Infosys Technologies (Nasdaq: INFY) Announces Results for the Quarter and Year ended March 31, 2010

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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 --
  Highlights

  Consolidated results for the quarter ended March 31, 2010

Revenues were $ 1,296 million for the quarter ended March 31, 2010; QoQ growth was 5.2%; YoY growth was 15.6%

  --  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.

*Includes USD 11 mn arising out of the sale of our investment in OnMobile Systems, Inc.

"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."

Business outlook

The company's outlook (consolidated) for the quarter ending June 30, 2010 and for the fiscal year ending March 31, 2011, under International Financial Reporting Standards (IFRS), is as follows:

  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%

#  Exchange rates considered for major global currencies: AUD / USD - 0.92; GBP / USD - 1.51; Euro / USD - 1.35

##  Excluding the income from sale of our investment in OnMobile Systems, Inc. of USD 11 mn in fiscal 2010, the EPS growth is expected to be in the range of 5.3% to 9.6%

Expansion of services and significant projects

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.

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 India 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.

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.

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.

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.

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.

"We maintained our margins in one of the toughest years for the industry while our cash and cash equivalents reached $3.5 billion," 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."

Change in Directors

Ms. Rama Bijapurkar resigned as the Independent Member of the Board with effect from April 13, 2010.  The Board accepted the resignation of Ms. Bijapurkar and placed on record its heartfelt appreciation for the services rendered by her during her tenure as a director.

Mr. N. R. Narayana 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."

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 113,000 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, 2009, September 30, 2009 and December 31,2009. These filings are available at http://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 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 March 31,
  (Dollars in millions except share data)

  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

Unaudited Condensed Consolidated Statements of Comprehensive Income for the years ended March 31,

  (Dollars in millions except share data)

  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

Unaudited Consolidated Statements of Comprehensive Income for the three months ended March 31,

  (Dollars in millions except share data)

  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

To view the Fact Sheet and Press Release with tables, please click on the links below:

http://www.prnewswire.co.uk/xferdl?file=Y.qUzaQZckQYc9MY3QS..Qhttp://www.prnewswire.co.uk/xferdl?file=DwxoREbTSz.mWOw/tAPXhw

  Contact

  Investor Relations

  Shekar Narayanan, India       Sandeep Mahindroo, USA
  +91 (80) 4116 7744            +1 (646) 254 3133
  shekarn@infosys.comsandeep_mahindroo@infosys.com
                     
  Media Relations   

  Sarah Vanita Gideon, India    Peter McLaughlin, USA
  +91 (80) 4156 4998            +1 (213) 268 9363
  Sarah_Gideon@infosys.comPeter_McLaughlin@infosys.com

Source: Infosys Technologies Ltd.
   

CONTACT:  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, all of Infosys Technologies
Ltd.

Web Site:  http://www.infosys.com/

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