Infosys Technologies (Nasdaq: INFY) Announces Results for the Quarter Ended
June 30, 2010


    
    Q1 revenues grew by 21.0% year on year; sequentially grew by 4.8%




    BANGALORE, India, July 13 /CNW/ --

    Highlights

    Consolidated results for the quarter ended June 30, 2010

    
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<p>Revenues were <span class="xn-money">$ 1,358 million</span> for the quarter ended <span class="xn-chron">June 30, 2010</span>; QoQ growth was 4.8%; YoY growth was 21.0%</p>
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    --  Net income after tax* was $ 326 million for the quarter ended June 30,
        2010; QoQ decline was 6.6%; YoY growth was 4.2%
    --  Earnings per American Depositary Share (ADS)** was 0.57 for the
quarter
        ended June 30, 2010; QoQ decline was 6.6%; YoY growth of 3.6%
    --  38 clients were added during the quarter by Infosys and its
        subsidiaries
    --  Gross addition of 8,859 employees (net addition of 1,026) for the
        quarter by Infosys and its subsidiaries
    --  1,14,822 employees as on June 30, 2010 for Infosys and its
subsidiaries

    
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<p>*  Excluding the income from sale of our investment in OnMobile Systems, Inc. of US <span class="xn-money">$ 11</span> mn in Q4 FY10, QoQ decline was 3.6%</p>
<p/>
<p>** Excluding the income from sale of our investment in OnMobile Systems, Inc. of US <span class="xn-money">$ 11</span> mn in Q4 FY10, QoQ decline was 3.4%</p>
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<p>"While the global economic environment remains uncertain, we continue to see greater demand for services from our clients," said S. Gopalakrishnan, CEO and Managing Director. "The challenge for the industry is to enhance the investment to grow the business, given the uncertainty in the environment."</p>
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    Business outlook

    
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<p>The company's outlook (consolidated) for the quarter ending <span class="xn-chron">September 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>
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    Outlook under IFRS#

    Quarter ending September 30, 2010
    --  Consolidated revenues are expected to be in the range of $ 1,413
        million to $ 1,427 million; YoY growth of 22.4% to 23.7%
    --  Consolidated earnings per American Depositary Share are expected to be
        in the range of $ 0.59 to $ 0.60; YoY growth of 5.4% to 7.1%

    Fiscal year ending March 31, 2011##
    --  Consolidated revenues are expected to be in the range of $ 5.72
billion
        to $ 5.81 billion; YoY growth of 19.0% to 21.0%
    --  Consolidated earnings per American Depositary Share are expected to be
        in the range of $ 2.42 to $ 2.52; YoY growth of 5.2% to 9.6%

    
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<p>#  Exchange rates considered for major global currencies: AUD / USD - 0.86; GBP / USD - 1.50; Euro / USD - 1.23</p>
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<p>## Excluding the income from sale of our investment in OnMobile Systems, Inc. of US <span class="xn-money">$ 11</span> mn in fiscal 2010, the EPS growth is expected to be in the range of 6.1% to 10.5%</p>
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    Expansion of services and significant projects

    
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<p>With insight and experience of three decades, and improved and enhanced portfolio of services and products, we offer greater value to our clients and stakeholders.</p>
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    Transformation

    
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<p>We continue to drive transformation for our existing clients; a number of new clients have solicited our help to make their businesses more dynamic and profitable.</p>
<p/>
<p>A leading aero structures manufacturer engaged our aerospace engineering team to design and develop components for their commercial airplane program. For a global consumer electronics leader, we are re-engineering their global service exchange platform to help meet their growing service needs. A major transformation project we won this quarter was from a large manufacturer of computer systems and provider of related services, in which we are providing business, functional and consulting expertise. A provider of secure electronic payments and credit/debit card processing services engaged us to improve their reporting, monitoring, business intelligence and service. It is  also consulting us to analyze and recommend process improvements. A leading global chemical company engaged us to define sales requirements and implement a sales force automation package for their North American sales force. A producer of specialist aluminium products sought our services for globally harmonizing business processes and implementing next generation enterprise resource planning software. For a global specialty retailer, we conceptualized and launched a platform that provides a comprehensive view of their competitors' pricing and assortment. We helped a large UK-based retailer revamp its promotions and improve its marketing effectiveness. A European retailer of office automation services consulted us to harmonize their processes and consolidate applications across <span class="xn-location">Europe</span>. A major transformational project won this quarter was from a leading European pipeline engineering company for whom we have implemented an enterprise resource planning system across 32 countries.</p>
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    Operations

    
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<p>Leading global companies continue to engage us to manage their operations and ensure larger returns to scale for them.</p>
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<p>Our expertise in manufacturing and operations helped us win a deal with a global telecom company. We will run the client's quality and business compliance operations, helping it to offer competitive new products in emerging markets. A European telecom major chose us to design, develop, deploy and maintain an agent desktop application. Among the clients who opted for our product lifecycle management services are a leading oilfield service company and an agri-business major. For a global internet services company, we will develop and maintain a new content management product. A global financial services company selected us to develop a platform for merchants worldwide to deliver card members offers through multiple channels. An investment management company partnered us to implement a new commission system for its wholesale brokers to develop scale and reduce time to market. We managed the North American customer relationship management applications for a manufacturer of automobiles and motorcycles. Another automobile manufacturer selected us as a key partner for development projects in their strategic order management and distribution portfolio. We are implementing a centralized loyalty management system with real time access for a leading retail company. We were instrumental in implementing a single multi-channel order management platform for a reputed British retailer. Our retail solutions team was selected as the single strategic vendor for application services for a North American apparel retailer. We also developed a web property for the B2C online sales for another specialty retailer.</p>
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    Innovation

    
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<p>We have won major strategic projects this quarter on our strength and ability to innovate products and processes.</p>
<p/>
<p>A European telecom giant chose us to develop their next generation set top box platform to offer consumers high-definition content and a host of other services. For a large global retailer, we are creating rich mobile applications, with an aim to enhance the shopping experience for their customers. An aircraft manufacturer chose us as their partner to design a new aircraft development program.</p>
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<p>"The volatile currency environment is a concern for the industry," said V. Balakrishnan, Chief Financial Officer. "Our flexible financial and operating model enables us to prioritize our investments and focus on high quality growth even in this tough environment."</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 114,000 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 <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, 2010</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>
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    Unaudited Condensed Consolidated Interim
     Financial Statements prepared in
     compliance with IAS 34, Interim
     Financial Reporting
    ----------------------------------------
    Infosys Technologies Limited and
     subsidiaries
    --------------------------------
    Unaudited Condensed Consolidated Balance
     Sheets as of
    ----------------------------------------
          (Dollars in millions except share data)
          ---------------------------------------
                                              March
                                  June 30,      31,
                                      2010     2010
                                 ---------   ------
    ASSETS
    Current assets
    Cash and cash equivalents       $3,011   $2,698
    Available-for-sale
     financial assets                   42      569
    Investment in certificates
     of deposit                        393      265
    Trade receivables                  828      778
    Unbilled revenue                   228      187
    Derivative financial
     instruments                         -       21
    Prepayments and other
     current assets                    156      143
                                       ---      ---
    Total current assets             4,658    4,661
    Non-current assets
    Property, plant and
     equipment                         955      989
    Goodwill                           178      183
    Intangible assets                   12       12
    Deferred income tax assets          62       78
    Income tax assets                  123      148
    Other non-current assets           127       77
                                       ---      ---
    Total non-current assets         1,457    1,487
                                     -----    -----
    Total assets                    $6,115   $6,148
                                    ------   ------
    LIABILITIES AND EQUITY
    Current liabilities
    Trade payables                      $5       $2
    Derivative financial
     instruments                         6        -
    Current income tax
     liabilities                       208      161
    Client deposits                      4        2
    Unearned revenue                   125      118
    Employee benefit
     obligations                        30       29
    Provisions                          18       18
    Other current liabilities          383      380
                                       ---      ---
    Total current liabilities          779      710
    Non-current liabilities
    Deferred income tax
     liabilities                         1       26
    Employee benefit
     obligations                        38       38
    Other non-current
     liabilities                        13       13
                                       ---      ---
    Total liabilities                  831      787
                                       ---      ---
    Equity
    Share capital-Rs. 5
     ($0.16) par value
     600,000,000 equity shares
     authorized, issued and
     outstanding 571,067,501
     and 570,991,592, net of
     treasury shares as of
     June 30, 2010 and March
     31, 2010, respectively             64       64
    Share premium                      695      694
    Retained earnings                4,722    4,611
    Other components of equity        (197)      (8)
                                      ----      ---
    Total equity attributable
     to equity holders of the
     company                         5,284    5,361
                                     -----    -----
    Total liabilities and
     equity                         $6,115   $6,148
    ---------------------           ------   ------




    
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<p> </p>
<p> </p>
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    Infosys Technologies Limited and
     subsidiaries
    Unaudited Condensed Consolidated
     Statements of Comprehensive Income
                  (Dollars in millions except share data)
                                         Three months
                                          ended June
                                              30,
                                        -------------
                                         2010          2009
                                         ----          ----
    Revenues                           $1,358        $1,122
    Cost of sales                         800           643
                                          ---           ---
    Gross profit                          558           479
                                          ---           ---
    Operating expenses
    Selling and marketing
     expenses                              74            53
    Administrative expenses               100            88
                                          ---           ---
    Total operating expenses              174           141
                                          ---           ---
    Operating profit                      384           338
    Other income, net                      53            55
                                          ---           ---
    Profit before income taxes            437           393
    Income tax expense                    111            80
                                          ---           ---
    Net profit                           $326          $313
                                         ----          ----
    Other comprehensive income
    Fair value changes on
     available-for-sale
     financials assets, net of
     tax effect of $1 million              (1)            -
    Exchange differences on
     translating foreign
     operations                          (188)          236
                                         ----           ---
    Total other comprehensive
     income                             $(189)         $236
                                        -----          ----
    Total comprehensive income           $137          $549
                                         ----          ----
    Profit attributable to:
    Owners of the company                $326          $313
    Non-controlling interest                -             -
                                          ---           ---
                                         $326          $313
                                         ----          ----
    Total comprehensive income
     attributable to
    Owners of the company                $137          $549
    Non-controlling interest                -             -
                                          ---           ---
                                         $137          $549
                                         ----          ----
    Earnings per equity share
       Basic ($)                         0.57          0.55
       Diluted ($)                       0.57          0.55
    Weighted average equity
     shares used in computing
     earnings per equity share
       Basic                      571,036,067   570,115,230
       Diluted                    571,332,571   570,818,075
       -------                    -----------   -----------


    
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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=bmt5iSw8Ga7kVLEHrvu0AQ
    http://www.prnewswire.co.uk/xferdl?file=n/g4h32RHbQrNMgi/WjHhg



    
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    Investor Relations
    Shekar Narayanan, India      Sandeep Mahindroo, USA
    +91 (80) 4116 7744           +1 (646) 254 3133
    shekarn@infosys.com          sandeep_mahindroo@infosys.com
    
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    Media Relations
    Sarah Vanita Gideon, India   Peter McLaughlin, USA
    +91 (80) 4156 4998           +1 (213) 268 9363
    Sarah_Gideon@infosys.com     Peter_McLaughlin@infosys.com





    

For further information: For further information: Investor Relations, Shekar Narayanan, India, +91 (80) 4116 7744, shekarn@infosys.com, or Sandeep Mahindroo, USA, +1-646-254-3133, sandeep_mahindroo@infosys.com; Media Relations, Sarah Vanita Gideon, India, +91 (80) 4156 4998, Sarah_Gideon@infosys.com, or Peter McLaughlin, USA, +1-213-268-9363, Peter_McLaughlin@infosys.com Web Site: http://www.infosys.com

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