Canadian IT services company CGI Group Inc. (GIB: Quote, GIB_A.TO) on Wednesday reported a loss for the fourth quarter, as charges related to the acquisition and integration of Logica plc more than offset higher revenues.
In late August, CGI said it completed the cquisition of UK-based peer Logica for 105 pence per ordinary share, for a total purchase price of 1.7 billion pounds, or C$2.7 billion.
Michael Roach, President and CEO of CGI Group said, “I am pleased with our overall performance as we continue to focus on helping clients meet their business objectives. We are well positioned operationally and financially to continue to execute our profitable growth strategy in F2013 and beyond.”
Montreal-based CGI’s fourth-quarter net loss was C$167.97 million or C$0.58 per share, compared to net earnings of C$69.54 million or C$0.26 per share in the year-ago period.
The latest quarter’s results include acquisition-related and integration charges totaling C$248.32 million.
Excluding specific items, net earnings for the quarter were C$99.96 million or C$0.37 per share, compared to net earnings of C$104.96 million or C$0.39 per share in the prior-year period.
On average, eleven analysts polled by Thomson Reuters expected the company to earn C$0.41 per share for the quarter. Analysts’ estimates typically exclude special items.
Revenue for the quarter grew 60 percent to C$1.61 billion from C$1.01 billion in the same period last year and includes the consolidation of Logica. Analysts had a consensus revenue estimate of C$1.64 billion.
Bookings at the end of the quarter rose to C$1.52 billion from C$1.47 billion in the prior-year period. Backlog at quarter-end were C$17.65 billion, up from C$13.40 billion in the same period last year.
For fiscal year 2012, CGI’s net earnings fell to C$131.53 million or C$0.48 per share from C$438.14 million or C$1.59 per share last year.
Adjusted net earnings for the year were C$401.33 million or C$1.50 per share, compared to C$396.72 million or C$1.44 per share in the prior year.
Revenue rose 13 percent to C$4.77 billion from C$4.22 billion in the previous year.
Analysts expected the company to report earnings of C$1.58 per share for the year on revenues of C$4.81 billion.
Roach said, “The integration of Logica into the CGI operational model is well underway and being implemented as planned. We continue to expect the combination to generate an accretion rate of 25% to 30% in fiscal 2013, excluding acquisition related and integration costs.”
GIB closed Tuesday’s trading on the NYSE at $24.22, up $0.40 on a volume of 156,500 shares.
On the Toronto stock exchange, GIB_A.TO closed Tuesday’s trading at C$24.05, up C$0.40 on a volume of 804,200 shares.
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by RTT Staff Writer
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