Indian GAAP | US GAAP
INFOSYS TECHNOLOGIES LIMITED (NASDAQ: INFY) ANNOUNCES STRONG REVENUE GROWTH FOR FIRST QUARTER
E-Transformation of Fortune 1000 Companies Drives Growth
Fremont, California, July 11, 2000
Highlights:
- First quarter revenues top $ 80.3 million, up 102.0% from the same quarter last fiscal
- Net earnings per American Depositary Share (ADS) increases to $ 0.20 from $ 0.10 in the same quarter last fiscal
- E-commerce revenues surge to 28.7% - up from 18.8% in the quarter ended March 31, 2000
- Revenues from start-up companies account for 10.9% of net revenues during the quarter as against 8.0% in the quarter ended March 31, 2000
- Quarterly addition in employees surpasses 1000 for the first time
- 32 new customers during the quarter
- Strategic investment of US$ 3 million in CiDRA Corporation and incubation of Onscan Inc.
Infosys Technologies Limited ("Infosys" or "the company") today announced financial results for its first quarter ended June 30, 2000, under US GAAP. Revenue for the quarter increased 102.0% to $ 80.3 million from $ 39.7 million in the quarter ended June 30, 1999.
Net Income for the quarter was $26.8 million ($ 13.3 million for the quarter ended June 30, 1999), or $ 0.20 per diluted ADS ($ 0.10). Included in Net Income was Other Income of $ 1.7 million ($ 1.9 million) arising due to exchange differences on translation of foreign currency deposits. Excluding this, the Net Income for the quarter ended June 30, 2000 was $ 25.1 million ($ 11.4 million) and the earnings per diluted ADS was $ 0.19 ($ 0.09).
Mr. N. R. Narayana Murthy, Chairman and CEO of Infosys, said, "This industry is all about innovation and change. We believe that our ability to innovate constantly and to keep pace with technological changes around the world has made us a trusted partner for Fortune 1000 companies."
E-commerce engagements contributed 28.7% of revenues during the quarter, as against 18.8% in the quarter ended March 31, 2000. The company's e-business strategy focusses on digitalizing traditional economy Fortune 1000 companies across the globe. The revenue from start-up companies was 10.9% during the quarter as against 8.0% in the quarter ended March 31, 2000."E-transforming Fortune 1000 companies has significantly contributed to our revenue growth", said Mr. Nandan M. Nilekani, Managing Director, President and COO, "Web-enabling traditional economy players is an unprecedented market opportunity - our expertise in legacy platforms and our ability to rapidly assimilate new technologies enable us to offer a highly compelling value proposition to this segment."
"Our global delivery model allows us to be highly competitive, while providing quality services to our clients. The company maintained its margins despite annual increase in salary effective this quarter and higher training costs for a record 1000+ new recruits ",said Mr. T. V. Mohandas Pai, Director - Finance and Administration, and Chief Financial Officer.
About Infosys Technologies Ltd.
Infosys Technologies Ltd. (NASDAQ: INFY) is a publicly held company and a world leader in providing IT solutions to Fortune 1000 and emerging new economy companies. Infosys' range of services includes IT consulting, IT architecture, application development, e-commerce and Internet consulting, and software maintenance. The company is ISO 9001 and SEI CMM Level 5 certified.
Using its proprietary Global Delivery Model, the company leverages talent and infrastructure in different parts of the world to provide high-quality and rapid time-to-market solutions to its clients. The US headquarters of Infosys is located in Fremont, California. The company also maintains offices throughout the US, Europe and Asia. For more information, contact P. R. Ganapathy, Investor Relations Officer, at +1 (510) 742-3030 (e-mail: ) or visit Infosys on the World Wide Web at www.infosys.com.
Safe Harbor Provision
Except for the historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These risks and uncertainties include, but are not limited to competition, acquisitions, attracting, recruiting and retaining highly skilled employees, technology, law and regulatory policy and managing risks associated with customer projects as well as other risks detailed in the reports filed by Infosys Technologies Ltd. with the Securities and Exchange Commission, U.S.A. Infosys undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
Balance Sheets in US$
| As of June 30, | As of March 31, | ||
|---|---|---|---|
| 2000 | 1999 | 2000 | |
| (unaudited) | (unaudited) | (audited) | |
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | 105,756,757 | 102,612,617 | 116,599,486 |
| Trade accounts receivable, net of allowances | 51,164,692 | 24,632,558 | 31,233,515 |
| Prepaid expenses and other current assets | 12,566,158 | 6,638,499 | 11,256,295 |
| Total current assets | 169,487,607 | 133,883,674 | 159,089,296 |
| Property, plant and equipment - net | 61,700,055 | 25,977,938 | 47,554,772 |
| Deferred income taxes | 2,685,061 | 1,379,249 | 2,566,266 |
| Investments | 6,177,908 | 177,938 | 3,177,938 |
| Other assets | 6,977,423 | 4,224,381 | 6,894,598 |
| TOTAL ASSETS | 247,028,054 | 165,643,180 | 219,282,870 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current Liabilities | |||
| Accounts payable | 472,473 | 55,556 | 976,840 |
| Client deposits | 332,058 | 15,685 | 425,724 |
| Other accrued liabilities | 12,197,959 | 8,522,103 | 13,835,635 |
| Income taxes payable | 2,965,746 | 2,101,206 | 1,878,977 |
| Unearned revenue | 14,394,383 | 5,201,759 | 4,029,173 |
| Total current liabilities | 30,362,619 | 15,896,309 | 21,146,349 |
| Stockholders' Equity | |||
| Common stock, $0.16 par value; 100,000,000 equity shares authorized, Issued and outstanding - 66,151,367, 66,138,800 and 66,150,700 as of June 30, 2000, June 30, 1999 and March 31, 2000 | 8,593,585 | 8,592,137 | 8,593,510 |
| Additional paid-in-capital | 121,529,268 | 121,407,662 | 121,506,726 |
| Accumulated other comprehensive income | (18,765,207) | (13,052,834) | (14,137,933) |
| Deferred stock compensation | (16,323,017) | (21,466,348) | (17,598,813) |
| Retained earnings | 121,630,806 | 54,266,254 | 99,773,031 |
| Total stockholders' equity | 216,665,435 | 149,746,871 | 198,136,521 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 247,028,054 | 165,643,180 | 219,282,870 |
Infosys Technologies Limited
Statements of Income in US$
| Quarter ended | Year ended | ||
|---|---|---|---|
| June 30, 2000 | June 30, 1999 | March 31, 2000 | |
| (unaudited) | (unaudited) | (audited) | |
| Revenues | 80,257,833 | 39,728,900 | 203,443,754 |
| Cost of revenues | 41,962,161 | 20,620,264 | 111,080,546 |
| Gross profit | 38,295,672 | 19,108,636 | 92,363,208 |
| Operating Expenses: | |||
| Selling and marketing expenses | 4,197,515 | 2,489,358 | 9,643,970 |
| General and administrative expenses | 6,416,913 | 3,062,698 | 17,102,550 |
| Amortization of stock compensation expense | 1,275,796 | 1,250,100 | 5,117,635 |
| Total operating expenses | 11,890,224 | 6,802,156 | 31,864,155 |
| Operating income | 26,405,448 | 12,306,480 | 60,499,053 |
| Other income, net | 3,403,057 | 3,210,701 | 9,038,792 |
| Income before income taxes | 29,808,505 | 15,517,181 | 69,537,845 |
| Provision for income taxes | 2,976,832 | 2,206,302 | 8,193,317 |
| Net income available for common stockholders | 26,831,673 | 13,310,879 | 61,344,528 |
| Earnings per American Depositary Share | |||
| Basic | 0.20 | 0.10 | 0.47 |
| Diluted | 0.20 | 0.10 | 0.47 |
| Weighted American Depositary Shares used in computing earnings per American Depositary Share | |||
| Basic | 131,954,534 | 131,377,332 | 131,319,250 |
| Diluted | 134,563,838 | 131,377,332 | 131,727,980 |
Note: Two American Depositary Shares equal one Equity Share
