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VMware and Infosys Under StockCall's Microscope: Technology Services Companies on Growth Trajectory

INFY
VMware and Infosys Under StockCall's Microscope: Technology Services Companies on Growth Trajectory

LONDON, February 19, 2013 /PRNewswire/ --

Technology companies are delivering value both on and off the stock market. The companies are growing through acquisitions and by expanding into overseas market. Prominent cloud company, VMware Inc. (NYSE: VMW) is acquiring Vristo to increase its reach in the market. The stock has not performed up to mark so far this year, but is likely to pick up on the back of new cost-cutting measures. Infosys Ltd. (NYSE: INFY), on the other hand, posted strong results and is looking to remain on the same trajectory. StockCall has released full comprehensive research on VMware and Infosys and this free technical analysis can be downloaded by signing up at

http://www.stockcall.com/technicalanalysis

VMware Cuts Headcount

VMware is on the verge of acquiring Vristo. The deal will help VMware in enhancing its storage product portfolio. The company will also license technologies acquired through the deal, adding new revenue streams. However, the companies did not disclose the financial terms of the deal. The acquisition is expected to be a positive catalyst for VMware. Free technical analysis on VMware Inc. available by signing up at

http://www.StockCall.com/VMW021913.pdf  

VMware provided a rather cautious picture with its recent earnings announcement, despite posting 22 percent increase in its revenue for the year. Its total revenue stood at $4.6 billion. At the very same time, its rate of growth decreased from 32 percent as opposed to what it had recorded for the previous period. The company now plans to cut its workforce to curtail costs. VMware is planning to slash its workforce by 900 which will help it to boost its margins.

The stock lost 20 percent of its value so far this year. The company's new measures to restore its viability are likely to have a positive impact on its stock price. VMware plans to grow through acquisitions as well, adding new products and markets to its portfolio. The company's management seeks to grow its revenue to the $10 billion mark in a couple of years. VMware Inc. offers a good long-term investment opportunity.

Infosys Posts Strong Results

Infosys is up 20 percent on a YTD basis but the stock still seems to have steam left. The stock surged following its strong result announcement in January. Infosys is holding onto its margins as the company chases premium contracts. Its management is averse to cutting costs in a bid to receive contracts which may impact on its volume but will augment profits. The company commands premium over its peers. Register today and access the free research on Infosys Ltd. at

http://www.StockCall.com/INFY021913.pdf  

Infosys reported 6.3 percent growth in its revenue for the quarter to $1.911 billion. Its net income per share stood at 76 cents, beating consensus estimate of 72 cents per share in income. While the company is on steady ground, to show further growth in its stock price Infosys Ltd. needs to bring some zest to its performance metrics. The company shows linear growth where its revenue increase directly correlates with its headcount. This also means that the company so far had been unable to push its person efficiency upwards. This is completely in contrast with its more established international competitors. With the impending increase in corporate IT budget, Infosys seems to be all set, but it also needs to address its efficiency and diversification issues.

About StockCall.com

StockCall.com is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at

http://www.stockcall.com



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