Infy ADS outlook

Infosys Technologies has modified its outlook for its American Depository Shares, traded on the Nasdaq stock exchange under the symbol Infy, following a change in the date when a certain accounting standard will apply to the company in the US.

The company has revised its outlook, under US accounting rules, of consolidated earnings per ADS to between $1.95 and $1.98 for the fiscal-ending March 31, 2006 resulting in a growth of between 24 per cent and 26 per cent compared with fiscal-ended March 31.

The company said "there is no revision in the outlook of consolidated revenues for the fiscal year-ending March 31, 2006 or in the outlook under Indian GAAP of income and earnings per share for the year ending March 31, 2006" in a recent filing with the Securities Exchange Commission in America.

The firm said it had earlier provided its financial outlook for the fiscal year ending March 31, 2006 of consolidated earnings per ADS of between $1.92 and $1.95. This reflected an impact, of mandatory adoption of a standard, SFAS 123R, on share-based payment, from July 1, 2005.

SEC, however, "announced changes to the implementation of the standard, with the company now being required to adopt SFAS 123R only from April 1, 2006. So the standard will not have any impact on the company's outlook for the fiscal year ending March 31, 2006," Infosys said.