Atos Origin confirms full-year guidance despite drop in revenue
05/08/2009
Atos Origin has confirmed its full-year guidance: slight decrease in revenue, improvement in operating margin of 50 to 100 basis points compared to 2008 and positive cash flow.

Fuente: www.consultant-news.com     Fecha: 05.08.2009

Atos Origin has reported revenue of EUR 2,589 million for the first half of 2009 representing a slight organic decline of 2.4 per cent. Operating margin reached EUR 118 million representing 4.6 per cent of revenue. Adjusted net income (before unusual, abnormal and infrequent items net of tax) totalled EUR 74 million at the same level as the first half of 2008.

Thierry Breton, Chairman and CEO of Atos Origin said: “During the first half of 2009, the Group implemented strong measures to address the deterioration in the economic environment in order to control its cost base and to improve its operational profitability. The implementation of the TOP Program contributed directly to the improvement of the operating margin by circa 50 basis points. The TOP Program will continue to accelerate in the second half of 2009 which means the Group is confirming its guidance that there will be an improvement in operating margin of 50 to 100 basis points this year.”

Consulting revenue continued to decrease during the second quarter of 2009. Revenue was EUR 133 million in the first half, representing an organic decrease of 22.6 per cent compared to H1 2008. As announced by the company last April, tough market conditions have persisted since the beginning of the year and large customers have delayed investment and purchasing decisions.

Systems Integration revenue reached EUR 974 million in the first half of 2009, representing an organic decline of 9.3 per cent. This business line was impacted by a decline in the Benelux (19.1 per cent) where demand dropped significantly and in Iberia / South America (11.9 per cent) where the economic environment was particularly tough. However, the decline was more limited in the United Kingdom (2.9 per cent), in France (5.4 per cent) and in Germany Central Europe / EMA (6.5 per cent).

In Managed Operations, revenue was EUR 1,482 million, representing an organic growth of 5.4 per cent. Managed services increased by 5.1 per cent to EUR 974 million, High Tech Transactional Services (formerly On-Line Services) increased by 6.6 per cent to EUR 434 million and Medical BPO increased by 2.3 per cent to EUR 74 million.

Revenue by GBU for the first half of 2009 varied significantly:

-- The United Kingdom and Atos Worldline reported an organic growth respectively of +6 per cent and +5 per cent;

-- France and Rest of the World reported a decline of less than -2 per cent;

-- Germany Central Europe / EMA and Iberia / South America reported a decline respectively of -5.2 per cent and -6.9 per cent;

-- Benelux reported a decline of more than -11 per cent.

Total number of Group employees declined from 50,975 as of 31 December 2008 to 49,407 as of 30 June 2009. New hirings were reduced by half between the first and second quarter of this year. 2,000 new employees were recruited during the first half of 2009 compared to 5,590 in first half of 2008. The attrition rate has dropped significantly from 13.6 per cent in the first half of 2008 to 7.5 per cent in the first half of 2009.

Dismissals and restructuring impacted more than 1,300 staff, in line with the full year expectations of the Group. Finally, in light of the economic environment, management of Group human resources has been focused on targeted programs aimed at maintaining and renewing critical skills, particularly for young recently graduated engineers.

The number of subcontractors has been reduced by more than 1,400 staff, representing a drop of 36 per cent compared to the end of 2008. This reduction is already higher than the objective of 1,000 for the full year.

Total order entries totalled EUR 2,903 million, up by +10 per cent compared to the level of the first half of 2008 (+12 per cent at same scope and exchange rates). The book to bill ratio for the first half of 2009 reached 112 per cent compared to 98 per cent for the same period last year.

As of 30 June 2009, the full backlog totalled EUR 7.5 billion representing 1.5 year of revenue and up +3 per cent compared to 30 June 2008.

The full qualified pipeline was EUR 2.6 billion up by EUR 400 million compared to 30 June 2008.