Infosys Technologies (Nasdaq: INFY) Announces Results for the Quarter and
Year ended March 31, 2010
Fiscal 2011 revenues expected to grow by 16.0% to 18.0%
Q4 revenues sequentially grew by 5.2%; fiscal 2010 revenues grew by 3.0%
BANGALORE, India, April 13 /CNW/ --
Highlights
Consolidated results for the quarter ended March 31, 2010
</pre>
<p>Revenues were <span class="xn-money">$ 1,296 million</span> for the quarter ended <span class="xn-chron">March 31, 2010</span>; QoQ growth was 5.2%; YoY growth was 15.6%</p>
<pre>
-- Net income after tax* was $ 349 million for the quarter ended March
31,
2010; QoQ growth was 4.5%; YoY growth was 8.7%
-- Earnings per American Depositary Share (ADS)* was 0.61 for the quarter
ended March 31, 2010; QoQ growth was 3.4%; YoY growth of 8.9%
-- 47 clients were added during the quarter by Infosys and its
subsidiaries
-- Gross addition of 9,313 employees (net addition of 3,914) for the
quarter by Infosys and its subsidiaries
-- 113,796 employees as on March 31, 2010 for Infosys and its
subsidiaries
-- Final dividend of Rs. 15 per ADS (equivalent to $ 0.34 per ADS at the
prevailing exchange rate of Rs. 44.50 per US$). The dividends are
payable on the ADSs outstanding as on record date, at the prevailing
exchange rate on the payment date and are subject to approval by the
shareholders.
</pre>
<p>*Includes <span class="xn-money">USD 11</span> mn arising out of the sale of our investment in OnMobile Systems, Inc.</p>
<p/>
<p>"We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building even during the economic downturn," said S. Gopalakrishnan, CEO and Managing Director. "Though the economic environment continues to be challenging, businesses are investing in growth for building a better future."</p>
<pre>
Business outlook
</pre>
<p>The company's outlook (consolidated) for the quarter ending <span class="xn-chron">June 30, 2010</span> and for the fiscal year ending <span class="xn-chron">March 31, 2011</span>, under International Financial Reporting Standards (IFRS), is as follows:</p>
<pre>
Outlook under IFRS#
Quarter ending June 30, 2010
-- Consolidated revenues are expected to be in the range of $ 1,330
million and $ 1,340 million; YoY growth of 18.5% to 19.4%
-- Consolidated earnings per American Depositary Share is expected to be
in the range of $ 0.55 and $ 0.56; YoY growth of 0% to 1.8%
Fiscal year ending March 31, 2011##
-- Consolidated revenues are expected to be in the range of $ 5.57
billion
and $ 5.67 billion; YoY growth of 16.0% to 18.0%
-- Consolidated earnings per American Depositary Share is expected to be
in the range of $ 2.40 and $ 2.50; YoY growth of 4.3% to 8.6%
</pre>
<p># Exchange rates considered for major global currencies: AUD / USD - 0.92; GBP / USD - 1.51; Euro / USD - 1.35</p>
<p/>
<p>## Excluding the income from sale of our investment in OnMobile Systems, Inc. of <span class="xn-money">USD 11</span> mn in fiscal 2010, the EPS growth is expected to be in the range of 5.3% to 9.6%</p>
<pre>
Expansion of services and significant projects
</pre>
<p>We have been working on building a better tomorrow for us and our stakeholders. New offerings, novel client engagement models, innovation, focus on Research & Development (R&D) and the new economies constitute the new order at Infosys.</p>
<p/>
<p>Our Intellectual Property (IP)-based solutions continue to benefit clients. We are designing and implementing a research informatics system at a leading biotechnology company to accelerate discovery research. We are using our Scientific Innovation Solution for knowledge collaboration in this engagement. We partnered with a telecom major to launch a Mobile Application Store. Powered by Flypp(TM), our 'Ready-to-Launch' application platform, the store offers a bouquet of applications drawn from an Infosys-managed ecosystem of Independent Software Vendors (ISVs) and innovators in <span class="xn-location">India</span> and across the globe. A manufacturer is implementing the Infosys Supply Chain Visibility and Collaboration Suite as part of its enterprise-wide initiative on sourcing business intelligence and spends analysis.</p>
<p/>
<p>Learning Services, our recent organizational learning offering, is fast gaining traction among our clients. A groceries and general merchandising company consulted us for training a core group of employees and disseminating the knowledge across business users. A consumer electronics major consulted us for a comprehensive learning management solution.</p>
<p/>
<p>Industry leaders continue to turn to us for our Engineering Services, both in core areas such as R&D and Product Development as well as newer services such as Mobility. A global auto leader engaged us to formulate its Enterprise Mobility strategy to help optimize internal operations and present on-demand information to its customers. We are helping a leading cable operator launch next-generation home gateway devices for voice and data services. A leading defense electronics and systems company engaged us to develop a navigation workstation. A global aircraft manufacturer engaged us to provide engineering design services across multiple aircraft programs. We are building a Contact Center solution for a leading bank to enhance customer service agent experience and productivity. For an information management services leader, we are enabling sales expansion by carrying out accessibility compliance per US Federal and Computer Security standards for its software product.</p>
<p/>
<p>In a major transformation project, we will manage internal IT services for a US-based ISV and help it implement ISO 20000 and IT Service Management (ITSM) processes. We will provide Infrastructure and Application Services, Service Desk, and Desk-Side Services in 450 locations across 104 countries. For another ISV, we are developing a cloud-based, closed and secure end-to-end system that consolidates and delivers transaction statements, promotions, catalogues, and other media digitally from businesses to households. A manufacturer engaged us to transform its turbine remanufacturing business. A manufacturer of environmental and industrial measurement instruments partnered with us to standardize its systems across the world and accelerate its Oracle E-Business Suite rollout using our proprietary tools and accelerators. An aero company consulted us to enhance its customer application portal. A leading retailer partnered with us to develop and implement a new multi-channel system for Order Management.</p>
<p/>
<p>As the new economies transform into global economic hubs, we continue to focus on becoming a major player there and attract significant clients. A large bank consulted us to eliminate process redundancies, improve the quality of data reported, and reduce cycle time as well as processing cost. Another major bank partnered with us to design, build and support a portal framework for wealth management. A telecommunications and information services company engaged us to improve its customer self service capability and customer retention. We partnered with the same company to deliver an emergency alert system to ensure timely SMSes and voice warnings to community residents. This system, a life-saving service, won national recognition for the client.</p>
<p/>
<p>"We maintained our margins in one of the toughest years for the industry while our cash and cash equivalents reached <span class="xn-money">$3.5 billion</span>," said V. Balakrishnan, Chief Financial Officer. "The currency volatility continues to be a concern for the industry. We, however, have an active hedging program to minimize its impact on our margins."</p>
<pre>
Change in Directors
</pre>
<p><span class="xn-person">Ms. Rama Bijapurkar</span> resigned as the Independent Member of the Board with effect from <span class="xn-chron">April 13, 2010</span>. The Board accepted the resignation of <span class="xn-person">Ms. Bijapurkar</span> and placed on record its heartfelt appreciation for the services rendered by her during her tenure as a director.</p>
<p/>
<p><span class="xn-person">Mr. N. R. Narayana</span> Murthy said, "Rama has been a highly productive member of the Board and we will miss her. We wish her all the best for the future."</p>
<pre>
About Infosys Technologies Ltd.
</pre>
<p>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 113,000 employees in over 50 offices worldwide. Infosys is part of the NASDAQ-100 Index and The Global Dow. For more information, visit <a href="http://www.infosys.com">www.infosys.com</a>.</p>
<pre>
Safe Harbor
</pre>
<p>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 <span class="xn-location">India</span>, 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 <span class="xn-location">India</span>, 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 <span class="xn-location">United States</span> Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended <span class="xn-chron">March 31, 2009</span> and on Form 6-K for the quarters ended <span class="xn-chron">June 30, 2009</span>, <span class="xn-chron">September 30, 2009</span> and <span class="xn-chron">December 31,2009</span>. These filings are available at <a href="http://www.sec.gov">www.sec.gov</a>. 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.</p>
<p/>
<p>Unaudited Condensed Consolidated Interim Financial Statements prepared in compliance with IAS 34, Interim Financial Reporting</p>
<pre>
Infosys Technologies Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets as of March 31,
(Dollars in millions except share data)
</pre>
<p> </p>
<p> </p>
<pre>
ASSETS
Current assets
Cash and cash equivalents $2,698 $2,167
Available-for-sale
financial assets 569 -
Investment in certificates
of deposit 265 -
Trade receivables 778 724
Unbilled revenue 187 148
Derivative financial
instruments 21 -
Prepayments and other
current assets 143 81
--- ---
Total current assets 4,661 3,120
Non-current assets
Property, plant and
equipment 989 920
Goodwill 183 135
Intangible assets 12 7
Deferred income tax assets 80 88
Income tax assets 148 54
Other non-current assets 77 52
--- ---
Total non-current assets 1,489 1,256
----- -----
Total assets $6,150 $4,376
------ ------
LIABILITIES AND EQUITY
Current liabilities
Trade payables $2 $5
Derivative financial
instruments - 22
Current income tax
liabilities 161 115
Client deposits 2 1
Unearned revenue 118 65
Employee benefit obligations 29 21
Provisions 18 18
Other current liabilities 380 290
--- ---
Total current liabilities 710 537
Non-current liabilities
Deferred income tax
liabilities 28 7
Employee benefit obligations 38 37
Other liabilities 13 11
--- ---
Total liabilities 789 592
--- ---
Equity
Share capital-Rs. 5 ($0.16)
par value 600,000,000
equity shares authorized,
issued and outstanding
570,991,592 and 572,830,043
as of March 31, 2010 and
2009, respectively 64 64
Share premium 694 672
Retained earnings 4,611 3,618
Other components of equity (8) (570)
--- ----
Total equity attributable to
equity holders of the
company 5,361 3,784
----- -----
Total liabilities and equity $6,150 $4,376
Infosys Technologies Limited and subsidiaries
</pre>
<p>Unaudited Condensed Consolidated Statements of Comprehensive Income for the years ended <span class="xn-chron">March 31</span>,</p>
<p>(Dollars in millions except share data)</p>
<p> </p>
<p> </p>
<pre>
Revenues $4,804 $4,663
Cost of sales 2,749 2,699
----- -----
Gross profit 2,055 1,964
----- -----
Operating expenses:
Selling and marketing expenses 251 239
Administrative expenses 344 351
--- ---
Total operating expenses 595 590
--- ---
Operating profit 1,460 1,374
Other income 209 101
--- ---
Profit before income taxes 1,669 1,475
Income tax expense 356 194
--- ---
Net profit $1,313 $1,281
------ ------
Other comprehensive income
Reversal of impairment loss on available-for-
sale financial asset $2 -
Gain transferred to net profit on sale of
available-for-sale financial asset (1) -
Unrealized holding gains on available-for-sale
financial asset, net of tax effect of $2
million 6 -
Exchange differences on translating foreign
operations 555 (871)
--- ----
Total other comprehensive income $562 $(871)
---- -----
Total comprehensive income $1,875 $410
------ ----
Profit attributable to:
Owners of the company $1,313 $1,281
Non-controlling interest - -
--- ---
$1,313 $1,281
------ ------
Total comprehensive income attributable to:
Owners of the company $1,875 $410
Non-controlling interest - -
--- ---
$1,875 $410
------ ----
Earnings per equity share
Basic ($) 2.30 2.25
Diluted ($) 2.30 2.25
Weighted average equity shares used in computing
earnings per equity share
Basic 570,475,923 569,656,611
Diluted 571,116,031 570,629,581
Infosys Technologies Limited and subsidiaries
</pre>
<p>Unaudited Consolidated Statements of Comprehensive Income for the three months ended <span class="xn-chron">March 31</span>,</p>
<p>(Dollars in millions except share data)</p>
<p> </p>
<p> </p>
<pre>
Revenues $1,296 $1,121
Cost of sales 744 650
--- ---
Gross profit 552 471
--- ---
Operating expenses:
Selling and marketing expenses 73 55
Administrative expenses 89 86
--- ---
Total operating expenses 162 141
--- ---
Operating profit 390 330
Other income 55 51
--- ---
Profit before income taxes 445 381
Income tax expense 96 60
--- ---
Net profit $349 $321
---- ----
Other comprehensive income
Reversal of impairment loss on available-for-
sale financial asset 2 -
Gain recycled to net profit on sale of
available-for-sale financial asset (1) -
Unrealized holding gains, net of tax effect of
$2 million 6 -
Exchange differences on translating foreign
operations 178 (147)
--- ----
Total other comprehensive income $185 $(147)
---- -----
Total comprehensive income $534 $174
---- ----
Profit attributable to:
Owners of the company 349 321
Non-controlling interest - -
--- ---
$349 $321
---- ----
Total comprehensive income attributable to:
Owners of the company $534 174
Non-controlling interest - -
--- ---
$534 $174
---- ----
Earnings per equity share
Basic ($) 0.61 0.56
Diluted ($) 0.61 0.56
Weighted average equity shares used in
computing earnings per equity share
Basic 570,842,313 569,912,641
Diluted 571,289,044 570,553,966
</pre>
<p>To view the Fact Sheet and Press Release with tables, please click on the links below:</p>
<pre>
http://www.prnewswire.co.uk/xferdl?file=Y.qUzaQZckQYc9MY3QS..Q
http://www.prnewswire.co.uk/xferdl?file=DwxoREbTSz.mWOw/tAPXhw
Contact
</pre>
<p> </p>
<p> </p>
<p>Investor Relations </p>
<p> </p>
<pre>
Shekar Narayanan, India Sandeep Mahindroo, USA
+91 (80) 4116 7744 +1 (646) 254 3133
[email protected] [email protected]
Media Relations
</pre>
<p> </p>
<pre>
Sarah Vanita Gideon, India Peter McLaughlin, USA
+91 (80) 4156 4998 +1 (213) 268 9363
[email protected] [email protected]
For further information: Investor Relations, Shekar Narayanan, India, +91 (80) 4116 7744, [email protected], or Sandeep Mahindroo, USA, +1-646-254 3133, [email protected]; Media Relations, Sarah Vanita Gideon, India, +91 (80) 4156 4998, [email protected], or Peter McLaughlin, USA, +1-213-268 9363, [email protected], all of Infosys Technologies Ltd. Web Site: http://www.infosys.com
Share this article