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Infosys Technologies Limited (NYSE:INFY) reported third quarter 2010 earnings per share of 59 cents, ahead of the Zacks Consensus Estimate of 51 cents. Revenue for the quarter was $1,232 million, a year-over-year growth of 5.2%. Net income after tax was $334 million.

A total of 32 new clients were added during the quarter taking the number of active clients to 568. The client categories contributing over $100 million and $200 million annually added one customer each over the prior quarter. There was a net addition of 4,429 employees by the company taking the total number of employees to 109,882.

North America contributed to 66.6% of revenues while Europe accounted for 21.9% of the same. Insurance, Banking and Financial Services constituted 34.6% of quarterly revenues followed by Manufacturing (19.3%), Telecom (16.2%) and Retail (13.1%). According to the type of service provided, Application Development and Maintenance contributed to 42.3% of revenues followed by Consulting and Package Implementation (23.3%). The percentage of fixed price contracts was 38.3% in the quarter, a marginal increase from the level in the prior quarter.

There was an increase in utilization level of employees in the quarter, both including and excluding trainees.

During the quarter, the company lunched Flypp, an application platform that enables mobile service providers to enhance customer experience with a host of ready-to-use experiential applications across several devices. Clients across the industry continued to entrust the company with transformational capabilities. Finacle’s commitment to being the reliable operating software for banks across the world was reinforced with the launch of Finacle Advisor, an integrated platform, which empowers banks to deliver products and services through a fully assisted self-service channel.

During the quarter, Infosys established its fully-owned Brazilian subsidiary. It also opened its first premises in New Zealand, inaugurating its first office at Wellington.

Cash, cash equivalents and investments in liquid mutual funds were $3,105 million as on Dec 31, 2009 compared to $2,167 million at the end of the corresponding prior-year quarter.

For the quarter ending Mar 31, 2010, the company expects revenues of $1,240 to $1,250 million while earnings per ADS are expected to be 56 cents.

Founded in 1981, Infosys Technologies Ltd. (INFY) is the second-largest IT services company in terms of revenue in India, with a base of about 109,882 employees (as of Dec 31, 2009) around the globe. Headquartered in Bangalore, India, the company enables its clients to leverage its performance by utilizing its proprietary Global Delivery Model (GDM). Its major competitor is Wipro Ltd (WIT - Analyst Report).

We currently have a Neutral recommendation on INFY.

Source: Infosys Beats Third Quarter Estimates