Infosys tops 3Q estimates
Shares in the information technology (IT) consulting and service provider closed yesterday's session off 1.91 to 92.84.
For the quarter, the company earned $34.0 million, or 26 cents a share, on revenue of $114.9 million. First Call estimates were for 25 cents a share.
Year-over-year, the company's numbers topped the 12 cents a share earned on revenues of $52.2 million in the same period last year.
E-commerce business as a percentage of total revenue dropped sequentially, making up 28.3 percent total third quarter revenue.
The company also lowered its exposure to the dot-com slowdown, cutting this business segment to 5.8 percent of total revenue, down from 9.5 percent during the previous quarter. Revenue from telecommunication and other start-up companies increased during the period to 3.5 percent of total revenue.
During the period, U.S.-based e-commerce start-up EC Cubed Inc., in which Infosys had a $3 million investment, filed for liquidation.
Infosys said it has trade receivables amounting to about $1 million for services rendered to EC Cubed. Pending the conclusion of liquidation proceedings, Infosys said it has provided for the entire amount of the investment and receivables in its income statement for the third quarter.