the quarter by Infosys and its
subsidiaries
- Gross addition of 14,264 employees (net addition of 7,646) for the
quarter by Infosys and its subsidiaries
- 1,22,468 employees as on September 30, 2010 for Infosys and its
subsidiaries
- Declared an interim dividend of `10 per ADS and a 30th year special
dividend of `30 per ADS (equivalent to an interim dividend of $0.22 and
30th year special dividend of $0.67 per ADS, at the prevailing exchange
rate of `44.50 per US$). The record date for the payment of dividend is
October 22, 2010.
"Though the economic environment continues to be challenging, we have
leveraged our client relationships, solutions and investments to grow faster
in this quarter," said S. Gopalakrishnan, CEO and Managing Director. "There
are significant drivers for investment in Information Technology since any
transformation program to 'build tomorrow's enterprises' requires these
investments to be made. We are partnering with our clients on these
initiatives."
Business outlook
The company's outlook (consolidated) for the quarter ending December 31,
2010 and for the fiscal year ending March 31, 2011, under International
Financial Reporting Standards (IFRS), is as follows:
Outlook under IFRS - consolidated#
Quarter ending December 31, 2010
- Revenues are expected to be in the range of $1,547 million and $1,562
million; YoY growth of 25.6% to 26.8%
- Earnings per American Depositary Share(EPADS) is expected to be in the
range of $0.66 and $0.67; YoY growth of 11.9% to 13.6%
Fiscal year ending March 31, 2011##
- Revenues are expected to be in the range of $5.95 billion and $6.00
billion; YoY growth of 24.0% to 25.0%
- Earnings per American Depositary Share(EPADS) is expected to be in the
range of $2.54 and $2.58;YoY growth of 10.4% to 12.2%
# Exchange rates considered for major global currencies: AUD / USD -
0.97; GBP / USD - 1.58; Euro / USD - 1.36
## 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 11.4% to 13.2%
Expansion of services and significant projects
We continue to expand our offerings, enabling our clients'
transformations, managing their operations and accelerating their
innovations. We invested in research in new lines of products and services
which have been successfully adopted and implemented by our clients.
Transformation
Our solutions have been driving transformation for our existing and new
clients, helping them streamline and diversify their businesses.
We are working with a global food and beverage major to enhance systems
in their Product Lifecycle Management and Laboratory Information Management
System applications. We are helping a Global 1000 CPG convenience foods
company consolidate its intranet portals. We are also supporting the global
product creation systems for a US-based sportswear and equipment major to
help the client build next generation Product Lifecycle Management platforms.
We were the sole sourced consultancy for improving quality management
processes for the IT wing of a leading white goods company.
A leading manufacturer selected us as its partner to modernize its
business systems by reducing complexity in process applications, minimizing
costs and improving responsiveness. We are working with a major oilfield
service provider, to develop and support technology products that will help
oil and gas operators optimize production. We were selected by an
international power company to work on its global financial consolidation
project.
We are working with a publication house to transform its order management
value chain to increase revenues and improve customer engagement. We defined
the mobility roadmap for the US sales force of a leading agribusiness company
to improve the client's effectiveness and customer responsiveness. A global
financial services company selected us to roll out a new broker / dealer
platform for its client and advisor base.
Operations
We continue to successfully manage and meet our clients' operational
requirements, delivering higher returns on their investments.
We are working with the research and development team of a multinational
computer manufacturer to develop processes and systems to manage software
projects, resulting in efficiencies and cost savings. We are managing the
flagship data center platforms and products for a leading US-based
infrastructure management products company, enabling the client to focus on
the development of next generation product platforms. We were chosen by a
computer major to deliver next-generation software to manage servers and
enable remote access services. We are helping a global consumer electronics
company expand its retail supply chain platform to handle increased volumes
and provide better service.
We delivered a program to optimize key business processes for an energy
services provider in the US. A global oil and gas major selected us to set up
and support a middleware infrastructure and integration layer that will
integrate its trading applications. A global energy company selected us to
implement a new automated SAP invoice payments system that would give it
predictable flow of resources in business operations.
We are working with a leading aircraft manufacturer to customize its
technical publication software to reduce turnaround time and effort. A large
manufacturer of springs consulted us for its business intelligence and data
warehousing consolidation. We are helping a major consumer packaging company
to create a single globally integrated human resources information system. We
were selected by a leader in the aerospace and defense sector to
conceptualize and design a roadmap for its intranet and corporate
communications.
Innovation
Our innovative prowess continues to gain favor with clients.
We are the strategic engineering partner of a leading network equipment
company, helping develop its core software platform for next generation
products. A US-based technology major engaged us to set up and execute a
Center of Excellence focusing on quality assurance services for critical
applications.
An aircraft equipment manufacturing major has solicited our help with
aircraft wing structure and system integration design for a large new
commercial aircraft program. We are carrying out the detailed design for a
new commercial aircraft development program for a leading aerospace supplier.
We are also providing post-design support for a large new aircraft program of
a major aerospace supplier.
We have developed an innovative mobile navigation application for an
online mapping service that has helped the client tap into a large mobile
user base. A global bank has partnered with us to set up a Compliance Center
of Excellence that will enhance its compliance bandwidth while rolling out
new strategic programs. We are developing and deploying a mobile sales force
enablement solution to enhance productivity for a global orthopedic solutions
company. A large US utility is using our services to develop and deploy
multiple Smart Grid initiatives that will reduce malfunctions and operational
costs.
Liquidity
As on September 30, 2010, cash and cash equivalents, including
investments in available-for-sale financial assets and certificates of
deposits was $3.9 Bn( US $2.9 Bn as on September 30,2009)
"Our operating margins improved during the quarter while our liquidity
position was further strengthened with cash and cash equivalents reaching US
$3.9 billion," said V. Balakrishnan, Chief Financial Officer. "However, the
continued global economic uncertainty, coupled with extreme currency
volatility, is a concern for the industry."
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 1,22,000 employees in over 50 offices worldwide.
Infosys is part of the NASDAQ-100 Index and The Global Dow. For more
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, 2010 and on Form 6-K for the quarter ended June 30, 2010.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 Consolidated Interim Financial Statements prepared in
compliance with IAS 34, Interim Financial Reporting
Infosys Technologies Limited and subsidiaries
(Dollars in millions except share data)
Unaudited Condensed Consolidated September 30, 2010 March 31,
2010
Balance Sheets as of
ASSETS
Current assets
Cash and cash equivalents $3,427 $2,698
Available-for-sale financial assets 8 569
Investment in certificates of deposit 434 265
Trade receivables 928 778
Unbilled revenue 235 187
Derivative financial instruments 4 21
Prepayments and other current assets 175 143
Total current assets 5,211 4,661
Non-current assets
Property, plant and equipment 1,008 989
Goodwill 183 183
Intangible assets 12 12
Deferred income tax assets 69 78
Income tax assets 143 148
Other non-current assets 116 77
Total non-current assets 1,531 1,487
Total assets $6,742 $6,148
LIABILITIES AND EQUITY
Current liabilities
Trade payables $8 $2
Current income tax liabilities 201 161
Client deposits 2 2
Unearned revenue 133 118
Employee benefit obligations 33 29
Provisions 18 18
Other current liabilities 430 380
Total current liabilities 825 710
Non-current liabilities
Deferred income tax liabilities 1 26
Employee benefit obligations 44 38
Other non-current liabilities 13 13
Total liabilities 883 787
Equity
Share capital- `5 ($0.16) par value
600,000,000 equity shares authorized,
issued and outstanding 571,201,074
and 570,991,592, net of 2,833,600
treasury shares each as of September
30, 2010 and March 31, 2010,
respectively 64 64
Share premium 697 694
Retained earnings 5,096 4,611
Other components of equity 2 (8)
Total equity attributable to equity
holders of the company 5,859 5,361
Total liabilities and equity $6,742 $6,148
Infosys Technologies Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Dollars in millions except share data)
Three months ended Six months ended
September 30, September 30,
2010 2009 2010 2009
Revenues $1,496 $1,154 $2,854 $2,276
Cost of sales 855 662 1,655 1,305
Gross profit 641 492 1,199 971
Operating expenses:
Selling and marketing
expenses 82 57 156 110
Administrative expenses 107 85 207 173
Total operating expenses 189 142 363 283
Operating profit 452 350 836 688
Other income, net 57 49 110 104
Profit before income taxes 509 399 946 792
Income tax expense 135 82 246 162
Net profit $374 $317 $700 $630
Other comprehensive income
Fair value changes on
available-for-sale
financial assets, net of
tax effect - - (1) -
Exchange differences on
translating foreign
operations 199 $(10) 11 $226
Total other comprehensive
income $199 $(10) $10 $226
Total comprehensive income $573 $307 $710 $856
Profit attributable to:
Owners of the company $374 $317 $700 $630
Non-controlling interest - - - -
$374 $317 $700 $630
Total comprehensive income
attributable to:
Owners of the company $573 $307 $710 $856
Non-controlling interest - - - -
$573 $307 $710 $856
Earnings per equity share
Basic ($) 0.65 0.56 1.23 1.10
Diluted ($) 0.65 0.56 1.23 1.10
Weighted average equity
shares used in computing
earnings per equity share
Basic 571,131,367 570,343,178 571,083,717 570,229,204
Diluted 571,358,817 571,046,545 571,345,695 570,948,478
Contact
Investor Avishek Lath, India
Relations +91(80)4116-7744
Avishek_lath@infosys.com
Sandeep Mahindroo, USA
+1(646)254-3133
sandeep_mahindroo@infosys.com
Media Sarah Vanita Gideon, India
Relations +91(80)4156-4998
Sarah_Gideon@infosys.com
Peter McLaughlin, USA
SOURCE: Infosys Technologies Ltd
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