BANGALORE, India ( TheStreet) -- Infosys ( INFY), India's second-largest exporter of software, said earnings in the third quarter rose 14.2%, but the result came in weaker than expected because of a strong rupee.

Infosys earned 17.80 billion rupees ($396 million) in the third quarter up from 15.59 billion rupees a year earlier. Revenue rose 23.8% to 71.06 billion rupees.

Analysts surveyed by Thomson Reuters expected Infosys to earn 18.2 billion rupees in the quarter.

Infosys raised its earnings and revenue forecasts for the fiscal year ending in March but warned in a statement Thursday that "the weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth."

-- Written by Joseph Woelfel

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