In the three months to December 31, 2002, CGI increased net profit by 20.9% to CAD 37m ($24m) on revenue that grew 14.9% to CAD 589m ($385.8m). Organic revenue growth was 12.2%. CGI’s order backlog also increased by 16.3% year-on-year to CAD 10.7bn ($7bn) at the end of the year.
During the quarter, CGI closed CAD 722.6m ($473m) in outsourcing bookings including deals with manufacturing company Air Liquide and financial services provider Frank Russell. CGI said that the current pipeline of bids for large outsourcing contracts stood at CAD 5bn ($3.3bn), and CGI spokesperson Eileen Murphy said the company is poised to sign a new online government deal with UK-based BT Group Plc during the current quarter.
Revenue from long-term outsourcing contracts accounted for 74% of first-quarter sales including 15% from business process services. Consulting and systems integration represented the remaining 26%. Canada remains CGI’s largest market, accounting for 76% of sales, followed by the US with 18%. Vertically, CGI made 40% of its sales from financial services companies, 23% from telecom operators, 14% from manufacturing firms, and 14% from government organizations.
CGI has recently expanded its BPO capabilities with the acquisition of Underwriters Adjustment Bureau as well as strengthening its domestic position with the takeover of local rival Cognicase Inc, which has put in on course for full-year 2003 sales of between CAD 2.8bn ($1.8bn) and CAD 3bn ($2bn). Chairman and CEO Serge Godin said the company is aiming to become one of the top five pure-play IT and BPO services companies in the world and added that CGI remains on the lookout for further takeovers in Canada, the US and Europe (see separate story).
Source: Computerwire
