Atos Origin Q1 results in line with company forecast
15/04/2010
Order entries up for the first quarter were up 17 per cent on last year period. Atos Origin Q1 results in line with company forecast

Fuente:   www.consultant-news.com    Fecha:  15.04.2010

Atos Origin, the international IT services company, reported revenue of EUR 1.231 billion for the first quarter of 2010 representing a decline of 5.5 per cent at same scope and exchange rates. The company said the results are in line with the full year revenue objective which takes into account that the revenue in the first quarter of 2009 was flat compared to the first quarter of 2008 at -0.6%.

Total order entries for the first quarter of 2010 were EUR 1.577 billion, up 17 per cent organically compared to the same period last year. The book to bill ratio was 128 per cent compared to 104 per cent for the first quarter of 2009.

On 31 March 2010, the full order backlog was EUR 7.2 billion, representing 1.4 year of revenue, compared to EUR 6.9 billion at 31 December 2009.

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

Revenue by service line

Representing 5 per cent of the total, Consulting revenue was EUR 57 million, down 20 per cent compared to a14 per cent and a 34 per cent declines in the fourth and third quarters respectively of last year. The decline was limited to 2 per cent in France but The Netherlands and the United Kingdom declined further despite first signs of recovery. The weighted pipeline increased 17 per cent compared to December 2009 and 47 per cent compared to March 2009. The utilisation rate was 69 per cent during the first quarter of 2010 thanks to tight management of the workforce.

Representing 36 per cent of the Group, Managed Services revenue was EUR 448 million in the first quarter, down 4 per cent, of which 3 per cent was due to the ramp-down, as expected, of the Arcandor contract in Germany.

Representing 36 per cent of the Group, Systems Integration revenue was EUR 448 million, down 9 per cent in the first quarter compared to a 12 per cent and a14 per cent declines in the fourth and the third quarters of 2009 respectively. The improvement was led by France where the activity improved by 1 per cent. The utilisation rate remained stable at 81 per cent.

Representing 19 per cent of the Group, High Tech Transactional Services (HTTS) revenue was EUR 238 million, up 1 per cent.

In Medical BPO, the revenue was EUR 40 million, representing 3 per cent of the Group and was up 7 per cent thanks to an increase in the number of medical assessments processed in the United Kingdom.

Revenue by global business unit

In France, revenue was flat at EUR 289 million compared to the same period in 2009. Systems Integration was back to growth at 1 per cent thanks to the distinctive offerings in the Energy and Utilities sector which compensated for the decline in both the Public Sector and the Telecom markets. The Group launched the project to regroup these innovative offerings in a dedicated subsidiary Atos WorldGrid. In Managed Services and in Consulting, activity remained flat.

Revenue in the Benelux was EUR 234 million, down 12.8 per cent compared to the first quarter of 2009 and down 6 per cent compared to the last quarter of 2009. The decline was limited to 3 per cent in Managed Services. In Consulting and Systems Integration, the decline was 23 per cent compared to the first quarter of 2009 and was limited to 6 per cent when comparing to the fourth quarter of 2009.

In the United Kingdom, revenue totalled EUR 211 million down 2.4 per cent organically. In Managed Services, the revenue increased 2 per cent thanks to the growth in the Public Sector and Financial Services markets. Systems Integration was down in the Private Sector while it remained strong and growing in the Public Sector. In Consulting, revenue decreased by EUR 3 million due to lower revenue in Health while the Financial Services market started to recover. In HTTS, the revenue grew 8 per cent with the ramp-up of the contract with Capita and an increase in payment transactions. Finally, Medical BPO reported a 7 per cent growth mainly thanks to the increase of transaction volumes.

Atos Worldline revenue for the first quarter was EUR 202 million, slightly up by 0.2 per cent. The increase in the number of payment transactions combined with strong order entries means that the Group anticipates higher organic growth starting from the second half of 2010.

In Germany central Europe / EMA, revenue was EUR 122 million, down 17.5 per cent organically; of which half of the decline was due to the ramp down of the Arcandor contract. Excluding the effect of Arcandor, Managed Services remained stable but could not compensate for the decline in Systems Integration in particular in the telecom sector.

In Iberia / South America, revenue was EUR 97 million down 12 per cent. Tough economic conditions have continued to affect the Consulting and Time & Materials businesses while the price pressure observed during 2009 has started to slow down since the beginning of 2010 particularly in the private sector.

The GBU Rest of the world reported revenue of EUR 75 million, up 11.4 per cent organically. This increase was led by a strong performance in Asia both in Systems Integration and HTTS, as well as the contribution of the Olympic and Paralympic Games in Vancouver.

Human resources

The number of employees at the end of March 2010 was 48 341 compared to 49 036 at the end of December 2009.

As in 2009, the Company has maintained its Human Resources policy focussed on protecting both the employment and the capability to remain employable for its staff. The Group recruited recently graduated engineers in all Global Business Units and for all roles in emerging countries. More than 950 new recruits joined the Group in the first quarter of 2010.

The attrition rate was 8.3 per cent slightly up compared to 7.3 per cent in 2009. The Group has continued its reorganisation program with more than 600 people leaving the company during the first quarter of 2010.

The Group has pursued its efforts to maintain the number of subcontractors around 5 per cent of total staff. Total external subcontractors were 2 556 at the end of March 2010 compared to 2 491 at the end of December 2009.

In Systems Integration and in Consulting, the average number of staff on the bench in the first quarter of 2010 was 1 001 compared to 909 in the last quarter of 2009. Training for engineers on the bench has been pursued since the beginning of the year.