Highlights

Consolidated results for the quarter ended December 31, 2005:

• Third quarter revenues at $ 559 million, up 32.2% from the corresponding quarter last fiscal
• Earnings per American Depositary Share (ADS) increased to $ 0.53 from $ 0.42 in the corresponding quarter last fiscal
• 36 new clients were added during the quarter
• Gross addition of 5,135 employees for the quarter (net 3,226 employees)
• 49,422 employees as on December 31, 2005

Outlook for the quarter and fiscal year ending March 31, 2006:

• Consolidated revenues expected to be between $ 582 million and $ 584 million for the quarter ending March 31, 2006 (YoY growth of 27.9% - 28.4%) and $ 2.14 billion for the fiscal year ending March 31, 2006; (YoY growth of 34.6%)
• Consolidated earnings per ADS expected to be between $ 0.55 and $ 0.56 for the quarter ending March 31, 2006; (YoY growth of 17.0% - 19.2%) and between $ 2.04 to $ 2.05 for the fiscal year ending March 31, 2006; (growth of 29.9% - 30.6%)

Infosys Technologies Limited (Infosys or the company) today announced financial results for its third quarter ended December 31, 2005. Revenues for the quarter aggregated $ 559 million, up 32.2% from $ 423 million for the quarter ended December 31, 2004.

"We have seen another quarter of steady growth," said Nandan M. Nilekani, CEO, President and Managing Director. "Our initiatives in strategic alignment, capability building and operational excellence are all on track."

"We have just celebrated the 10th anniversary of some of our development centers outside Bangalore," said S. Gopalakrishnan, Member of the Board and COO. "All these centers have matured and are contributing significantly to Infosys' growth."

Infosys' continued focus on being the business transformational partner for its clients gained significant momentum this quarter.

Infosys' Strategic Global Sourcing Unit and Infosys Consulting Inc. undertook an assessment of the sourcing strategy and processes for a leading hi-tech company. This assessment will enable the client to achieve its vision of consolidating vendors, reducing spend on local contractors while increasing spend on offshore managed services vendors.

In a strategic engagement, Infosys was selected as the global sourcing partner for a large aerospace conglomerate in the US. Infosys successfully implemented three large business-critical systems for a leading aerospace company in the US, including the replacement of a SGI-based graphics and arts illustration system with a Windows-based SGE solution. Infosys is re-engineering the client's engineering and authoring application for improved performance and scalability.

One of the largest insurance and financial services companies in North America has sought Infosys' expertise in developing an agency front-end portal that will strengthen its distribution capacity and drive product performance, while providing a common technology solution to enhance agent productivity.

A premier luxury retailer, dedicated to providing customers with distinctive merchandise and superior service, has sought Infosys' expertise to improve item management functionality for its direct and catalog channels through process and systems improvement.

New services at Infosys such as Infrastructure Management Services (IMS) and Independent Validation Services (IVS) continued to gain traction this quarter. In the IMS arena, Infosys won a large multi-year contract in infrastructure support for a large, Europe-based global client in investment banking. In the area of IVS, Infosys is building a Testing Center of Excellence (TCoE) for the largest grocery home-shopping service in the world.

"In the last two quarters, we have been able to build on our consulting capabilities," said S. D. Shibulal, Member of the Board and Head - Worldwide Customer Sales & Delivery. "Our collaborative approach to the market-place, combined with the strengths of our various business units, is finding good traction with our clients and is showing positive results."

"The rupee remained volatile during the quarter," said T. V. Mohandas Pai, Member of the Board and CFO. "The benefit of rupee depreciation on the operating margin was offset by the hedges at the non-operating level. Liquidity continues to be strong."

Update on Progeon Limited

Akshaya Bhargava, Managing Director and Chief Executive Officer, has expressed a desire to leave Progeon for personal reasons and will remit office from March 1, 2006. Akshaya has been associated with Progeon from its early days and has been one of the main factors for Progeon's current success.

Amitabh Chaudhry, currently Chief Operating Officer, will take over as Managing Director and Chief Executive Officer with effect from March 2, 2006. Amitabh has been associated with Progeon since early 2003 and has been responsible for building industry-leading execution capabilities within Progeon.

Mr. N. R. Narayana Murthy, Chairman and Chief Mentor, Infosys Technologies Limited, said, "Akshaya has led Progeon from a start-up to its current eminent position. We wish him all success in his future endeavors. Amitabh's role has been seminal in building the operations and solutions team at Progeon and in managing its high growth."Download the document now 36.6 kb (Adobe Acrobat Document)