* Adjusted profit C$0.67/share vs analysts' view C$0.62
* Revenue rises 53 pct to C$2.5 bln
By Alastair Sharp
TORONTO, Nov 14 CGI Group Inc, the
main contractor for the flawed website of President Barack
Obama's healthcare program, said its pipeline of orders was
strong despite the negative publicity from the project.
Shares in the Canadian software company jumped 7 percent
after CGI posted a better-than-expected adjusted quarterly
profit on Thursday.
CGI is at the center of a political storm in Washington over
the rollout of the HealthCare.gov website, through which
uninsured Americans can sign up for health insurance.
Because of technical glitches since the launch of
HealthCare.gov on Oct. 1, just a tiny fraction of the hoped-for
millions have signed up for insurance on the website, the Obama
administration said on Wednesday.
CGI said bookings in its U.S. government business were
strong, despite the website issues and the 17-day partial
government shutdown in October.
In congressional testimony, contractors have described
HealthCare.gov as one of the most complicated large-scale
information technology systems ever, a line repeated by CGI
Chief Executive Michael Roach on a call with analysts on
"This is not a simple website but rather a very complex
integrated technology platform that for the first time combines
the process of selecting, enrolling in insurance, and
determining insurance eligibility for government subsidies, all
in one place and in real time," Roach said.
He said many customers had said they understood the
difficulty of the task, and the company's pipeline of new
business continues to expand.
CGI said in October that months of testing of the
HealthCare.gov website would have been preferable, but the
testing schedule was determined by a federal agency.
U.S. Health Secretary Kathleen Sebelius said last month that
the private contractors for the website had not requested a
delay in the launch.
Excluding one-time items, CGI's profit was 67 Canadian cents
per share for the fiscal fourth quarter, ended Sept. 30, topping
analysts' average estimate by 5 Canadian cents, according to
Thomson Reuters I/B/E/S.
CGI said results were helped by its acquisition of
Anglo-Dutch rival Logica Plc and strong growth in its U.S.
business, mainly due to contracts in the government and health
Net income was C$141 million ($135 million), or 44 Canadian
cents per share, compared with a loss of C$168 million, or 58
Canadian cents per share, a year earlier.
CGI's loss in the year-earlier quarter was due to costs
associated with the acquisition of Logica Plc. CGI completed the
acquisition in August 2012, becoming the world's fifth-largest
independent IT services firm.
Montreal-based CGI's revenue rose 53 percent to C$2.5
The company's shares rose 7 percent to C$40.30 in morning
trade on the Toronto Stock Exchange. Through Wednesday, the
stock had risen 64 percent this year, including a 4 percent rise
since Oct. 1.