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CGI CEO Michael Roach.
CGI CEO Michael Roach.

CGI first-quarter profit rises 43% Add to ...

Information technology company CGI Group says it earned a second-quarter profit of $117-million, up 43 per cent from $81.6-million in the same period last year, helped by strong contract bookings.

Earnings per share was up 50 per cent to 42 cents, beating analysts' estimates of 38 cents.

Revenue increased 28 per cent to $1.13-billion from $910-million, meeting analysts' estimates.

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During the quarter, CGI booked $771-million in new contract wins, extensions and renewals, bringing the total bookings over the last 12 months to $3.9-billion.

At the end of March, CGI had a backlog of signed orders of $12.6-billion, up $1.4-billion compared with the same period last year after being adjusted for the unfavourable currency impact.

"We had an excellent quarter as our team continues to execute our build and buy profitable growth strategy across all our operating segments," president and CEO Michael Roach said Thursday in a news release.

Founded in 1976, CGI Group is one of the largest independent IT and business process services firms in the world with about $4.5-billion in annual revenues.

It has some 31,000 employees in Canada, the United States, Europe and Asia Pacific.

The Montreal company recently won a $399-million (U.S.) contract to aid California in reducing its massive deficit with online tools to help the state generate additional tax revenues.

CGI plans to promote the service to other U.S. states, which are also grappling with record-breaking deficits.

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