CGI Group’s Quarter Profit Up on New Contracts

Jan 26 (Reuters) – CGI Group Inc’s (TO:GIBa) first quarter
profit rose, helped by new contracts and its Stanley Inc
acquisition last year.

The company also said it plans to buy back up to 23
million, or 10 percent of its common shares, during its next
fiscal, as it extended the share buyback program to Feb. 2012.

Canada’s biggest technology outsourcing and consulting
company posted net income of C$126.6 million, or 45 Canadian
cents a share, compared with C$111.2 million, or 37 Canadian
cents a share, last year.

Excluding items, the company earned 39 Canadian cents a
share.

CGI, which provides computer services to companies ranging
from Bombardier Inc (TO:BBD) to Cirque du Soleil, said revenue
rose 23 percent to C$1.12 billion.

Analysts on average expected earnings of 34 Canadian cents
a share on revenue of C$1.12 billion, according to Thomson
Reuters I/B/E/S.

During the quarter, the company booked C$1.2 billion in new
contract wins, extensions and renewals, bringing the total
bookings over the last twelve months to C$4.2 billion.

The company’s backlog was C$13.09 billion at the end of the
quarter, from C$11.14 billion last year.

Last August, CGI completed the $940 million purchase of
U.S.-based IT services firm Stanley Inc — a deal that expanded
its work with U.S. government agencies in defense,
cyber-security and intelligence.

The Montreal-based company’s shares, which have gained
about a quarter of their value in the past year, closed at
C$18.74 on Tuesday on the Toronto Stock Exchange.
(Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj
Kalluvila)