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Logica drags CGI down, but integration is on track says Roach

Michael Roach

Montreal: CGI, the Canadian IT services consultancy that bought Logica in August, this week reported a net loss of $168 million Canadian in its fourth quarter, compared to a $69 million profit in the same quarter last year.

The firm says its integration of Logica is on track, but it has recorded $255 million in acquisition and integration costs related to the Logica transaction.

For the full year it saw net earnings down from $438 million to $131 million on revenue up 13% to $4.8 billion.

Fiscal 2012 Highlights

  • Revenue of $4.8 billion, up 13.0% or 12.1% on a constant currency basis;
  • Bookings of $5.2 billion, or 109% of revenue;
  • Accelerating profitable growth and bookings in US operations;
  • Backlog of $17.6 billion;
  • Strong underlying profitability delivered across legacy CGI operations;

The company generated fourth quarter revenue of $1.04 billion, representing year-over-year growth of 3.6% or 3.0% at constant currency.

"I am pleased with our overall performance as we continue to focus on helping clients meet their business objectives," commented Michael Roach, President and CEO. "We are well positioned operationally and financially to continue to execute our profitable growth strategy in F2013 and beyond."

"The integration of Logica into the CGI operational model is well underway and being implemented as planned," added Roach. "We continue to expect the combination to generate an accretion rate of 25% to 30% in fiscal 2013, excluding acquisition related and integration costs."

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