Atos Origin 1Q results in line with company forecast
23/04/2009
Atos Origin reported first quarter 2009 results that were in line with its previous forecast, expending a 0.6% drop in revenues at activity slowed at its consulting and systems integration businesses, notably in the Netherlands.

Fuente: www.consultant-news.com  Fecha: 23.04.2009

Atos Origin 1Q results in line with company forecast

 Atos Origin said revenue for the first three months of the year totalled EUR1.29 billion, compared with EUR1.30 billion in the same period a year ago. The company noted that the 2008 figure is pro forma, excluding change in scope related to the disposals made in 2008 in Italy, Thailand, Mexico, and the Netherlands. Figures also exclude the negative impact of the weakness of the British pound compared to the euro.

Consulting revenue reached EUR 72 million representing a decrease of 15.2 per cent compared to a 2.4 per cent drop for the last quarter of 2008. Atos Origin noted that in all countries large customers delayed decisions on investment. The company added that the tough market conditions in consulting should pursue this year and has reinforced the “actions initiated at the end of 2008 on staff costs.”

Systems Integration revenue reached EUR 501 million in the first quarter 2009, representing a drop of 6.2 per cent. The United Kingdom continued to report a satisfactory organic growth at 6 per cent and revenue in Germany and Central Europe was almost stable. The other geographical areas had a revenue decrease, particularly in The Netherlands due to a strong slowdown in demand, and in Spain due to the tough economic environment.

Managed Operations revenue reached EUR 721 million in the first quarter 2009, representing an organic growth of 5.5 per cent. This performance was achieved thanks to the contribution from the United Kingdom at a 11.2 per cent growth and Atos Worldline at a 6.8 per cent growth mainly in France and in Germany.

Atos Origin confirmed its objectives for the full year of 2009, noting its priorities for the year are to "improve the operational performance and the cash flow generation." Origin also aims to increase its earnings before interest and tax, or EBIT, by 50 to 100 basis points in 2009, as the result of a new action plan to get the company's profitability back on track.

During the first quarter of 2009, the total order entries reached EUR 1 347 million, representing an organic growth of 3 per cent compared to the first quarter 2008.

By service line, the book to bill ratio was 83 per cent in Consulting, 104 per cent in Systems Integration and 106 per cent in Managed Operations.

At 31 March 2009, the full backlog was EUR 7.5 billion up by 3.5 per cent compared to the level reached at 31 March 2008. This figure represents 1.4 years of revenue