Infosys Technologies (NASDAQ: INFY) Announces Results for the Quarter Ended June 30, 2009

    - Q1 Revenues Declined by 2.9% Year on Year; Sequentially Grew by 0.1%

    BANGALORE, India, July 10 /CNW/ -

    Highlights

    Consolidated results for the quarter ended June 30, 2009

    Revenues were $ 1,122 million for the quarter ended June 30, 2009; YoY
decline was 2.9%

    -   Net income after tax was $ 313 million for the quarter ended June 30,
        2009; YoY growth was 1.6%

    -   Earnings per American Depositary Share (ADS) increased to $ 0.55 from
        $ 0.54; YoY growth of 1.9%

    "We believe that in the short term the global economic environment will
continue to be challenging," said S. Gopalakrishnan, CEO and Managing
Director. "We are working closely with our clients to help them navigate the
downturn. We continue to invest in the future to take advantage of the growth
opportunities in the medium to long term."

    Business outlook

    The company's outlook (consolidated) for the quarter ending September 30,
2009 and for the fiscal year ending March 31, 2010, under International
Financial Reporting Standards (IFRS), is as follows:

    Outlook under IFRS(*)

    Quarter ending September 30, 2009

    -   Consolidated revenues are expected to be in the range of $ 1,110
        million and $ 1,130 million; YoY decline of 8.7% to 7.1%

    -   Consolidated earnings per American Depositary Share are expected to
        be in the range of $ 0.50 and $ 0.51; YoY decline of 10.7% to 8.9%
        Fiscal year ending March 31, 2010

    -   Consolidated revenues are expected to be in the range of $ 4.45
        billion and $ 4.52 billion; YoY decline of 4.6% to 3.1%

    -   Consolidated earnings per American Depositary Share are expected to
        be in the range of $ 1.97 and $ 2.00; YoY decline of 12.4% to 11.1%

    (*) Exchange rates considered for major global currencies:
        AUD/USD - 0.81; GBP/USD - 1.66; Euro/USD - 1.41

    Expansion of services and significant projects

    Infosys continues to win transformational deals, solution-based
engagements, and systems integration projects as clients seek a trusted
partner in their journeys.
    Clients are leveraging Infosys' industry expertise on projects directed
at gaining a competitive advantage. A leading manufacturer and marketer of
beauty care products, Alberto Culver Company, selected us to enhance its trade
promotion effectiveness. We will deliver advanced category analytics services
to help the company improve pricing, promotions and category management
decisions. A developer and marketer of video games software and content is
using our enterprise collaboration platform to ensure sustained community
interaction and innovation management. We defined a collaboration platform
strategy and roadmap for a high tech manufacturer, and the implementation is
expected to result in significant cost savings and enhanced customer
satisfaction. We are helping a high tech major, through our Supply Chain
Visibility platform, to enable better KPI tracking, incident management, SLA
compliance, and overall decision making. We are also helping the company to
develop a repeatable and standardized approach for delivering services. A
manufacturing major awarded us a deal to standardize its global processes as
per contextual business needs. A premium food retailer, Waitrose, selected us
as its partner for a multi-channel commerce transformation program. A
transportation major engaged us to meet its strategic needs of global product
development by integrating engineering and manufacturing data.
    Infosys' consulting services is contributing to growth. A provider of
workflow solutions sought our consulting services for a transformational
project deploying a human capital management system that supports global and
local processes in more than 25 countries. The client also engaged us to
transform its end-to-end business processes to accelerate integration of
acquisitions and speed up time-to-market for new products.
    Market leaders across the world are benefiting from Infosys' engineering
services, particularly its Product Lifecycle Management (PLM) expertise. A
global manufacturer engaged us for PLM services, including roadmap definition
and assessment. In addition, we are working with another global manufacturer
to support its PLM program, and a global consumer packaged goods company to
transform its PLM platform.
    Infosys continues to strengthen its position in the banking and capital
markets sector. A leading bank chose us to help it architect a future-state
platform for client payment authorizations as well as conduct performance
testing on one of its key online banking channels. Another leading bank
selected us to provide functional consulting support for a Human Resources
Management System (HRMS) rollout across 36 countries. Telstra, Australia's
leading telecommunications and information services company, selected us as
one of its key strategy partners to support its five-year AUD 450 million
contracts for application development and maintenance.
    We developed and delivered a global template to an agribusiness to
establish a scalable enterprise computing platform. We implemented a
forecasting and planning application at a large airline company which involved
planning ground manpower resources to service airplanes. As a result, the
company improved processing by more than 40 percent.
    Learning Services' innovative solutions have been acclaimed by our
clients. During fiscal 2008, we had introduced 'Learning Services' that
modernizes and integrates traditionally separate functions such as training,
learning, e-learning, talent development, and knowledge management. During Q1
of this fiscal, a high tech manufacturer sought our expertise to create and
execute a strategy to design change communication, and build content to help
users adapt to new technologies in the social arena. In addition, Learning
Services was awarded a project by a consumer electronics company to develop a
technology architecture to support the induction of new customer service
agents.
    "The global currency markets continue to be volatile. During the quarter,
the rupee appreciated against the US dollar," said V. Balakrishnan, Chief
Financial Officer. "We continue to focus on margins while making the right
investments to accelerate growth."

    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 103,000 employees in over 50 offices worldwide. Infosys is part of
the NASDAQ-100 Index and The Global Dow. For more information, visit
http://www.infosys.com.

    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 quarters ended June 30, 2008, September 30, 2008 and December
31, 2008. 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)

                                                        June 30,    March 31,
                                                           2009         2009
    ASSETS
    Current assets
    Cash and cash equivalents                            $2,270       $2,167
    Available-for-sale financial assets                     240            -
    Trade receivables                                       713          724
    Unbilled revenue                                        182          148
    Derivative financial instruments                          5            -
    Prepayments and other assets                             96           81
    Total current assets                                  3,506        3,120
    Non-current assets
    Property, plant and equipment                           958          920
    Goodwill                                                144          135
    Intangible assets                                         7            7
    Deferred income tax assets                               95           88
    Income tax assets                                        60           54
    Other non-current assets                                 55           52
    Total non-current assets                              1,319        1,256
    Total assets                                         $4,825       $4,376
    LIABILITIES AND EQUITY
    Current liabilities
    Trade payables                                           $2           $5
    Derivative financial instruments                          -           22
    Current income tax liabilities                          144          115
    Tax on dividend                                          27            -
    Client deposits                                           1            1
    Unearned revenue                                         89           65
    Employee benefit obligations                             20           21
    Provisions                                               18           18
    Other current liabilities                               315          290
    Total current liabilities                               616          537
    Non-current liabilities
    Deferred income tax liabilities                           8            7
    Employee benefit obligations                             53           48
    Total liabilities                                       677          592
    Equity
    Share capital - Rs. 5 ($0.16) par value                  64           64
    600,000,000 equity shares authorized,
    issued and outstanding 573,059,177 and
    572,830,043 as of June 30, 2009 and March
    31, 2009, respectively
    Share premium                                           676          672
    Retained earnings                                     3,742        3,618
    Other components of equity                             (334)        (570)
    Total equity attributable to equity
     holders of the company                               4,148        3,784
    Total liabilities and equity                         $4,825       $4,376



    Infosys Technologies Limited and subsidiaries

    Unaudited Consolidated Statements of Comprehensive Income for the three
    months ended June 30,

                                      (Dollars in millions except share data)

                                                           2009         2008
    Revenues                                             $1,122       $1,155
    Cost of sales                                           643          697
    Gross profit                                            479          458
    Operating expenses:
    Selling and marketing expenses                           53           61
    Administrative expenses                                  88           87
    Total operating expenses                                141          148
    Operating profit                                        338          310
    Other income/(expense)                                    7          (18)
    Finance income                                           48           46
    Profit before income taxes                              393          338
    Income tax expense                                       80           30
    Net profit                                             $313         $308
    Other comprehensive income
    Exchange differences on translating foreign
     operations                                             236         (274)
    Total other comprehensive income                       $236        $(274)

    Total comprehensive income                             $549          $34
    Profit attributable to:
    Owners of the parent                                   $313         $308
    Non-controlling interests                                 -            -
                                                           $313         $308
    Total comprehensive income attributable to:
    Owners of the parent                                   $549          $34
    Non-controlling interests                                 -            -
                                                           $549          $34
    Earnings per equity share
    Basic ($)                                             $0.55        $0.54
    Diluted ($)                                           $0.55        $0.54
    Weighted average equity shares used in
     computing earnings per equity share
    Basic                                           570,115,230  569,365,847
    Diluted                                         570,818,075  570,728,234

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For further information: Investor Relations, Shekar Narayanan, India,
+91-80-4116-7744, shekarn@infosys.com; Sandeep Mahindroo, USA, (646) 254-3133,
sandeep_mahindroo@infosys.com; Media Relations, Bani Paintal Dhawan, India,
+91-80-3913-4511, Bani_Dhawan@infosys.com; Peter McLaughlin, USA, (213)
268-9363, lisa_kennedy@infosys.com, Peter_McLaughlin@infosys.com,
tina_george@infosys.com