Friday, October 12, 2012

Tech Shockers: Infosys Ltd (NASDAQ:INFY) & Advanced Micro Devices, Inc. (NYSE:AMD)

Indian software exporter Infosys Ltd ADR(NASDAQ:INFY) on Friday cuts its outlook for fiscal year 2013 citing global uncertainties facing the industry.

The company, which is a bellwether for the Indian technology sector, said that it expected earnings per ADS at a minimum of $2.97 compared to its earlier forecast of $3.03.

In the Indian markets shares in the company fell 5.4 percent to 2,395.35 rupees ($45), the lowest in six months, after having plunged 8.8 percent in intra-day deals. Shares of the company slumped 7% in pre market session in the New York stock Exchange.

The outlook however does not include the acquisition of Lodestone, a company that it agreed to buy last month for $350 million.

Revenues for 2013 are expected to be at $7.34 billion, a rise of 5 percent from a year earlier. The company also warned hat its operating profit margin would decline by 200 basis points for the year.

Net profit at Infosys, for the September quarter rose to $431 million, a 5 percent rise from a year ago, while revenues rose nearly 3 percent to $1.8 billion. Earnings per ADS were $0.75, a rise of 4.2 percent.

Meanwhile shares of chip maker Advanced Micro Devices, Inc.(NYSE:AMD) fell nearly 9.70 percent after the company warned of a 10 percent fall in revenues in the third quarter compared to the second quarter.

The company cited weak global demand for the expected fall. The company had previously forecast a 1 percent revenue decline.

The company, which makes microprocessors for computers, also wrote down the value of its inventory by $100 million as it is witnessing a fall in demand for some of its products, it said.

In addition the prices of some of its products have also been slashed to stimulate demand.

AMD shares fell 9.70 percent to $2.89 in pre-market trades. The company will declare its quarterly results on Oct. 18.

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