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Dear #FIRSTNAME,
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Aug 04, 2008 | Financial Results by Dominique Raviart
GFI Informatique has announced Q2 2008 revenues, for the period ending June 30, 2008, up 15.5% to €191.3m. Organic growth was 5.2%.
Breakdown of revenues per geography (and revenue growth on an actual and organic basis) is:
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France €128.8m (+23.9%, +8.3%)
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Iberia €28.1m (-2.1%, -2.1%)
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Italy €15.8m (-3.5%, -3.5%)
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Central Europe €11.7m (+5.4%, +5.4%)
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Canada €6.0m (+29.3%, +15.4%)
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Morocco €1.0m (-1.5%, +0.9%).
In France, revenue growth was driven by the deployment of contracts signed in late 2007. In 2008, the company has signed several contracts in France including:
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La Poste: SAP services
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EADS: software development in J2EE
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EDF: an application management contract
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For a French bank: data migration services delivered from a shared service center
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Aker Yards France: an industrialization contract
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France Telecom: a CRM contract
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Total: consulting services.
Internationally, the company is still impacted by the situation in its Italian and Spanish operations. In Spain, GFI is diversifying its client base after the loss of its contracts with Telefonica to IBM and is concentrating on offerings such as e-government and ERP services. In Italy, GFI is focusing on improving its operating margins at the expense of revenues.
GFI had a headcount of 9,692 (end of June 2008) up 2% from 9,484 (December 2007). Attrition was 6.4% in France in H1 2008 and reached 9.5% within the group. Analyst comments:
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Aug 04, 2008 | Financial Results by Suvradeep Bhattacharjee
TeleTech has announced Q2 2008 revenues, for the period ending 30th June, 2008, up 8.4% to $357.4m compared to Q2 2007.
Q2 2008 revenues by business (and revenue growth) were:
- North American BPO $243.2m (+7.6%)
- International BPO $114.2m (+16.4%).
H1 2008 revenues were up 9.5% to $725.0m compared to H1 2007.
H1 2008 revenues by business (revenue growth) were:
- North American BPO $505.7m (+9.8%)
- International BPO $219.4m (+15.2%).
TeleTech has given revenue growth guidances of 6-8% for full year 2008. Analyst comments:
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Jul 31, 2008 | Financial Results by Rachael Stormonth
Capgemini has announced Q2 2008 revenues, for the period ending 30 June 2008, of €2,189m, a year-over-year increase of 0.3% on Q2 2007 revenues of €2,183m (7.0% growth at constant rates and perimeter). At current rates and perimeter, comparison with H1 2007 revenues was adversely impacted by the appreciation of the Euro against the British pound and the U.S. dollar (up 13% against each currency).
H1 2008 revenues were €4,374m, a year-over-year decrease of 0.5% from H1 2007 revenues of €4,397m (5.3% growth at constant rates and perimeter). H1 2008 operating income was €332m, representing a margin of 7.6%, up from an operating margin of 6.1% in H1 2007.
H1 2008 revenue share (and revenue growth at constant rates and perimeter) by service type was:
- Consulting Services 8.4%, (+7.6%)
- Technology Services 38.7% (+4.1%)
- Local Professional Services (Sogeti) 17.6% (+11.4%)
- Outsourcing Services 35.3% (+3.2%; +13.2% excluding HMRC)
H1 2008 operating margin excluding central costs (with comparative margin in H1 2007) by service type was:
- Consulting Services 13.3% (8.1%)
- Technology Services 9.2% (7.7%)
- Local Professional Services 11.5% (9.6%)
- Outsourcing Services 4.7% (4.5%)
H1 2008 revenues (and revenue growth, actual and at constant rates and perimeter) by service type was:
- North America €811m (-6.2%, +5.4%)
- France €1,057m (+6.9%, +7.0%)
- U.K./Ireland €988m (-15.9%, -3.6%)
- Benelux €632m (+10.8%, +10.8%)
- Nordics €309m (+16.8%, +17.2%)
- Central Europe €291m (+4.8%, +4.4%)
- Iberia €171m (+18.5%) +14.0%)
- Italy €59m (+15.7%, +15.7%)
- Asia Pacific €56m (-9.0%, -4.0%).
The decline in the U.K. is due to the decrease in revenues from the HMRC contract.
H1 2008 operating margin excluding central costs (with comparative margin in H1 2007) by geography was:
- North America 5.8% (5.4%)
- France 5.0% (2.5%)
- U.K./Ireland 8.2% (6.7%)
- Benelux 14.4% (14.3%)
- Nordics 9.1% (7.3%)
- Central Europe 13.6% (11.7%)
- Iberia 5.2% (5.4%)
- Italy 3.1% (0.7%)
- Asia Pacific 28.5%, (15.2%).
H1 2008 revenue share by sector (with comparative revenue share for H1 2007) was:
- Government 25.7% (26.8%)
- Manufacturing, Retail & Distribution 28.1% (27.4%)
- Financial services 17.6% (17.3%)
- Energy & Utilities 12.8% (12.6%)
- Telecom, Media & Networks 9.6% (8.7%)
- Other 6.2% (7.2%).
H1 2008 new bookings for CS/TS/LPS were €3,297m with an overall book-to-bill ratio of 1.15 (1.26 in North America, 1.12 in the Rest of the World. H1 2008 new bookings for Outsourcing Services were €1,222m.
LTM attrition rate at end June 2008 by service type (with comparative rate at end June 2007) was:
- Consulting Services 22.2% (19.4%)
- Technology Services 18.8% (19.1%)
- Outsourcing Services 16.52% (18.0%)
- LPS 19.2% (18.9%)
- Group overall 18.3% (18.7%).
Net cash at end June 2008 was €533m, compared to €889m at end December 2007), with payments during the period including a dividend of €1 per share (€143m) and €32m for acquisitions (primarily a Unisys Latam subsidiary).
Capgemini has updated its revenue guidance for full year 2008 of growth of between 4% and 5% (at constant rates and perimeter). Analyst comments:
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Jul 30, 2008 | Financial Results by Katharina Grimme
As part of the Siemens Group, SIS reported fiscal Q3 2008 (ending 30 June) revenues of €1.26Bn, flat compared to Q3 2007, which SIS states is due to currency impact.
Profit was €64m, down 3% compared to Q3 2007, resulting in a profit margin of 5.1%.
New orders increased by 11% to €1.21m.
Revenue split by country is as follows:
- Germany: €531m
- U.K.: €165m
- U.S.: €125m
- Austria: €84m
- Italy: €44m
- Other: €306m
Revenue split by business unit is as follows:
- Service industries: €422m
- Industry, Energy, Healthcare: €299m
- Public sector: €209m
- Siemens Group: €309m
- Other (incl. global operations, software products): €16m.
Analyst comments:
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Jul 29, 2008 | Financial Results by Rachael Stormonth
Atos Origin has announced H1 2008 results, both:
- Statutory results, i.e. including one month of Italian operations and six months of AEMS Exchange
- "Future scope" results, i.e. excluding Italy (sold in January 2008) and AEMS Exchange (to be transferred to NYSE Euronext in Q3 2008).
Statutory H1 2008 revenue was €2,864m, down 0.9% yr-over-yr, but organic growth (after exchange rate effects and disposals) of 6.4%
"Future scope" revenue was €2,745m, up 3.6% yr-over-yr, representing organic growth of 6.8%
In terms of operating income excluding central corporate costs:, in H1 2008
- Statutory operating income was €124m, representing an operating margin of 4.3% (H1 2007: 4.1%)
- "Future scope" operating income was €123, representing an operating margin of 4.5%.
Separating out Italy nd AEMS Exchange, H1 2008 revenues (and revenue growth) by service type were:
- Consulting €179m (-5.5%)
- Systems Integration €1,116m ( +4.4%)
- Managed Operations €1,450m +4.1%)
- Italy (just 1 month of operations €20m (-85.4%)
- AEMS Exchange €99m (-5.9%).
Separating out Italy and AEMS Exchange, H1 2008 operating margin (with H1 2007 operating margin) by service type was:
- Consulting €8.0m , 4.5% (H1 2007, 6.1%)
- Systems Integration €40.4m, 3.6% (H1 2007: 4.0%)
- Managed Operations €113.1m, 7.8% ( +6.8%)
- Italy €-1.1m, -5.5% (-3.9%)
- AEMS Exchange €2.2m, 2.2% (11.7%)
- Corporate costs -1.9% (-1.7%)
Consulting experienced 13% organic revenue growth and an improved operating margin in France, but negative growth in the U.K. and the Netherlands. Consulting attrition rate was 23.6% (H1 2007: 26.7%).
Systems integration saw revenue growth in the U.K., Germany, France and Rest of Europe, but the Netherlands was flat. Utilization rate was stable at 80%. Systems integration attrition rate was 14.7% (H1 2007: 15.9%).
Managed Operations saw revenue growth in all geographies apart from The Netherlands, which has been impacted by the loss of business from KPN. Managed Operations attrition rate was 11.2% (H1 2007: 12.2%)
Excluding Italy and AEMS Exchange, H1 2008 revenues (and revenue growth) by region were:
- France €779m (+6.6%)
- U.K. €491m (-2.1%)
- The Netherlands €538m (-1.4%)
- Germany and Central Europe €317m (+8.3%)
- Other EMEA €439m (+13.1%)
- Americas €91m (-23.3%)
- APAC €90m (+22.8%)
Revenue growth in the Netherlands was impacted by the KPN reinsourcing of desktop services, and in the Americas by one-off revenues of €28m in 2007 from the PanAmerican games in Brazil (total revenue decline in the region was €23m).
Excluding Italy and AEMS Exchange, H1 2008 operating margin (with H1 2007 operating margin) by region were:
- France 4.4% (3.2%)
- U.K. 6.2% (2.2%)
- The Netherlands 8.6% (10.1%)
- Germany and Central Europe 8.2% (7.3%)
- Other EMEA 9.4% (9.0%)
- Americas 1.4% (4.0%)
- APAC -5.4% (+8.2%)
- Corporate costs -1.9% (-1.7%)
Atos Origin found challenges in recruitment in H1 2008 and had to increase its number of sub-contractors by 1,000 to 4,000 overall; the company anticipates reducing subcontractor numbers in H2 2008.
The net debt was €514m at the end of June 2008 compared with €509m at the end of June 2007.
Order entry is €2.7Bn, up 14% yr-over-yr and at constant exchange rates up 17%.
Book to bill ratio is 98% compared to 89% in H1 07. H1 2008 book to bill ratio by discipline is:
- Consulting 102% (H1 207: 95%)
- Systems Integration 102% (H1 2007: 101%)
- Managed Operations 95% (H1 2007: 80%).
For the last 12 months the group book to bill ratio is114% with an order entry of €6.2Bn.
Full backlog at end June 2008 was €7.5Bn, representing 1.4 year of revenue.
Headcount at end June 2008 was 50,655, compared with 51,704 at end December 2007. The difference includes:
- A change in scope of 2,433
- 3,222 leavers
- 974 lay offs
- 5,590 new hires.
Headcount in low cost countries was 6,000, an increase of 840 during the half year. The intention is to have 20% of staff based in low cost countries by end 2009.
Atos Origin confirmed the following objectives for 2008 (excluding Italy and AEMS Exchange):
- Revenue organic above 5% (compared to initial guidance of 4%)
- Operating margin of 5.6 % after operating costs of Transformation Plan (compared to 4.6% in 2007)
- Net debt reduction of €100m compared to December 2007 after dividends, cash out for the pensions in the UK and proceeds from disposals of Italy and AEMS Exchange.
Analyst comments:
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Jul 28, 2008 | Financial Results by John Willmott
EDS has announced Q2 2008 revenues, for the period ending 30 June 2008, of $5,623m, an increase of 3.2% (a decrease of 2% organic) compared to Q2 2007.
Q2 2008 revenues (and revenue growth in constant currency) by segment were:
- Americas $2.49Bn (-6%)
- EMEA $1.89Bn (+3%)
- Asia Pacific $588m (+11%)
- U.S. Government $657m (+6%).
Q2 2008 signings increased 27% to $5.4Bn.
H1 2008 revenues increased 3.0% to $10,988m. Analyst comments:
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Jul 28, 2008 | New Offerings by John Willmott
IBM has launched centers of excellence in China, Mexico, and India to accelerate its growth in these emerging economies.
The new centers are:
- Shanghai: A Banking Center of Excellence
- Guadalajara: A Retail Innovation Center
- Pune: Service Management Center of Excellence.
The banking center of excellence in Shanghai will aim to support leading Chinese banks in modernizing their payment systems. In particular, IBM is targeting the design and implementation of next generation payment and core banking systems for China's leading banks.
The Guadalajara retail innovation center will act as a showcase to assist retailers in creating and testing in-store retail solutions with the aim of helping them build advocacy and loyalty for their brands. Analyst comments:
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Jul 28, 2008 | Financial Results by Rachael Stormonth
Perot Systems has announced Q2 2008 revenues, for the period ending 30 June 2008, of $705m, an increase of 11% compared to Q2 2007 revenue of $635m.
Q2 3008 operating margin was 6.7%, up from a margin of 6.6% in Q2 2007.
Q2 2007 revenues (and revenue growth) by segment were:
- Industry solutions $482m (+11%)
- - Healthcare $328m (+3%)
- - Commercial solutions $154m (+30%)
- Government services $161m (+11%)
- Consulting and application solutions $92m (+23%)
- Inter-segment eliminations ($30m). These relate to the revenue associated with services provided by Consulting and Applications Solutions to other lines of business
The acquisitions of JJWild and HighQ-IT contributed $20m of revenue in Q2 2008, which is reported in the Industry Solutions segment (JJWild reported in Healthcare, and HighQ-IT reported in Commercial).
The acquisition of Original Solutions Ltd. contributed $2m of revenue in Q2 2008, reported in the Consulting and Applications Solutions segment.
In closer detail Q2 2008 revenue share by vertical was:
- Healthcare 46%
- Commercial 22%
- Government 23%:
- - Homeland & National Security 6%
- - Defense 7%
- - Civilian 10%
- Financial services 5%
- Other 4%
Q2 2008 revenue share by service type was:
- Systems integration/application management 45%
- Infrastructure services 35%
- BPO 20%.
New contract signings in Q2 2008 were $261m (Q2 207: $242m), , bringing the total value of new contracts signed during the past 12 months to $1.8Bn
Perot Systems has given revenue guidance for Q3 2008 of $700-$715m. Analyst comments:
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Jul 28, 2008 | Financial Results by Dominique Raviart
industry: Financial Services Sopra has announced Q2 2008 revenues, for the period ending June 30 2008, up 15.1% to €280.9m. Organic growth was 14.0%.
Revenue breakdown by activity (and revenue growth on an actual and organic basis) was:
- Orga Consultants €12.0m (+8.4%, +8.4%)
- Application services France €172m (+21.3%, +19.3%)
- Application services Europe €57.6m (+9.7%, +7.1%)
- Axway €38.4m '+1.3%, +4.9%).
Orga Consultants, the business consulting arm of Sopra is predicting a slight acceleration of its growth in H2.
The activity of Sopra in its domestic market in application services has been driven by recent large AM wins, demand for nearshore and offshore services and several contracts for its proprietary application business. Demand from public sector, utilities and telecom services as well as from several manufacturing sectors and financial services is solid.
Internationally, in application services, Sopra's U.K. and Spanish operations are growing by more than 10%.
Axway, the middleware ISV subsidiary of Sopra was impacted by several clients delaying their investment decisions in Germany and France and unfavorable exchange rates in the U.K. and the U.S.
Sopra is maintaining its guidance to achieve an organic growth stronger than the market. Analyst comments:
Regards, Rachael Stormonth
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Tthe recent performance of Sopra and now GFI show the increasing role that mid-sized software services factory-centric contracts are playing for local vendors. GFI is deriving more revenues from such contracts and is a bit less dependent on the actual number of working days each quarter.
GFI has incurred a modest headcount growth during the past semester in both its international and French operations. Earlier in the year, the company had limited net recruitments and relied on the use of subcontractors. Currently, the group is using c. 600 subcontractors or a 6% subcontractor ratio. By comparison, Atos Origin's subcontractor ratio has also increased to nearly 7.9%.