MEDIA RELEASE PR36502
Infosys Technologies (NASDAQ: INFY) Announces Results for the Quarter Ended September
30, 2009
BANGALORE, Oct. 9/ PRNewswire-AsiaNet/ --
- Q2 Revenues Sequentially Grew by 2.9%
Highlights
Consolidated results for the quarter ended September 30, 2009
Revenues were $ 1,154 million for the quarter ended September 30, 2009;
YoY decline was 5.1%
- Net income after tax was $ 317 million for the quarter ended September
30, 2009; YoY decline was 0.9%
- Earnings per American Depositary Share (ADS) was 0.56 for the quarter
ended September 30, 2009; YoY growth of 0.0%
"In the second quarter, the business climate has improved,"
said S. Gopalakrishnan, CEO and Managing Director. "Clients are now looking
to invest in a few strategic initiatives and relationships to maximize value
from opportunities when the economic downturn ends."
Business outlook
The company's outlook (consolidated) for the quarter ending December 31,
2009 and for the fiscal year ending March 31, 2010, under International
Financial Reporting Standards (IFRS), is as follows:
Outlook under IFRS*
Quarter ending December 31, 2009
- Consolidated revenues are expected to be in the range of
$1,155 million and $ 1,165 million; YoY decline of 1.4% to 0.5%
- Consolidated earnings per American Depositary Share are expected to be
$0.50; YoY decline of 13.8%
Fiscal year ending March 31, 2010
- Consolidated revenues are expected to be in the range of
$4.60 billion and $ 4.62 billion; YoY decline of 1.3% to 1.0%
- Consolidated earnings per American Depositary Share are expected to
be in the range of $ 2.09 and $ 2.10; YoY decline of 7.1% to 6.7%
* Exchange rates considered for quarters ending December 31, 2009 and
March 31, 2010 for major global currencies: AUD / USD - 0.87; GBP /
USD - 1.60; Euro / USD - 1.46
Expansion of services and significant projects
Our strategy through the downturn has been to build our
strengths rather than limit ourselves to navigating the challenges. Following
this route, we are confident of emerging stronger when the economic
environment improves and better poised to deliver enhanced value to all our
stakeholders. We are sharpening focus on Research & Development, Intellectual
Property-based solutions, and 'New Engagement Models' (NEMs) that offer
flexible pricing and greater operational control and efficiency to clients.
In addition, true to the spirit of our Global Delivery Model, we are
continuing to invest and expand in regions such as India, Brazil, Mexico, and
China. We have a sales group dedicated to large outsourcing deals that has
helped us secure significant projects this year. We believe our expertise in
large-scale transition management will differentiate us in the near future.
Clients have been impressed by our engineering services. An
industrial products and services company is testing our 'Enterprise
Collaboration Platform' to transform its intranet from an information
repository into a next-generation content hub that engages employees better.
A leading mobile service provider selected us as its strategic partner to run
its 'Bid Management Process'. The deal involves setting up our patent-pending
'Infosys Sales Effectiveness Center' that will own the bid process, pricing,
and contract services. For an apparel manufacturer, we are implementing our
'Product Master Syndication Solution' that will support the entire product
lifecycle and provide a single source of data. A power major sought our
'Plant Design and Management System Solution' that enables collaboration
across distributed teams. A large manufacturer selected us as its prime
systems integration partner to implement and support our Product Lifecycle
Management solution based on Siemens TeamCenter product.
We continue to focus on large transformational engagements,
especially through our consulting and enterprise solution offerings. A
broadcasting company partnered with us to develop new digital media services.
A service provider for retailers engaged us to develop an Order Management
System. A large bank selected us to conduct end-to-end testing as well as
user-acceptance testing for the implementation of Finacle(TM), our core
banking solution and integration with other applications. A large bank chose
us for end-to-and systems integration in the transformation program of its
corporate banking e-channel system. A provider of high-performance networking
systems partnered with us for a transformational program to scale up its core
engineering processes.
"The global currency markets continue to be extremely volatile, even
though we have seen some stability in the rupee against the US dollar this
quarter," said V. Balakrishnan, Chief Financial Officer. "We continue to
focus on high quality growth with superior margins. Our balance sheet has
been further strengthened with cash and cash equivalents reaching US$ 2.8
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 105,000 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, 2009 and on Form 6-K for the quarter ended June 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 Consolidated Financial Statements (Condensed) in compliance
with International Financial Reporting Standards as issued by the
International Accounting Standards Board (IFRS)
Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Balance Sheets as of
(Dollars in millions except share data)
September 30, March 31,
2009 2009
ASSETS
Current assets
Cash and cash equivalents $2,208 $2,167
Available-for-sale financial assets 670 -
Trade receivables 700 724
Unbilled revenue 164 148
Derivative financial instruments 5 -
Prepayments and other assets 108 81
Total current assets $3,855 $3,120
Non-current assets
Property, plant and equipment 946 920
Goodwill 144 135
Intangible assets 6 7
Deferred income tax assets 109 88
Income tax assets 59 54
Other non-current assets 69 52
Total non-current assets 1,333 1,256
Total assets $5,188 $4,376
LIABILITIES AND EQUITY
Current liabilities
Trade payables $2 $5
Derivative financial instruments - 22
Current income tax liabilities 137 115
Tax on dividend - -
Client deposits 1 1
Unearned revenue 116 65
Employee benefit obligations 29 21
Provisions 22 18
Other current liabilities 354 290
Total current liabilities 661 537
Non-current liabilities
Deferred income tax liabilities 8 7
Employee benefit obligations 48 48
Total liabilities 717 592
Equity
Share capital - Rs. 5 ($0.16) par value
600,000,000 equity shares authorized,
issued and outstanding 570,478,093 and
572,830,043 as of September 30, 2009 and
March 31, 2009, respectively 64 64
Share premium 681 672
Retained earnings 4,070 3,618
Other components of equity (344) (570)
Total equity attributable to equity holders
of the company 4,471 3,784
Total liabilities and equity $5,188 $4,376
Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Statements of Comprehensive Income
(Dollars in millions except share data)
Three months ended Six months ended
September 30, September 30,
2009 2008 2009 2008
Revenues $1,154 $1,216 $2,276 $2,371
Cost of revenues 662 691 1,305 1,388
Gross profit 492 525 971 983
Operating Expenses:
Selling and marketing
expenses 57 68 110 129
General and administrative
expenses 85 96 173 183
Total operating expenses 142 164 283 312
Operating Profit 350 361 688 671
Other income/(expense) 8 (28) 15 (46)
Finance income 41 43 89 89
Profit before income
taxes 399 376 792 714
Income tax expense 82 56 162 86
Net Profit $317 $320 $630 $628
Earnings per equity
share
Basic ($) 0.56 0.56 1.10 1.10
Diluted ($) 0.56 0.56 1.10 1.10
Weighted average
equity shares used in
computing earnings
per equity share
Basic 570,343,178 569,592,198 570,229,204 569,479,023
Diluted 571,046,545 570,721,306 570,948,478 570,723,017
To view the Fact Sheet and Press Release with tables, please click on
the links below:
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
SOURCE: Infosys Technologies Ltd.
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