Infosys Technologies Limited (NYSE:INFY) reported fourth quarter 2010 earnings per share of 59 cents, ahead of the Zacks Consensus Estimate of 57 cents. This excludes the extra $11 million income arising out of the divestment of OnMobile Systems Inc. Revenue for the quarter was $1,296 million, a year-over-year growth of 15.6%. Net income after tax was $349 million, including the divestment proceeds.
A total of 47 new clients were added during the quarter, taking the number of active clients to 575. There was a net addition of 3,914 employees by the company, taking the total number of employees to 113,796 globally.
North America contributed to 66.1% of revenues and grew 4.4% sequentially while Europe accounted for 22.5% of the same and grew 7.9% sequentially. Insurance, Banking and Financial Services constituted 34.8% of quarterly revenues followed by Manufacturing (20.2%), Telecom (15.3%) and Retail (13.0%). According to the type of service provided, Application Development and Maintenance contributed to 39.6% of revenues followed by Consulting and Package Implementation (26.0%). The percentage of fixed price contracts was 39.5% in the quarter, an increase of 120 basis points from the level in the prior quarter.
There was an increase in utilization level of employees in the quarter, both including and excluding trainees.
Finacle, the universal banking solution from Infosys, reinforced its commitment to be the reliable operating software for banks across the world with the launch of Finacle Advisor. This is an integrated platform that empowers banks to deliver products and services through a fully assisted self-service channel. The company won 10 deals in the quarter for Finacle, half of which were from Asia-Pacific and the rest from the EMEA region.
During the quarter, Infosys applied for eight patents in India and the U.S.
Cash, cash equivalents and investments in liquid mutual funds were $3,532 million as on March 31, 2010, compared with $2,167 million at the end of the corresponding prior-year quarter.
For the quarter ending June 30, 2010, the company expects revenues of $1,330 to $1,340 million while earnings per ADS are expected to be 55−56 cents.
Founded in 1981, Infosys Technologies Ltd. is the second-largest IT services company in terms of revenue in India. 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 (NYSE:WIT).
We currently have an Outperform recommendation on INFY.
Source: Infosys Tops Estimates