Infosys Sees Some Customers Delaying Finalizing 2008 IT Budgets
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Infosys (INFY) Friday morning reported revenue for its fiscal third quarter ended December of $1.084 billion, with EPS of 54 cents a share. The Street had been looking for $1.08 billion and 51 cents. (Some special gains accounted for the difference between what the company reported and what the Street had expected.)

For the March quarter, the company sees revenue of $1.136 billion to $1.142 billion, about in line with the Street at $1.14 billion. EPS is expected to be 54 cents, right in line with the Street.
Despite the in-line quarter and guidance, the stock is getting hit. The reason, apparently, is a comment on the post-earnings call by CEO Kris Gopalakrishnan. “The only concern, or maybe area where we’re watching is how do the budgets for next year look like,” he said on the call. “Most of the budgets would have been typically completed by now, but we’re seeing some customers, at least, delaying it to the end of the month or the early part of February, when they’ll share it with us.” He added that where budgets are completed, customers on average are expecting 6% growth in IT spending, with offshore taking an increasing percentage of the total.
The uncertainty inherent in Gopalakrishnan’s statement is weighing on both Infosys shares and those of its competition.
In Friday’s trading:
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Victor