Infosys Surpasses $2 Billion Revenue Mark, Will Issue Special Dividends (INFY)

Apr.17.06 | About: Infosys Limited, (INFY)

Infosys Technologies (NYSE:INFY) announced that Fiscal 2006 revenues were $2.15 Billion after YoY growth of 35% (see full INFY conference call transcript). For the first time in the company’s 25 year history it surpassed the $2 Billion revenue mark. The company also announced plans to reward shareholders by paying three one-time dividends:

1. It will give each shareholder of its American ADRs an additional share for each one held.
2. It will also payout a ‘Silver Jubilee’ dividend of 67 cents per ADR share.
3. Another final dividend of 19 cents per ADR.

Following are the highlights from the press release:

Consolidated results for the quarter ended March 31, 2006

- Fourth quarter revenues at $ 593 million, up 30.0% from the corresponding quarter last fiscal
- Earnings per American Depositary Share (NYSE:ADS) increased to $ 0.56 from $ 0.47 in the corresponding quarter last fiscal
- Stock dividend to shareholders (including ADS holders) in the ratio of two for one (i.e. one additional ADS for every ADS held) subject to approval of shareholders
- Silver Jubilee special dividend of Rs. 30.00 per ADS (equivalent to $ 0.67 per ADS at the prevailing exchange rate of Rs. 44.48 per US$). Final dividend of Rs. 8.50 per ADS (equivalent to $ 0.19 per ADS at the prevailing exchange rate of Rs. 44.48 per US$). These dividends are payable at the prevailing exchange rate on the payment date and are subject to approval by the shareholders
- 38 new clients were added during the quarter. 9 clients contribute more than $ 50 million each in annual revenues
- Gross addition of 5,170 employees (net 3,293) for the quarter and 22,868 employees (net 15,965) for the year
- 52,715 employees as on March 31, 2006

Outlook for the quarter ending June 30, 2006 and the fiscal year ending March 31, 2007

- Consolidated revenues expected to be between $ 628 million and $ 633 million for the quarter ending June 30, 2006 (YoY growth of 31.9% - 33.0%) and between $ 2.76 billion and $ 2.80 billion for the fiscal year ending March 31, 2007 (YoY growth of 28.0% - 30.0%)
- Consolidated earnings per ADS expected to be between $ 0.56 and $ 0.57 for the quarter ending June 30, 2006; (YoY growth of 24.4% - 26.7%) and between $ 2.57 to $ 2.61 for the fiscal year ending March 31, 2007; (YoY growth of 26.0% - 27.9%)