I'm seeing this as a buying opportunity. (see below)
I don't currently own GIBa.
Any thoughs about the post-y2k excuse ?
If any company decides to outsource their IT
departments, GIBa should be one the most likely
to get contracts with them.
I think outsourcing IT is a trend, and coupled with this
buying opportunity, I might buy this week.
==
Thursday June 22, 4:31 pm Eastern Time
Company Press Release
CGI Issues Advisory for Third Quarter and Fiscal
2000 Revenue and Earnings
Please note: A 5:00 pm conference call with
analysts will be broadcast live on CGI's Web site at
www.cgi.ca
MONTREAL--(BUSINESS WIRE)--June 22, 2000-- CGI (NYSE:GIB - news; TSE:GIBa. -
news) announced today that based on current information, third quarter revenue and earnings per
share will be below analysts' consensus estimates. Revenue for the third quarter is expected to come in
between $315 and $325 million, lower than market expectations. Earnings per share are expected to
be between $0.02 and $0.04. CGI's third quarter results will be issued on Wednesday, July 26, 2000.
For the current fiscal year, CGI expects to report revenue slightly higher than in fiscal 1999, which
totalled $1.4 billion, while earnings per share should be between $0.21 and $0.24, compared with
analysts consensus for the year of $0.35. These results are related primarily to a post-Y2K slowdown
in the decision-making process related to new investments in IT and the awarding of large
outsourcing contracts.
CGI's Chairman and CEO, Serge Godin, said: ``We believe that the second half of fiscal 2000 is
transitional and that the current softness in the market has bottomed out. CGI maintains a solid
pipeline of bids and proposals currently being reviewed by potential clients and we remain optimistic
about the outlook.''
``Over the coming months, we will continue actively to pursue a number of business opportunities
that we have identified,'' said Mr. Godin. ``We continue to invest in our growth, through such
initiatives as our strategic investment program for e-business. While taking certain steps to manage
efficiently, we have elected to retain our professionals because we strongly believe that demand will
strengthen and that the market will have a need for the expertise of our people as we move forward.''
CGI is the largest Canadian information technology consulting firm and the fifth largest independent
in North America, based on its revenue run rate of CDN$1.5 billion. CGI's order backlog totals
approximately CDN$7.2 billion. CGI has 10,000 professionals and provides end-to-end IT services
and business solutions to 2,500 clients in Canada, the United States and more than 23 countries
around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the
Toronto exchange (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite
and TSE 100 indexes. Web site: www.cgi.ca.
All statements contained in this or any other press release of CGI Group Inc., or in any document
filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or
oral communication by or on behalf of the Company, that do not directly and exclusively relate to
historical facts, constitute ``forward looking statements'' within the meaning of the U.S. Private
Securities Litigation Report Act of 1995. These statements represent the Company's expectations
and beliefs, and no assurance can be given that the results described in such statements will be
achieved.
This press release may contain forward looking statements that involve a number of risks and
uncertainties, including statements regarding the outlook for the company's business and results of
operations. There are a number of factors that could cause actual results to differ materially from
those indicated. Such factors include, without limitation, the various factors set forth in the
Company's annual report or Form 40F filed with the SEC and its Annual Information Form filed
with Canadian securities commissions, which important factors are included here by reference. |
