. First quarter 2010 revenue: EUR 1,231 million
. Order entries up: +17 per cent
. Book to bill ratio: 128 per cent
. Further reduction of net debt: down to EUR 130 million
PARIS – 14 April 2010 – Today, Atos Origin, an international IT services company, reported revenue of EUR 1,231 million for the first quarter of 2010 representing a decline of -5.5 per cent at same scope and exchange rates. This figure is 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%.
In € Million Q1 2010 Q1 2009 %
Revenue 1 231 1 294 -4.9%
Change in scope -
Exchange rates impact 8
Revenue at constant scope and exchange rates 1 231 1 302 -5.5%
Commercial activity
Total order entries for the first quarter of 2010 were EUR 1 577 million 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.
By service line, the book to bill ratio was:
· 139 per cent in Consulting (84 per cent in Q1 2009);
· 130 per cent in Systems Integration (107 per cent in Q1 2009);
· 129 per cent in Managed Services (112 per cent in Q1 2009);
· 135 per cent in Hi-Tech Transactional Services (HTTS) (100 per cent in Q1 2009).
During the first quarter of 2010, the Group renewed key contracts in Managed Services with Standard Chartered Bank in Hong Kong, the Government in the United Kingdom and KPN in The Netherlands. In HTTS and payment systems contracts were renewed with Dexia, KBC and ING in Belgium and in Systems Integration with Renault in France and BP in Germany.
Several new contracts were signed during quarter one, including the Health Personal File for HTTS in France and VOSA in the United Kingdom for Managed Services. For Systems Integration two major contracts were agreed with KPN in The Netherlands as well as with BBVA in Spain, Commerzbank in Germany and the Government and EDF Group in France. For Consulting, a contract was signed with the Department for International Development in the United Kingdom.
On 31 March 2010, the full backlog was EUR 7.2 billion, representing 1.4 year of revenue, compared to EUR 6.9 billion at 31 December 2009.
The full pipeline weighted in accordance with industry practice was EUR 2.8 billion at the end of March 2010 at the same level as 31 March 2009.
Net debt
Group net debt on 31 March 2010 was reduced further to EUR 130 million - including the acquisition of the company Shere in the United Kingdom - compared to EUR 139 million at 31 December 2009.
The net operating cash flow amounted to EUR 29 million during the first quarter of 2010 compared to EUR 8 million for the same period last year. The Group has pursued its actions to monitor tightly capital expenditure and to improve working capital.
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.
2010 Objectives
After three months of activity, the Group confirms its objectives for 2010 as communicated to the market during the 2009 Annual Results presentation on 17 February 2010. Priorities of the Group in 2010 will be again to maintain and further improve the skills of its staff, to improve operating margin and
cash generation as per its three-year plan.
Operating margin
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.
Cash Flow
The Group has the objective to confirm the improvement achieved in 2009 by generating a net operational cash flow in the same range in 2010.
Revenue
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.
A webcast in English will be held today 14 April at 9:30 am, CET time,
accessible on www.atosorigin.com
Forthcoming events
27 May 2010
28 July 2010
14 October 2010
Annual General Meeting
First Half 2010 results
Third quarter 2010 revenue
Disclaimers |
