Infosys Technologies Announces Results for the Quarter ended June 30, 2006; Q1 revenues grew sequentially by 11%.BANGALORE Bangalore (băng-gəlôr`), city (1991 pop. 2,651,000; metropolitan area 4,130,288), capital of Karnataka state, S central India, 3,000 ft (914 m) above sea level. , India -- Infosys Technologies (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :INFY INFY Infosys Technologies Ltd (stock symbol) ): Guidance revised upwards. Revenues expected to grow 35.4% - 35.9% in fiscal 2007 Highlights Consolidated results for the quarter ended June 30, 2006 --First quarter revenues at $ 660 million, up 38.7% from the corresponding quarter last fiscal --Earnings per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (ADS)(a) increased to $ 0.63 from $ 0.45 in the corresponding quarter last fiscal --38 new clients were added during the quarter. --Gross addition of 8,097 employees (net 5,694) for the quarter --58,409 employees as on June 30, 2006 Outlook for the quarter ending September 30, 2006 and the fiscal year ending March 31, 2007 --Consolidated revenues expected to be between $ 710 million and $ 715 million for the quarter ending September 30, 2006 (YoY growth of 35.5% - 36.5%) and between $ 2.91 billion and $ 2.92 billion for the fiscal year ending March 31, 2007 (YoY growth of 35.4% - 35.9%) --Consolidated earnings per ADS(a) expected to be between $ 0.64 and $ 0.65 for the quarter ending September 30, 2006; (YoY growth of 25.5% - 27.5%) and between $ 2.70 and $ 2.73 for the fiscal year ending March 31, 2007; (YoY growth of 32.4% - 33.8%) Infosys Technologies Limited ("Infosys" or "the company") today announced financial results for its first quarter ended June 30, 2006. Revenues for the quarter aggregated $ 660 million, up 38.7% from $ 476 million for the quarter ended June 30, 2005. "Our efforts in building the brand, developing the client base, and expanding strategic accounts have fueled our robust organic model," said Nandan M. Nilekani, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , President and Managing Director. Infosys is helping a large semiconductor company address its operational challenges through effective customer data management. A leading hi-tech distributor has lowered its IT support costs by adopting an Infosys shared-services model to provide Oracle ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. support for its multiple operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . Infosys is working with a large specialty retailer in the US to develop a merchandise planning Merchandise Planning is a strategic and systematic approach used by retailers, particularly in fashion and non-food areas. It is aimed at maximising return on investment, through planning and monitoring sales, margins and inventory in order to increase profitability. application that will permit planners to model the sales and inventory plans in real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. for improved decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from and forecasting. A Fortune 100 pharmaceutical and medical devices manufacturer is using Infosys' expertise in strategic business transformation initiatives to achieve an efficient world-class IT services sourcing model. Infosys is defining the product roadmap for corporate actions for a leading US financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. . Infosys is also helping the company with a buy-or-build analysis. "We benefited from the depreciation of the rupee RUPEE, comm. law. A denomination of money in Bengal. In the computation of ad valorem duties, it is valued at fifty-five and one half cents. Act of March 2, 1799, s. 61; 1 Story's L. U. S. 627. Vide Foreign coins. 2. against all major currencies during the quarter," said V. Balakrishnan V. Balakrishnan is an Indian name, which may refer to:
(a) Not adjusted for stock split Changes to Board of Directors Mr. N. R. Narayana Murthy N.R. Narayana Murthy (Kannada: ಎನ್. ಆರ್. ನಾರಾಯಣಮೂರ್ತಿ , Chairman and Chief Mentor Mentor, in Greek mythology Mentor (mĕn`tər, –tôr'), in Greek mythology, friend of Odysseus and tutor of Telemachus. , turns 60 on August 20, 2006 and as per the service rules of the company, he will retire from the services of the company on that date. In this connection, the Board resolved to appoint Mr. Murthy as an Additional Director of the company with effect from August 21, 2006 and further resolved that Mr. Murthy will serve as the Non-Executive Chairman of the Board and Chief Mentor with effect from August 21, 2006. The Board also resolved that Mr. Nandan M. Nilekani, currently the Chief Executive Officer, President and Managing Director of the company, be re-designated as the Chief Executive Officer and Managing Director with effect from August 21, 2006 and that Mr. S. Gopalakrishnan, currently the Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and Deputy Managing Director, be promoted and re-designated as the President, Chief Operating Officer and Joint Managing Director with effect from August 21, 2006. About the company Infosys (NASDAQ:INFY) defines, designs and delivers IT-enabled business solutions. These provide our clients with strategic differentiation and operational superiority, thereby increasing their competitiveness. Each solution we provide is delivered with the industry-benchmark "Infosys Predictability" that gives our clients peace of mind. With Infosys, they are assured of a transparent business partner, business-IT alignment with flexibility, 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 58,000 employees in over 35 offices worldwide. For more information, visit www.infosys.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Certain statements in this release concerning our future growth prospects are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT, business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and 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 Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , industry segment concentration, our ability to manage our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , reduced demand for technology in our key focus areas, disruptions in telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. 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 instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2006. 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.
Infosys Technologies Limited and subsidiaries
Consolidated Balance Sheets
(Dollars in millions)
As of
---------------------
March 31, June 30,
2006 2006
---------------------
(1) (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $889 $392
Investments in liquid mutual fund units 170 358
Trade accounts receivable, net of allowances 361 408
Unbilled revenue 48 57
Prepaid expenses and other current assets 40 51
Deferred tax assets 1 2
---------------------
Total current assets 1,509 1,268
Property, plant and equipment, net 491 496
Goodwill 8 91
Intangible assets, net - 19
Deferred tax assets 13 12
Advance income taxes 18 19
Other assets 27 33
---------------------
Total Assets $2,066 $1,938
---------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $3 $2
Income taxes payable - 1
Client deposits 2 2
Unearned revenue 44 54
Other accrued liabilities 160 147
---------------------
Total current liabilities 209 206
Non-current liabilities
Other non-current liabilities 5 5
Minority interests 15 2
Stockholders' Equity
Common stock, $0.16 par value
600,000,000 equity shares authorized,
Issued and outstanding -275,554,980 and
276,843,176 as of March 31, 2006 and June 30,
2006, respectively 31 31
Additional paid-in capital 410 444
Accumulated other comprehensive income 9 (46)
Retained earnings 1,387 1,296
---------------------
Total stockholders' equity 1,837 1,725
---------------------
Total Liabilities And Stockholders' Equity $2,066 $1,938
---------------------
(1) March 31, 2006 balances were obtained from audited financial
statements
Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Statements of Income
(Dollars in millions except per share data)
Three months ended
June 30,
-------------------
2005 2006
-------------------
Revenues $476 $660
Cost of revenues 274 389
-------------------
Gross profit 202 271
-------------------
Operating Expenses:
Selling and marketing expenses 32 45
General and administrative expenses 37 56
-------------------
Total operating expenses 69 101
-------------------
Operating income 133 170
Gain on sale of long term investment - 1
Other income, net 7 28
-------------------
Income before income taxes and minority
interest 140 199
Provision for income taxes 18 23
-------------------
Income before minority interest $122 $176
Minority interest - 2
-------------------
Net income $122 $174
-------------------
Earnings per equity share(a)
Basic $0.45 $0.63
Diluted $0.43 $0.62
Weighted average equity shares used in
computing earnings per equity share(a)
Basic 269,581,842 274,995,563
Diluted 277,086,163 281,403,388
(a) Not adjusted for stock split
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