Revenues for the period were $1.15Bn, down 5.1% on the same period in 2008 but a solid 2.9% increase on the first quarter. Infosys now anticipates revenues for this fiscal year to be $4.6 billion to $4.62 billion,  a  much more optimistic forecast than made in July.

Earlier this year, Infoysys (Nasdaq:INFY) had stated that it would look to retrench in it's domestic market & Asia, as business conditions in Europe & the US continued to deterioate. So the upbeat quarter & CEO Kris Gopalakrishnan's bullishness have come as quite a surprise.

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

Earnings for the ADS of the company are now expected to be in the region of $2.10, a 7% drop on 2008, however a much improved benchmark from July this year, when Infosys stated a potential overall decline in EPS by up to 12.5%.

Normally, companies that make U-turns on forecasts in the middle of the year tend to be broadcasting warning signals, however after a slew of negative messages, it is good to see Infosys are taking a positive track. Infosys is well known for being cautious on it's financial announcements, so any bullishness from Gopalkrishnan, should be taken at face value. As more than 60% of Infosys revenues are generated in the US, could this be a signal that the recovery is actually starting ?