<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>f91451exv99w1.txt
<DESCRIPTION>EXHIBIT 99.1
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<PAGE>
EXHIBIT 99.1
Infosys Technologies Limited - Financial Release US GAAP Press Release
June 30, 2003
Infosys Technologies (NASDAQ: INFY) Announces Results for the Quarter Ended June
30, 2003
INFOSYS RECORDS HIGHER VOLUME GROWTH. INCREASES GUIDANCE FOR REVENUE AND EPS FOR
FISCAL 2004
Fremont, California - July 10, 2003
Highlights
Results for the quarter ended June 30, 2003
- First quarter revenues at $ 233.3 million, up 49.26% from the corresponding
quarter last fiscal
- Earnings per American Depositary Share (ADS) increased to $ 0.44 from $
0.33 in the corresponding quarter last fiscal
- 22 new clients were added during the quarter
- Gross addition of 2,175 employees for the quarter, including 303 lateral
hires - net addition of 1,739 employees for the quarter
Outlook for the quarter ending September 30, 2003 and the fiscal year ending
March 31, 2004
- Consolidated net revenues expected to be between $ 237 million and $ 239
million for the quarter ending September 30, 2003, and between $ 966
million and $ 982 million for the fiscal year ending March 31, 2004
- Consolidated earnings per ADS expected to be $ 0.45 for the quarter ending
September 30, 2003, and between $ 1.81 and $ 1.82 for the fiscal year
ending March 31, 2004
Infosys Technologies Limited ("Infosys" or "the company") today announced
financial results for its first quarter ended June 30, 2003. Revenues for the
quarter aggregated $ 233.3 million, up 49.26% from $ 156.3 million for the
quarter ended June 30, 2002.
Net income was $ 58.3 million ($ 42.8 million for the quarter ended June 30,
2002) and earnings per ADS was $ 0.44 ($ 0.33)
"THERE IS AN INCREASED INTEREST IN OFFSHORE OUTSOURCING AS GLOBAL CORPORATIONS
REALIZE ITS BENEFITS. BUSINESS OPPORTUNITIES CONTINUE TO GROW. HOWEVER, THE
PRICING ENVIRONMENT REMAINS CHALLENGING," said Nandan M. Nilekani, CEO,
President and Managing Director. "OUR VALUE PROPOSITION TO CLIENTS REMAINS
STRONGLY DIFFERENTIATED, DESPITE THE INCREASING PRESENCE OF GLOBAL COMPETITORS."
"IN SPITE OF THE CHALLENGING ENVIRONMENT, INFOSYS CONTINUED TO INVEST IN SALES,
MARKETING AND NEW SERVICES, WHILE IMPROVING EXISTING SERVICES. NEW SERVICES
INTRODUCED OVER THE LAST THREE YEARS CONTRIBUTED SIGNIFICANTLY TO CURRENT
REVENUES," said S. Gopalakrishnan, Member of the Board and COO. "SALARIES WERE
INCREASED FOR OUR EMPLOYEES IN INDIA. INCREASED INVESTMENTS HAVE BEEN BALANCED
WITH EFFECTIVE CONTROL OF DISCRETIONARY EXPENDITURE."
"THE STRONG GROWTH IN VOLUME HAS EXCEEDED OUR INITIAL EXPECTATIONS," said S. D.
Shibulal, Member of the Board and Head - World-wide Customer Delivery. "OUR
UTILIZATION HAS FURTHER IMPROVED DURING THE QUARTER. THERE HAS BEEN A CHANGE IN
THE ONSITE-OFFSHORE MIX DUE TO A HIGHER COMPONENT OF OFFSHORE WORK."
"OUR CONTINUED INVESTMENT IN CLIENT-FACING ACTIVITIES HAS ENABLED US TO ADDRESS
CLIENT REQUIREMENTS MORE EFFECTIVELY AND TO DEEPEN RELATIONSHIPS. THIS HAS
HELPED US MANAGE A HIGHER SHARE OF OUR CLIENTS' WALLET," said Basab Pradhan,
Head - World-wide Sales and Senior Vice President.
Infosys strengthened its presence in the financial services industry by
partnering with clients to develop technology-enabled business solutions. A
GLOBAL BANKING ENTERPRISE selected Infosys to implement a sourcing strategy for
reducing cost, improving the efficiency of internal operations, and enabling a
quicker response to business needs, for its North American operations. A LARGE,
DIVERSIFIED BANK BASED IN THE
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Infosys Technologies Limited - Financial Release US GAAP Press Release
June 30, 2003
UK entered into a long-term strategic relationship with the company for its
Information Technology (IT) requirements. Infosys is also designing and building
a research portal for A PROVIDER OF SECURITIES AND INVESTMENT BANKING FUNCTIONS.
The company strengthened its presence in the automotive and aerospace sector by
commencing work for ONE OF THE FORTUNE 500 AUTOMOTIVE COMPANIES in the U.S.
Infosys will develop a consolidated requirements management and planning system
for the client. In Europe, Infosys is assisting A LEADING AUTOMOTIVE SYSTEM
SUPPLIER in the advanced simulation of various crash conditions.
"INCREASED EFFICIENCY AND OPTIMIZATION OF EXPENSES HAVE HELPED US MAINTAIN OUR
MARGINS DESPITE THE INCREASE IN SALARY COST," said T. V. Mohandas Pai, Member of
the Board and Chief Financial Officer. "WE HAVE PRO-ACTIVELY HEDGED OUR NET
RECEIVABLES TO MITIGATE THE IMPACT OF RUPEE APPRECIATION ON OUR MARGINS."
ABOUT THE COMPANY
Infosys is a leading global technology services firm founded in 1981. Infosys
provides end-to-end business solutions that leverage technology for our clients
across the entire software life cycle: consulting, design, development,
re-engineering, maintenance, system integration, package evaluation and
implementation. In addition, Infosys offers software products to the banking
industry, as well as client business process management services through its
majority-owned subsidiary, Progeon. For more information, contact V.
Balakrishnan at +91 (80) 852 0440 in India or visit us on the World Wide Web at
www.infosys.com.
SAFE HARBOR
Certain statements in this release concerning our future growth prospects are
forward-looking statements, which involve a number of risks and uncertainties
that could cause actual results to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties regarding
fluctuations in earnings, our ability to manage growth, intense competition in
IT services including those factors which may affect our cost advantage, wage
increases in India, our ability to attract and retain highly skilled
professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, client concentration, restrictions on immigration, industry segment
concentration, our ability to manage our international operations, reduced
demand for technology in our key focus areas, disruptions in telecommunication
networks or system failures, our ability to successfully complete and integrate
potential acquisitions, liability for damages on our service contracts, the
success of the companies in which Infosys has made strategic investments,
withdrawal of governmental fiscal incentives, political instability and regional
conflicts, legal restrictions on raising capital or acquiring companies outside
India, and unauthorized use of our intellectual property and general economic
conditions affecting our industry. Additional risks that could affect our future
operating results are more fully described in our United States Securities and
Exchange Commission filings including our Annual Report on Form 20-F for the
fiscal year ended March 31, 2003. These filings are available at www.sec.gov.
Infosys may, from time to time, make additional written and oral forward-looking
statements, including statements contained in the company's filings with the
Securities and Exchange Commission and our reports to shareholders. The company
does not undertake to update any forward-looking statements that may be made
from time to time by or on behalf of the company.
CONTACT
<TABLE>
<S> <C> <C>
Investor Relations P. R. Ganapathy, U.S. V. Balakrishnan, India
+1 (510) 742-3030 +91 (80) 852-0440
guns@infosys.com balakv@infosys.com
Media Lisa Kennedy, U.S. Tina George, India
Relations +1 (510) 742-2946 +91 (80) 852-0261 x 7790
lisa_kennedy@infosys.com tina_george@infosys.com
</TABLE>
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Infosys Technologies Limited - Financial Release US GAAP Press Release
June 30, 2003
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
in US$ except ADS data
----------------------------------
THREE MONTHS ENDED JUNE 30,
----------------------------------
2003 2002
----------------------------------
<S> <C> <C>
REVENUES 233,255,636 156,314,869
Cost of revenues (including amortization of stock compensation
expenses of $ 729,993, and $ 628,907 for the three months ended
June 30, 2002 and 2003 respectively) 132,902,389 86,004,769
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GROSS PROFIT 100,353,247 70,310,100
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Operating Expenses:
Selling and marketing expenses 17,402,555 11,297,734
General and administrative expenses 17,724,228 11,859,128
Amortization of stock compensation expense 442,783 513,954
Amortization of intangible assets 749,118 204,121
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Total operating expenses 36,318,684 23,874,937
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OPERATING INCOME 64,034,563 46,435,163
Other income, net 5,300,780 5,096,520
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INCOME BEFORE INCOME TAXES 69,335,343 51,531,683
Provision for income taxes 11,064,797 8,687,383
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NET INCOME 58,270,546 42,844,300
==================================
EARNINGS PER ADS
Basic $ 0.44 $ 0.33
Diluted $ 0.44 $ 0.32
WEIGHTED EQUITY SHARES USED IN COMPUTING EARNINGS PER ADS
Basic 65,583,707 65,566,930
Diluted 66,076,979 66,374,341
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</TABLE>
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Infosys Technologies Limited - Financial Release US GAAP Press Release
June 30, 2003
CONSOLIDATED BALANCE SHEETS AS OF
<TABLE>
<CAPTION>
in US$
---------------------------------------
JUNE 30, 2003 JUNE 30, 2002
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents 381,122,431 235,466,369
Investments in liquid mutual fund units 21,548,714 -
Trade accounts receivable, net of allowances 121,875,899 84,735,380
Deferred tax assets 514,545 541,814
Prepaid expenses and other current assets 25,181,135 28,175,421
Unbilled revenue 21,338,663 -
---------------------------------------
TOTAL CURRENT ASSETS 571,581,387 348,918,984
Property, plant and equipment, net 165,168,590 147,216,819
Intangible assets, net 5,873,532 7,705,557
Deferred tax assets 7,566,810 4,932,021
Investments 3,262,407 7,831,771
Advance income taxes 123,229 -
Other assets 17,506,322 13,613,762
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TOTAL ASSETS 771,082,277 530,218,914
=======================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 144,954 56,260
Client deposits 2,902,094 1,595,670
Other accrued liabilities 53,887,919 30,662,705
Income taxes payable 4,592,757 4,153,534
Unearned revenue 15,912,616 9,244,091
---------------------------------------
TOTAL CURRENT LIABILITIES 77,440,340 45,712,260
Non-current liabilities 5,280,172 5,033,140
Preferred stock of subsidiary
0.0005% Cumulative Convertible Preference Shares,
par value $ 2 each, 4,375,000 preference shares
authorized, issued and outstanding - 4,375,000
preference shares as of June 30, 2003 10,000,000 10,000,000
STOCKHOLDERS' EQUITY
Common stock, $ 0.16 par value;
100,000,000 equity shares authorized, issued and
outstanding - 66,188,530 and 66,249,366 as of
June 30, 2002 and 2003, respectively 8,603,587 8,597,246
Additional paid-in capital 127,398,522 123,202,029
Accumulated other comprehensive income (15,433,919) (45,600,685)
Deferred stock compensation (1,745,376) (6,376,652)
Retained earnings 559,538,951 389,651,576
---------------------------------------
Total stockholders' equity 678,361,765 469,473,514
---------------------------------------
---------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 771,082,277 530,218,914
---------------------------------------
</TABLE>
A detailed analysis of the performance of the company can be downloaded in the
form of an MS Excel worksheet from www.infosys.com.
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