CGI announced today that based on current information, third quarter revenue and earnings per share will be below analysts' consensus estimates. Revenue for the third quarter is expected to come in between $315 and $325 million, lower than market expectations. Earnings per share are expected to be between $0.02 and $0.04. CGI's third quarter results will be issued on Wednesday, July 26, 2000.
For the current fiscal year, CGI expects to report revenue slightly higher than in fiscal 1999, which totalled $1.4 billion, while earnings per share should be between $0.21 and $0.24, compared with analysts consensus for the year of $0.35. These results are related primarily to a post-Y2K slowdown in the decision-making process related to new investments in IT and the awarding of large outsourcing contracts.
CGI's Chairman and CEO, Serge Godin, said: "We believe that the second half of fiscal 2000 is transitional and that the current softness in the market has bottomed out. CGI maintains a solid pipeline of bids and proposals currently being reviewed by potential clients and we remain optimistic about the outlook."
"Over the coming months, we will continue actively to pursue a number of business opportunities that we have identified," said Mr. Godin. "We continue to invest in our growth, through such initiatives as our strategic investment program for e-business. While taking certain steps to manage efficiently, we have elected to retain our professionals because we strongly believe that demand will strengthen and that the market will have a need for the expertise of our people as we move forward."
About CGI
CGI is the largest Canadian information technology consulting firm and the fifth largest independent in North America, based on its revenue run rate of CDN$1.5 billion. CGI's order backlog totals approximately CDN$7.2 billion. CGI has 10,000 professionals and provides end-to-end IT services and business solutions to 2,500 clients in Canada, the United States and more than 23 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto exchange (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 100 indexes. Web site: www.cgi.ca
All statements contained in this or any other press release of CGI Group Inc., or in any documentfiled by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the Company, that do not directly and exclusively relate to historical facts, constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Report Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.
This press release may contain forward looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the company's business and results of operations. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the various factors set forth in the Company's annual report or Form 40F filed with the SEC and its Annual Information Form filed with Canadian securities commissions, which important factors are included here by reference.
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For more information:
CGI
André Imbeau
Executive Vice-President and CFO
Paule Doré
Executive Vice-President, Corporate Affairs
(514) 841-3200
