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Infosys Reports Q2

BANGALORE, India -- Infosys (Nasdaq:INFY - News): Highlights

Consolidated results for the quarter ended September 30, 2006
  • Second quarter revenues at $ 746 million, up 42.4% from the corresponding quarter last fiscal
  • Earnings per American Depositary Share (ADS) (a) increased to $ 0.36 from $ 0.25 in the corresponding quarter last fiscal
  • 45 new clients were added during the quarter
  • Gross addition of 10,795 employees (net 7,741) for the quarter 66,150 employees as on September 30, 2006

Outlook for the quarter ending December 31, 2006 and the fiscal year ending March 31, 2007
  • Consolidated revenues expected to be between $ 790 million and $ 795 million for the quarter ending December 31, 2006 (YoY growth of 41.3% - 42.2%) and between $ 3.03 billion and $ 3.04 billion for the fiscal year ending March 31, 2007 (YoY growth of 40.6% - 41.1%)
  • Consolidated earnings per ADS (a) expected to be $ 0.37 for the quarter ending December 31, 2006; (YoY growth of 42.3%) and $ 1.44 for the fiscal year ending March 31, 2007; (YoY growth of 41.1%)

Infosys Technologies Limited ("Infosys" or "the company") today announced financial results for its second quarter ended September 30, 2006. Revenues for the quarter aggregated $ 746 million, up 42.4% from $ 524 million for the quarter ended September 30, 2005.

"Our business model provides a compelling value proposition to clients in a flat world," said Nandan M. Nilekani, CEO and Managing Director. "Our robust organic growth coupled with investments in various strategic areas helped us to grow faster in this environment. We have revised our guidance to cross $ 3 billion in revenues this fiscal."

Infosys is enabling a leading US cable provider offering cable TV, Internet, telephony and wireless services to launch and test time-critical services with a focus on creating new revenue streams.

Enterprise services are enabling companies to become nimbler and more competitive. In a long-term engagement with a large US airline company, Infosys is implementing organization-wide Oracle Financials to transform its finance function in addition to incorporating best practices and operating procedures for enhanced effectiveness.

(a) Adjusted for stock split

Infosys' Independent Validation Services (IVS) are gaining traction with clients across industry verticals. Infosys is establishing a Testing Center of Excellence (TCoE) to streamline Quality Assurance (QA) for a North American brokerage firm and developing enterprise QA strategy for a leading global insurance company. Infosys is also engaged in assessment and redesign of QA and testing processes, and performance validation for another insurance firm with global operations.

Infosys Consulting Inc. added nine new clients including an asset maintenance & servicing company in Australia and a recognized market leader in smartphones, handhelds, software and accessory solutions.

"The rupee depreciated marginally during the quarter with consequent benefit to us," said V. Balakrishnan, Chief Financial Officer. "Our operating margins also improved despite absorbing wage increases and other strategic investments."

Infosys Technologies Ltd. (Nasdaq: INFY)

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