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Be the first with the news that moves the market- IT and business consulting firm, CGI (TSX:GIB.A), has reported steady results for the second quarter of fiscal 2020
- Revenue was up two per cent to C$3.13 billion, despite the impact of COVID-19
- However, net earnings for the period were down by $3.4 million to $314.8 million
- To manage the impact of COVID-19, roughly 90 per cent of the company’s workforce moved to a remote working schedule
- CGI (GIB.A) is up 3.28 per cent to $88.27 per share, with a market cap of $21.2 billion
IT and business consulting firm, CGI (TSX:GIB.A), has reported steady results for the second quarter of fiscal 2020.
The Montreal-based company employs 78,000 consultants globally, providing a range of services. The services include strategic IT and systems integration, to intellectual property solutions.
Total quarterly revenue came to C$3.13 billion, two per cent more than $3.07 billion in 2019’s same quarter. On a constant currency basis, this growth would have represented three per cent. However, foreign exchange fluctuations negatively impacted revenue by $27.7 million.
Despite the impact of COVID-19, CGI was able to produce steady results. This was largely due to roughly 90 per cent of the company’s workforce transitioning to a remote working schedule.
However, CGI’s net earning for the quarter dropped to $314.8 million, $3.4 million less than the same period last year. The company said that this came from a one-time restructuring and integration cost of $23.5 million.
CGI’s CEO, George Schindler, said the company’s diverse mix of critical services, vertical markets, and multiple geographies played a key role in mitigating the pandemic’s impact on client demand.
“The pandemic has created unprecedented business conditions. I am proud of our members’ ongoing commitment to ensuring service continuity for clients in a safe and flexible manner.
“Our second quarter performance is a reflection of our resilient business model and our operational excellence,” he added.
As of the end of March this year, CGI had roughly $22.99 billion in its backlog of work services.
CGI (GIB.A) is up 3.28 per cent to $88.27 per share at 12:23pm EST.
