Atos Origin confirms FY2010 forecast
14/10/2010
Strong order entry expected for the fourth quarter 2010, with Book to Bill anticipated to be at least 120 per cent.


Fuente:  http://www.consultant-news.com  Fecha: 14.10.2010

Atos Origin confirms FY2010 forecast

Atos Origin, the international IT services company, reported revenue of EUR 1.21 billion for the third quarter of 2010, representing a decline of 3.5 per cent compared to the same period last year, at same scope and exchange rates.

In the first nine months of 2010, the revenue was EUR 3,704 million, representing an organic decline of 4.3 per cent.

Revenues by service line

Representing 37 per cent of the Group, Managed Services revenue was EUR 452 million in the third quarter down 6.9 per cent compared to the third quarter of 2009, of which 4 per cent is related to the expected ramp-down of Arcandor in Germany.

Representing 34 per cent of the Group, Systems Integration revenue was EUR 412 million, down 3.5 per cent in the third quarter compared to a decline of 5.6 per cent in the first half of 2010. The improvement came mainly from France, where the activity improved +6 per cent, and from the double digit growth posted by Asia and offshore countries.

Representing 21 per cent of the Group, Hi-Tech Transactional Services (HTTS) revenue was EUR 258 million, up 5.5 per cent compared to the third quarter of 2009. Growth came from the payments activity, which posted a 7.3 per cent growth and from electronic services which increased 5.5 per cent. Decline in the Financial Markets entity was limited to 5.5 per cent.

Representing 4 per cent of the Group, Consulting revenue was EUR 48 million, down 11.2 per cent compared to a decline of 17 per cent in the first half of 2010. Consulting is back to positive growth in France and the United Kingdom. It remains challenging in the Benelux due to the combination of headcount reduction and the significant pre-sales project support that is time consuming for the consulting teams.

Representing 3 per cent of the Group, Medical BPO revenue was EUR 40 million, down 7.5 per cent, i.e. EUR 4 million, as a result of the moratorium which came to an end on 10 September for the Group.

Revenue by region

In France, revenue was EUR 265 million up 3.6 per cent compared to the third quarter of 2009. The country returned to growth after stabilising in the first half. The cyclical activities, Consulting and Systems Integration, grew respectively by 5 and 6 per cent and Managed Services slightly increased in the third quarter, following a decline in the first half.

Revenue in the Benelux was EUR 222 million, down 3.8 per cent compared to a decline of 11.2 per cent in the first half of 2010. It maintained its revenue in Managed Services at the same level as that in 2009. Systems Integration declined 2.5 per cent compared to a decline of 27.5 per cent in the third quarter of 2009. The limited decline in revenue in the Benelux was the result of the stabilization of prices and the new contracts in financial services.

In the United Kingdom, revenue totalled EUR 226 million down 7.8 per cent compared to the third quarter of 2009. Cyclical activities, Consulting and Systems Integration, limited their decline to 2.7 per cent, while Managed Services revenue dropped 17.7 per cent compared to the third quarter of 2009 when growth was particularly strong. Business has nevertheless been resilient. At the beginning of September Atos Origin was the first supplier to the British Government to sign a Memorandum of Understanding, following the moratorium put in place by the new Government. As indicated in the press release issued on 10 September, Atos Origin will continue to deliver all its existing IT contracts and looks for further business opportunities with UK Government.

Atos Worldline revenue for the third quarter was EUR 216 million, up 4.5 per cent compared to the same period last year. The payments activity posted a 6.9 per cent growth thanks to higher volumes, and Electronic Services increased by 7.5 per cent, while Financial Markets continued to decline as anticipated.

In Germany/CEMA, revenue was EUR 110 million, representing a decline of 20.9 per cent compared to last year, almost two thirds of which are due to the expected ramp down of Arcandor. Excluding this effect, third quarter revenue in Germany was flat year on year.

In Iberia, revenue was EUR 65 million down 13.6 per cent. This geography, where 80 per cent of the activity is in Systems Integration and Consulting, is still affected by a tough economic environment, resulting in price pressures and less deals generally in the market place.

Other countries reported revenue of EUR 105 million, up 4.5 per cent thanks to the growth in Asia and offshore countries.

2010 objectives

The Group’s objective is to reach in the fourth quarter a book to bill of at least 120 per cent, in order to achieve a 109 per cent book to bill for the full year in 2010, compared to 100 per cent for the full year 2009.

On 30 September 2010, the full backlog was EUR 7.2 billion, representing 1.4 years of revenue as at 30 June 2010 and at 30 September 2009.

On 30 September 2010, the weighted full pipeline was EUR 2.8 billion, compared to EUR 2.6 billion at 30 June 2010 and 2.8 billion at 30 September 2009.

As part of its 2009-2011 plan to improve its profitability, the Group confirms its ambition to increase its operating margin by 50 to 100 basis points in 2010.

Due to the Arcandor bankruptcy, the Group expects in 2010 a slight revenue organic decrease, however at a lesser extent than the one achieved in 2009.