July 29 (Reuters) - Information systems and management
consultants CGI Group Inc GIBa.TO posted a 14 percent rise in
third-quarter profit on lower revenue on Wednesday, and said it
would invest in cyber security and in upgrades to make its
business more productive.
The Montreal-based company - which won unwelcome attention
for its role in the botched 2013 launch of healthcare.gov, the
system underpinning U.S. President Barack Obama's landmark
health reform - said it signed C$2.2 billion of contract awards
in the period, down from the C$2.5 billion a year ago.
The company said net income rose to C$257.2 million, or 80
Canadian cents per share, in the three months to June 30, from
C$225.1 million, or 71 cents a share, a year earlier. Revenue
slipped 4 percent to C$2.56 billion.
Analysts had on average expected CGI to earn 81 Canadian
cents a share on revenue of C$2.65 billion, according to Thomson
Reuters I/B/E/S.
Its backlog of signed orders, an indicator of future sales,
rose to C$19.7 billion, from C$18.8 billion a year earlier.
It will take a C$60 million pre-tax charge over the next six
months for investments in cyber security, digitization of client
processes and other upgrades.
"The time to restructure a business is when you are
financially strong," CGI`s Chief Executive Michael Roach said in
the earnings statement.
($1 = 0.6423 pounds)