Exhibit 99.1
Infosys Technologies Limited – Financial Release December 31, 2003 | US GAAP Press Release |
Infosys Technologies (NASDAQ: INFY) Announces Results for the Quarter ended December 31, 2003
Infosys increases guidance for revenue and EPADS for fiscal 2004
Fremont, California – January 9, 2004
Highlights
Results for the quarter ended December 31, 2003
• | Third quarter revenues at $ 275.9 million, up 38% from the corresponding quarter last fiscal | |
• | Earnings per American Depositary Share (ADS) increased to $ 0.54 from $ 0.40 in the corresponding quarter last fiscal | |
• | 30 new clients were added during the quarter | |
• | Gross addition of 3,666 employees for the quarter for Infosys and its subsidiary, Progeon Ltd. | |
• | 23,209 employees as on December 31, 2003 for Infosys and its subsidiary, Progeon Ltd. |
Outlook for the quarter and the fiscal year ending March 31, 2004
• | Consolidated net revenues expected to be between $ 290 million and $ 293 million for the quarter ending March 31, 2004, and between $ 1,050 million and $ 1,053 million for the fiscal year ending March 31, 2004 | |
• | Consolidated earnings per ADS expected to be $ 0.55 for the quarter ending March 31, 2004, and $ 2.02 for the fiscal year ending March 31, 2004 |
Infosys Technologies Limited (“Infosys” or “the company”) today announced financial results for its third quarter ended December 31, 2003. Revenues for the quarter aggregated $ 275.9 million, up 38% from $ 200.0 million for the quarter ended December 31, 2002.
Net income was $ 70.5 million ($ 52.3 million for the quarter ended December 31, 2002) and earnings per ADS was $ 0.54 ($ 0.40 for the quarter ended December 31, 2002).
“We have reorganized Infosys to face new challenges – increased expectations from clients, a fast-changing economy and a new competitive scenario,”said Nandan M. Nilekani, CEO, President and Managing Director.“We have enhanced our focus on vertical markets and on providing business solutions leveraging technology, using our Global Delivery Model.”
“The acquisition of Expert Information Systems Pty. Limited, Australia is complete and we are working towards a seamless integration,”said S. Gopalakrishnan, Member of the Board and COO.“This will accelerate our market penetration in Australia and provide enhanced value to our clients.”
“We have added several high-quality clients in the high-tech and financial services sectors, in addition to leading communication service providers,”said Basab Pradhan, Head – World-wide Sales and Senior Vice President.“We see this as a result of the market’s continuing interest in offshore services, and also, some of our successful business solutions and alliances.”
“Our initiatives on increasing work offshore continue to yield results. Offshore effort increased to 67.8% during the quarter as compared to 63.9% for the same quarter in the previous year,”said S. D. Shibulal, Member of the Board and Head – World-wide Customer Delivery.“Our billing for two clients, on an LTM (Last Twelve Months) basis, has crossed $ 50 million each.”
In the telecom sector, Infosys saw the addition of leading corporations to its client list. Apremier wireless carrier in the USchose Infosys to design, develop and deploy a financial and marketing data mart that will help the organization analyze its financial performance. High-tech companies are finding new ways of improving knowledge and expertise in cutting edge technology. Anindustry leader
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Infosys Technologies Limited – Financial Release December 31, 2003 | US GAAP Press Release |
providing global data and IP network and integration servicesfor multinational businesses has engaged Infosys in the design, development and support of its global CRM applications. Infosys made significant progress in the media and entertainment industry during the quarter, with the addition of three global leaders.One of the world’s premier media and entertainment companieschose Infosys to help them with some of their technology initiatives.
The retail industry continues to use technology to provide faster and more efficient services to its growing customer base. Infosys reinforced its position in this segment in the US by adding to its client base arenowned supplier of specialty outdoor gearand anationwide chain of superstoresin the US, selling domestic merchandise and home furnishings.
“Pricing has been stable and despite the largest hiring for a quarter, margins have been maintained,”said T. V. Mohandas Pai, Member of the Board and Chief Financial Officer.
About the company
Infosys is a leading global technology services firm founded in 1981. Infosys provides end-to-end business solutions that leverage technology for our clients across the entire software life cycle: consulting, design, development, re-engineering, maintenance, system integration, package evaluation and implementation. In addition, Infosys offers software products to the banking industry, as well as business process management services through its majority-owned subsidiary, Progeon. For more information, contact V. Balakrishnan at +91 (80) 852 0440 in India or visit us on the World Wide Web at 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, 2003 and on Form 6-K for the quarters ended June 30, 2003 and September 30, 2003. 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.
Contact | ||||
Investor Relations | P. R. Ganapathy, U.S. | V. Balakrishnan, India | ||
+1 (510) 742-3030 | +91 (80) 852-0440 | |||
guns@infosys.com | balakv@infosys.com | |||
Media | Lisa Kennedy, U.S. | Tina George, India | ||
Relations | +1 (510) 742-2946 | +91 (80) 852-2408 | ||
lisa_kennedy@infosys.com | tina_george@infosys.com |
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Infosys Technologies Limited – Financial Release December 31, 2003 | US GAAP Press Release |
Infosys Technologies Limited and its subsidiaries
Consolidated Balance Sheets
in US$ | |||||||||||
March 31, 2003 | December 31, 2003 | ||||||||||
(Audited) | (Unaudited) | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 354,362,918 | $ | 421,302,898 | |||||||
Investments in liquid mutual fund units | — | 133,011,380 | |||||||||
Trade accounts receivable, net of allowances | 109,119,856 | 153,010,094 | |||||||||
Deferred tax assets | 288,541 | 472,095 | |||||||||
Prepaid expenses and other current assets | 24,384,316 | 35,637,535 | |||||||||
Unbilled revenue | 19,702,186 | 20,420,935 | |||||||||
Total current assets | 507,857,817 | 763,854,937 | |||||||||
Property, plant and equipment, net | 157,194,190 | 182,131,622 | |||||||||
Intangible assets, net | 6,471,236 | — | |||||||||
Deferred tax assets | 7,264,885 | 6,509,330 | |||||||||
Investments | 4,613,833 | 1,925,167 | |||||||||
Prepaid income taxes | 4,452,678 | 169,688 | |||||||||
Other assets | 16,454,328 | 14,651,560 | |||||||||
TOTAL ASSETS | $ | 704,308,967 | $ | 969,242,304 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | 426,611 | $ | 342,644 | |||||||
Client deposits | 3,208,295 | 21,203,634 | |||||||||
Other accrued liabilities | 46,249,269 | 78,656,396 | |||||||||
Income taxes payable | — | 14,321,236 | |||||||||
Unearned revenue | 13,202,115 | 18,510,857 | |||||||||
Total current liabilities | 63,086,290 | 133,034,767 | |||||||||
Non-current liabilities | |||||||||||
Preferred stock of subsidiary 0.0005% Cumulative Convertible Preference Shares, par value $2 each, 4,375,000 preference shares Authorized, issued and outstanding – 4,375,000 preference shares as of March 31, 2003 and December 31, 2003 | 10,000,000 | 10,757,408 | |||||||||
Other non-current liabilities | 5,217,758 | 4,427,000 | |||||||||
Stockholders’ Equity | |||||||||||
Common stock, $0.16 par value; 100,000,000 equity shares authorized, Issued and outstanding – 66,243,078 and 66,455,992 as of March 31, 2003 and December 31, 2003 respectively | 8,602,909 | 8,626,207 | |||||||||
Additional paid-in capital | 127,042,751 | 144,070,027 | |||||||||
Retained earnings | 524,621,160 | 670,884,201 | |||||||||
Deferred stock compensation | (2,817,066 | ) | — | ||||||||
Accumulated other comprehensive income | (31,444,835 | ) | (2,557,306 | ) | |||||||
Total stockholders’ equity | 626,004,919 | 821,023,129 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 704,308,967 | $ | 969,242,304 | |||||||
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Infosys Technologies Limited – Financial Release December 31, 2003 | US GAAP Press Release |
Infosys Technologies Limited and its subsidiaries
Unaudited consolidated statements of income
In US$ except per share data | ||||||||||||||||||
Three months ended December 31, | Nine months ended December 31, | |||||||||||||||||
2002 | 2003 | 2002 | 2003 | |||||||||||||||
Revenues | $ | 200,014,166 | $ | 275,886,678 | $ | 537,775,974 | $ | 759,911,290 | ||||||||||
Cost of revenues (including amortization of stock compensation expenses) | 110,928,922 | 155,856,199 | 294,226,283 | 429,501,225 | ||||||||||||||
Gross profit | 89,085,244 | 120,030,479 | 243,549,691 | 330,410,065 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Selling and marketing expenses | 14,952,660 | 20,827,551 | 40,734,946 | 56,243,853 | ||||||||||||||
General and administrative expenses | 15,422,086 | 20,586,131 | 40,383,534 | 58,747,502 | ||||||||||||||
Amortization of stock compensation expenses | 513,954 | 278,343 | 1,541,863 | 1,163,910 | ||||||||||||||
Amortization of intangible assets | 924,249 | 2,647,778 | 1,744,274 | 6,719,351 | ||||||||||||||
Total operating expenses | 31,812,949 | 44,339,803 | 84,404,617 | 122,874,616 | ||||||||||||||
Operating income | 57,272,295 | 75,690,676 | 159,145,074 | 207,535,449 | ||||||||||||||
Other income, net | 6,907,692 | 8,842,133 | 12,538,464 | 24,385,839 | ||||||||||||||
Income before income taxes | 64,179,987 | 84,532,809 | 171,683,538 | 231,921,288 | ||||||||||||||
Provision for income taxes | 11,926,841 | 13,987,449 | 29,885,621 | 38,391,629 | ||||||||||||||
Net income | $ | 52,253,146 | $ | 70,545,360 | $ | 141,797,917 | $ | 193,529,659 | ||||||||||
Earnings per equity share | ||||||||||||||||||
Basic | $ | 0.80 | $ | 1.07 | $ | 2.16 | $ | 2.95 | ||||||||||
Diluted | $ | 0.78 | $ | 1.05 | $ | 2.13 | $ | 2.91 | ||||||||||
Weighted equity shares used in computing earnings per equity share | ||||||||||||||||||
Basic | 65,569,377 | 65,709,862 | 65,567,814 | 65,628,199 | ||||||||||||||
Diluted | 66,667,561 | 67,181,796 | 66,405,932 | 66,557,167 |
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