Compagnie Generale d’Informatique SA, France’s sixth largest software house, has seen profitability decline for its fiscal year ending August 30 due to ‘management errors’ at its scientific and technical engineering division. Net profit fell 10.3% to the equivalent fo $27.4m, although revenues rose 13.6% to $411m. Before minority interests, but after exceptional charges from four acquisitions, Berwyn, Pennsylvania-based Yourdon Inc, Langenfeld, Germany-based Interprogram GmbH, as well as Prodstar SA, Paris, and Decision International SA, Boulougne, consolidated net profit fell 13.4% to $26.9m. The scientific and technical engineering arm made an operating loss of $740,700 compared with profits of $5.2m last time. Managing director Robert Mallet explained, At the outset, we didn’t sufficiently reinforce our sales activity. Then, we conceived of the financial year 1991 to 1992 as a continuum of previous years, and launched a hiring campaign that corresponded to double-digit sales growth, which did not materialise. In the end, it took us six months to take the necessary ad hoc measures, but it was too late for the results to show their signs. Nonetheless, he did say that the division should be profitable this coming year, although it probably will not reach the $5.2m of fiscal year 1990 to 1991. Revenues from CGI’s personnel and financial management software range, Sigagip, were up 8% worldwide. The growth, said deputy managing director Bernard Chapot, was due the company’s efforts at increasing distribution in Europe. That’s an effort that takes lots of resources but doesn’t bring in much revenue. In Italy, for example, we created an Italian version of Sigagip personnel software and got it installed at Rinascente and at Fiat SpA’s distribution company. It was difficult, but now there is no real competition for Sigagip in Italy. One could say that we sacrificed a bit of revenue to capture market share. CGI revenues in the US were up 8%, bringing in a pre-tax profit of $2m as opposed to last year’s losses. Chapot said he has high hopes for the newly-acquired Prodstar in the US, which is already bringing in encouraging results in Mexico. He sees the first few months of fiscal 1993 as more encouraging than the last, feeling that the recession is starting to stabilise.