[R]1:00PM New York—Infosys Technologies sees 42.2% higher profit, raises forecast.[/R]

Infosys Technologies Ltd. (INFY: chart), the India technology firm, reported third quarter revenue increase of 32% to $1.1 billion compared with $821 million reported in the year-ago quarter.

Over the second quarter, revenues gained 6% with the United States accounting for 62% and Europe for 28% of Infosys'' revenues.

In the quarter through December 31, 2007, Infosys added 47 new clients, including a European bank and a top global brokerage firm that helped lift revenues.

Net income gained 42.2% to $310 million from $218 million a year earlier, helped by new outsourcing orders and tax refunds.

The company said earnings per American depositary share rose to 54 cents, up from 39 cents last year. Diluted earnings gained 42.1% to 54 cents per share from 38 cents per share posted same period in 2006. Excluding a tax reversal of $13 million, earnings would have been 52 cents per share.

Shares of Infosys, India''s number two software firm after Tata, as measured by revenue, dropped 4% to $41 in early trading Friday. In morning trade Monday, the stock was fractionally up 16 cents or 0.40% at $40.31.

In the nine months to December 31, 2007, net revenues climbed 36.4% to $3 billion from $2.2 billion a year ago.

Earnings rose 42.3% to $844 million or $1.48 per share from $593 or $1.04 per share posted in 2006.

The company''s earnings guidance was in line with expectations. Infosys predicts growth in income of 18.7% to 19.3% for the quarter ending in March.

Revenues are expected to rise in the range of $1.13 billion to $1.14 billion or between 31.6% to 32.3%.

Infosys expects fourth quarter American depository share earnings to rise 17.4% to 54 cents and $2.02 at full year.

For fiscal 2008, Infosys has targeted income to increase 19.7% to 19.9%, or $4.2 billion to $4.3 billion. Revenues are expected to rise in the range $4.17 billion and $4.18 billion.

Analysts polled by Thomson Financial expect earnings of 54 cents per share in the current quarter on revenues of $1.14 billion.

For the full fiscal year, earnings are guided at $1.98 per share and revenues at $4.19 billion.

For the fourth quarter, Infosys primary concerns are how to manage its rapid expansion in size and how to handle the appreciation of the rupee, Gopalakrishnan noted. The currency rose about 12.5% against the dollar last year.

The company added about 8,100 employees in the review period, and has been adding more each other previous quarter. Infosys has nearly 90,000 employees worldwide.

Infosys chief executive S. Gopalakrishnan said there were opportunities for growth in the shrinking U.S. market, from where it derives a significant portion of its revenue, especially from servicing banking firms.

""We see several opportunities for growth in the marketplace and have concluded several multi-year, multi-million deals during the quarter,"" said S. Gopalakrishnan.

""So far, the crisis is creating opportunities for us to grow our business. The banking and capital markets sector saw average revenue growth of 8.6%, higher than the company average of 6.1%.""