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Aug 06, 2015, by Rachael Stormonth
CGI's Q3 FY 15 results included:
Revenues of CDN$2.56bn, down 3.5% y/y in CC and flat sequentially
Adjusted EBIT margin of 14.5%, up 167 bps y/y
Full results are available here.
The y/y CC revenue decline (the same as in Q2) is attributed to the wind down of U.S. government healthcare projects, continued delays in U.S. federal procurement, and the slowdown in U.K. government sp[...]
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Jul 28, 2015, by Rachael Stormonth
"We are making progress in some areas, but we know we can and should do better in other areas. Our direction is unchanged; we are making several shifts in the way that we execute against it” Ursula Burns.
On Friday, Xerox announced results for Q2 2015 (for full details, see here):
Xerox Services revenues were $2,569m, down 3.1% y/y (on continuing operations), up 1% in CC
Segm[...]
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Jul 27, 2015, by Rachael Stormonth
Infosys Q1 FY 16 results:
Revenues were $2,256m, up 5.8% year-over-year (y/y) as reported, up 10.9% in constant currency and up 4.5% sequentially
Operating income (EBIT) was $541m, a margin of 24.0%, a y/y decrease of 115 bps, and a sequential decrease of 173 bps.
See here for the full results
"I’m very pleased with our overall performance for the quarter” sai[...]
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Jul 26, 2015, by Rachael Stormonth
Key features of Wipro Q1 FY16 results: [...]
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Jul 13, 2015, by Rachael Stormonth
On July 3, Infosys announced it has been awarded a multi-year application development and management (ADM) services contract by Allied Irish Banks (AIB). As a strategic partner to AIB, Infosys will:
Provide application development and management, and transformation and innovation services
Set up a 200-seat facility in Dublin to house staff who will be transferring from [...]
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Jun 24, 2015, by Rachael Stormonth
HP Separation Steaming Ahead
(see our initial comments on the news of the HP break up here:)
At the HP Discover event in Las Vegas earlier this month, the last before the break up of goliath HP into two organizations - HP Enterprise (HPE) and HP Inc. (HPI) - CEO Meg Whitman (the future CEO of HPE) took pains to highlight the progress that has been made in preparing for and organizing the sep[...]
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Jun 22, 2015, by Rachael Stormonth
NelsonHall recently attended an EXL advisor and client event in London.
What a difference in 18 months!
Back in November 2013, EXL received a notice of termination from its largest client at the time (an event that was unfortunate, but not due to under-performance). The impact of this on 2014 results was significant: a $38m reduction in revenues from this client[...]
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Jun 22, 2015, by Rachael Stormonth
Summary:
While 2014 was a “transformational year” for Atos MS and Worldline businesses, Atos’ C&SI business has also been reinventing itself. 2014 saw good progress against nearly all of the unit’s three year financial targets
Atos C&SI has been making substantial investments to strengthen its capabilities to support clients in their digital transformation a[...]
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May 22, 2015, by Rachael Stormonth
HP Enterprise Services has announced Q2 FY 2015 results, for the period ending April 30, 2015:
Revenue was $4,817m, down 15.5% y/y, and down 10% in constant currency (CC), reflecting key account run off and weakness in EMEA
Segment earnings before taxes (EBT) were $194m, a margin of 4.0%, up 143 bps y/y.
Q2 FY 2015 revenue by service line (with y/y revenue growth) was:
[...]
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Feb 27, 2015, by Rachael Stormonth
HP recently announced a major (multi-billon) 10-year IT infrastructure management services contract with Deutsche Bank’s wholesale banking division (which accounts for around 50% of the DB Group revenues).
HP Enterprise Services (HP ES) will deploy HP Helion, providing data center services on-demand including storage, platform and hosting – activities formerly essentially done in-ho[...]
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Feb 23, 2015, by Rachael Stormonth
Capgemini’s CEO Paul Hermelin describes himself as “very encouraged” by 2014 results; the group has exceeded guidance for:
Topline growth: guided on 2-4% organic, delivered 3.4%, accelerating to 5.5% in Q4
Net margin, guided on 0.3 to 0.5 pts improvement, delivered 0.7 pts to 9.2%. Capgemini should read 10% margin by early 2016
Organic FCF: guided at above €55[...]
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Feb 17, 2015, by Rachael Stormonth
Infosys is to acquire Panaya, a vendor of automation technology for enterprise software management, for $200m in cash. Panaya is a privately held company backed by hi-tech VC firms including Benchmark Capital, HPV and Battery. The transaction is expected to close before March 31.
Founded in 2005, and formerly known as ChangeSoft Technologies, Panaya is based in Ra’anana, Israel and h[...]
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Feb 09, 2015, by Rachael Stormonth
A strong end to 2014 for Cognizant, with the disruption of Q2 results (due to client specific issues) now a fading memory.
Q4 2014 revenues were up 16.4% y/y, up 13% y/y excluding Trizetto. And non-GAAP operating margin of 19.4% was within its targeted range.
Q4 2014 revenue breakdown by vertical (and actual revenue growth) was:
Financial services: $1,121m (+12.4%), with strong gr[...]
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Feb 09, 2015, by Rachael Stormonth
Accenture Federal Services (AFS) is to acquire Agilex Technologies, a privately-held provider of digital solutions for the U.S. federal government based in Chantilly, VA. Terms of the transaction were not disclosed.
The acquisition will enhance Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies. It also will add agile delivery expertise. Agilex br[...]
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Feb 04, 2015, by Rachael Stormonth
Overall IBM Group revenues in 2014 declined 6% (-1% in CC and excluding divestitures).
However, IBM is in the midst of a major adjustment of its portfolio. In line with this, the company is reporting $25bn in revenues (and 16% revenue growth) in 2014 (out of a total of $92.8bn) from its "strategic imperatives". IBM's acquisition of Softlayer, where it continues to invest strongly,[...]
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Feb 03, 2015, by Rachael Stormonth
CGI CEO Michael Roach describes Q1 FY 2015 results as “strong”– and yet revenue was down in every region apart from the U.K. (putting aside the 0.9% CC growth in APAC to CDN$108.7m). The 169% book-to-bill ratio achieved this quarter looks a lot less impressive when the CDN$2bn renewal with Bell Canada is excluded, when the global book-to-bill goes down to 90%[...]
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Feb 02, 2015, by Rachael Stormonth
“A lot has happened in the last 90 days and overall we're pleased with where we ended the year. We're reporting solid results that in some places exceeded expectations” Ursula Burns.
Q4 summary:
Services revenue was $2,725m, up 1.5% y/ y, and up 3% in constant currency:
BPO CC growth was 4% (up from 2% in Q3) with growth in commercial healthcare payer, electronic[...]
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Feb 02, 2015, by Rachael Stormonth
TCS Globally: High Market Cap, High Brand Value
With over $15bn in revenues in CY 2014 (and FY 2015 revenues likely to be in the region of $15.5bn) TCS is not only one of the largest, fastest growing and most profitable service providers but is now also a top 5 IT services player (*) on the global stage. And TCS is also the most profitable of the Top 5, with an EBIT margin currently tracking at[...]
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Dec 19, 2014, by Rachael Stormonth
Accenture Q1 FY 2015 results are out today: 7.3% reported net revenue growth to $7,896m, operating margin at 15.0%. Full details are here.
Accenture CEO Pierre Nanterme opened the analyst call referring to an “excellent” first quarter and saying “I am extremely pleased with our results”.
And here’s why:
The 10% topline growth in local currency is the best [...]
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Dec 19, 2014, by Rachael Stormonth
In the early hours of this morning, Atos announced it is acquiring the IT outsourcing business of Xerox. Full details of the acquisition are here.
Atos is ending 2014 with a bang. Having completed the integration of Siemens IT Solutions & Services pretty darned quickly (certainly far faster and more effectively than naysayers would have predicted), it has proceeded this year to the car[...]