Montreal, Canada-based CGI reported a 35% surge in net profit to CAD 44.8m ($30.9m) during the three months ended March 31, on revenue that grew 38.4% to CAD 736.1m ($507.9m). At the end of the period, CGI had a backlog of contracts valued at CAD 11.2bn ($7.72m) averaging 7.5 years in duration, including a pipeline of outsourcing projects valued at CAD 5bn ($3.45m). During the quarter the company actually signed CAD 614.4m ($423.9m) in new contracts.
Serge Godin, CGI’s chairman and CEO said: We achieved all of the goals we set out to accomplish for the integration of five recent acquisitions and are pleased with the financial results in the quarter. With the most critical integration phases completed, we can now turn our full attention towards achieving strong organic growth going forward.
During the period, CGI completed its acquisition of Canadian software and services rival Cognicase Inc for CAD 347.3m ($239.6m), of which CAD 187.5m ($129.4m) was paid in cash. And the company also said it had met all of its financial targets relating to other recent acquisitions including its February purchase of management consultancy Cornerstone, insurance underwriting firm INSpire and business process outsourcing (BPO) firm UAB last November. CGI added almost 5,000 new staff through the five deals.
CGI said it is sticking to previous guidance for full year 2003 with revenue of between CAD 2.8bn ($1.93bn) and CAD 3bn ($2.07bn), and earnings per share of between CAD 0.45 and CAD 0.50, not including potential outsourcing projects or acquisitions that may add CAD 100m ($69m) in annual revenue.
CGI had been widely expected to make a bid for its Canadian services rival Xwave Solutions, which parent firm Aliant Inc put up for sale in January. However, Godin’s comment that CGI will now be focusing on achieving strong organic growth suggests that the company may have reconsidered any possible move.
Source: Computerwire
