Atos Origin confident of organic growth in 2009
Atos Origin said it was confident of achieving sales growth in 2009 due to its strong order backlog.

Revenue for the three months ended 30 September 2008 at France’s Atos Origin amounted to 1.3 billion euros representing an organic growth of 5.3%. On a year-to-date basis, revenue reached 4.1 billion euros with organic growth at 6.3%. Atos Origin kept its goal for 2008 underlying sales growth of over 5%, up from 4.5 percent in 2007, and confirmed it was a candidate for an acquisition in Italy.

Atos said it will sell 250 million to 500 million euros worth of non-strategic assets, mostly in Latin America and Asia, and focus on businesses generating high margins and recurrent cash flow.

It said it wanted its Atos Worldline unit to achieve sales of 1.5 billion euros and an operating margin of more than 15% in the next 3 years and confirmed it was on the short-list of bidders for Italian electronic payment company SIA-SSB.

Revenue by service line

With 6 per cent of total revenue at 84 million euros, Consulting continued to show an improved trend and reported an organic growth of 11.2% in the third quarter of 2008. On a year-to-date basis, the revenue organic growth was 2.1%. During the third quarter of this year, France, The Netherlands and Spain increased their revenue compared to last year while the United Kingdom had, as expected, a slight decrease. The action plan implemented in the United Kingdom is underway including short term sales initiatives made proactively with Systems Integration.

With 39 per cent of total revenue, Systems Integration reached 521 million euros and recorded a 5.2% organic growth during the quarter. This performance was led by the United Kingdom (10%) and Germany and Central Europe (21%). France reached 3% this quarter and The Netherlands -2%. On year-to-date basis, Systems Integration organic revenue growth was 6.8%.

With 55 per cent of total revenue at 725 million euros, Managed operations achieved a 4.7% organic growth. This activity continued to benefit from Atos Worldline at double digit growth, France Managed Services, United Kingdom and Asia Pacific all with a strong growth while The Netherlands and Germany Central Europe slightly decreased, the company said. On a year-to-date basis, Managed Operations organic revenue growth was 6.5%.

Revenue by geographical area

Q3 2008 organic revenue growth was led by the United Kingdom at 8%, France and Germany both above 6% and Asia Pacific at 29%.

On a year-to-date basis, organic revenue growth was 6.3%. The United Kingdom, Atos Wordline, Spain, Belgium and Asia Pacific generated a double-digit growth. All geographies are growing except The Netherlands, which decreased slightly at -1% and the Americas affected by the revenue made on the Panamerican Games in Brazil in 2007.

Growing backlog for 2009 revenue

For the first nine months of 2008, the order entries increased by 10% compared to the same period in 2007 at same exchange rates. The book to bill ratio was 95% year-to-date compared to 90% year-to-date September 2007. In Q3 2008, order entries remained flat compared to Q3 2007 which included the three-year contract signed with Dresdner Bank in Application Management, which represented 13% of total order entries made in the quarter.

The full backlog at the end of September 2008 reached 7.5 billion euros representing 1.4 year of revenue and the full qualified pipeline remained strong at 2.6 billion euros.

The backlog for 2009 revenue reached 2.5 billion euros, up by 8% compared to the backlog for 2008 revenue reached at the end of September 2007.