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CGI Posts Strong Q4 and Year

Posted on: Wednesday, 12 November 2008, 06:00 CST

Canadian IT services vendor CGI Group has reported a 3% increase in revenue to CAD 929.19m ($776.68m) for the fourth quarter 2008, compared to CAD 903.7m ($755.3m) in the year-ago quarter.

For the year, it reported a 24% increase in net income to CAD 292.76m ($244.69m) compared to CAD 236.4m ($197.65m) a year ago, on revenue up 2% at CAD 3.7 billion ($3.09 billion).

During the quarter, earnings from continuing operations grew 16% to CAD 75.16m ($62.8m), while diluted EPS grew 26% to CAD 0.24 ($0.20). Adjusted EBIT grew 4% to CAD 105.1m ($87.87m). Cash generated by operating activities was CAD 83.1m ($69.46m). It had new contract signings of CAD 982m ($820.8m).

For fiscal 2008, IT services revenue fell 3% to CAD 1.52 billion ($1.26 billion), while business process services revenue grew 21% to CAD 485.45m ($405.28m) and system integration and consulting revenue grew 2% to CAD 1.69 billion ($1.4 billion). Geographically, Canada revenue rose 6% to CAD 2.25 billion ($1.87 billion), US revenue fell 6% to CAD 1.15 billion ($961.4m), and Europe and Asia Pacific revenue increased 8% to CAD 300.55m ($250.88m).

Michael E Roach, president and chief executive at CGI Group, said: "We enter fiscal 2009 in an excellent position strategically, operationally, and financially. We have a strong balance sheet, a CAD 1.5 billion ($1.25 billion) largely untapped credit facility secured through fiscal 2012, and an experienced team dedicated to operational excellence. Approximately 55%-60% of our revenue is long-term, recurring, or repeatable and we maintain a backlog equal to 3.1 times our annual revenue."

Source: Datamonitor

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