Infosys Raises Forecast as Climate Improves

Updated from 3:56 a.m. EDT

MUMBAI, India (TheStreet) -- Infosys Technologies (INFY Quote) said second-quarter net income fell 0.9%, but it raised its fiscal-year revenue forecast amid signs of a global software turnaround.

Earnings in the quarter were $317 million based on international accounting standards, beating its own forecast.

Revenue in the quarter fell 5.1% to $1.15 billion, but India's second largest outsourcing firm said it expects revenue for the fiscal year of $4.6 billion to $4.62 billion, about 1% less than last year, but ahead of a forecast it made over the summer.

The company gets nearly two-thirds of its revenue from North America and one-third of revenue from banking and financial services companies.

"In the second quarter, the business climate has improved," said CEO S. Gopalakrishnan, in a statement Friday. "Clients are now looking to invest in a few strategic initiatives and relationships to maximize value from opportunities when the economic downturn ends."

Infosys said earnings per American Depository share for the fiscal year would be $2.09 to $2.10, 6.7% to 7.1% less than last year. But that's an improvement over its July forecast of an 11.1% to 12.4% decline in per-share earnings.

-- Reported by Joseph Woelfel in New York .

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