Infosys Technologies (Nasdaq: INFY) Announces Results for the Quarter ended
December 31, 2009
Q3 revenues sequentially grew by 6.8%
MYSORE, India, Jan. 12 /CNW/ --
Highlights
Consolidated results for the quarter ended December 31, 2009
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<p>Revenues were <money>$1,232 million</money> for the quarter ended <chron>December 31, 2009</chron>; QoQ growth was 6.8%; YoY growth was 5.2%</p>
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-- 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%
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<p>"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."</p>
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Business outlook
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<p>The company's outlook (consolidated) for the quarter ending <chron>March 31, 2010</chron> and for the fiscal year ending <chron>March 31, 2010</chron>, under International Financial Reporting Standards (IFRS), is as follows:</p>
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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%
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<p>* Exchange rates considered for quarter ending <chron>March 31, 2010</chron> for major global currencies: AUD / USD - 0.90; GBP / USD - 1.61; Euro / USD - 1.44</p>
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Expansion of services and significant projects
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<p>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.</p>
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<p>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.</p>
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<p>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.</p>
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<p>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.</p>
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<p>"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 <money>$3.1 billion</money>."</p>
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Board of Directors
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<p>The Board has appointed <person>Prof. Marti G. Subrahmanyam</person> as the Lead Independent Director effective <chron>January 12, 2010</chron>. <person>Prof. Subrahmanyam</person> will be taking over the role from <person>Mr. Deepak M. Satwalekar</person>. <person>Mr. Satwalekar</person> will continue to serve as an Independent Director and Chairman of the Audit Committee. He is the first Lead Independent Director in <location>India</location> and was appointed in <chron>May 2003</chron>.</p>
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<p>"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."</p>
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<p>He added, "I am delighted to welcome <person>Prof. Marti G. Subrahmanyam</person> 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."</p>
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About Infosys Technologies Ltd.
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<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 109,000 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>
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Safe Harbor
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<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 <location>India</location>, 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 <location>India</location>, 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 <location>United States</location> Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended <chron>March 31, 2009</chron> and on Form 6-K for the quarters ended <chron>June 30, 2009</chron> and <chron>September 30, 2009</chron>. 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>
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Unaudited Condensed Interim Financial Statements prepared in compliance
with International Financial Reporting Standards (IFRS)
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<p>Infosys Technologies Limited and subsidiaries</p>
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<p>Unaudited Condensed Consolidated Balance Sheet as of</p>
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(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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<p>Infosys Technologies Limited and subsidiaries</p>
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<p>Unaudited Condensed Consolidated Statement of Comprehensive Income</p>
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(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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<p>To view the Fact Sheet and Press Release with tables, please click on the links below:</p>
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http://www.prnewswire.co.uk/xferdl?file=eYPcz4xF4W.nkwmJbOMatg
http://www.prnewswire.co.uk/xferdl?file=77x/u9yx2qIl49Z/6DiX.A
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<p>Contact</p>
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Investor Shekar Narayanan, India Sandeep Mahindroo, USA
Relations +91 (80) 4116 7744 +1 (646) 254 3133
[email protected] [email protected]
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Media Sarah Vanita Gideon, India Peter McLaughlin, USA
Relations +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], or 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
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