Atos Expects Lower 1st Half Earnings, Mainly Due to Greater than Anticipated Investments in E-business
Atos today reported that it expects first half earnings (September 30, 1999 - March 31, 2000) to be lower than projected. The Group’s first quarter was impacted by the year 2000 slowdown, particularly in the financial services sector, as major financial institutions locked down their information systems in preparation for a smooth transition to year 2000. Earnings are also expected to be affected by the implementation of the mandatory law to reduce the working hours in France and the increase in e-business investments across business lines linked to the launch of a number of e-business projects and offerings.
Taking into account the aforementioned items, the operating margin for fiscal 2000 should be in the range of 8.5%-9.5%. The Group believes that the second-half operating margin will improve and meet the objectives set forth last December, thanks to increase growth in e-business activities.
Bernard Bourigeaud, Atos Chairman and Chief Executive Officer, stated, “We remain confident in achieving a good second-half fiscal 2000 performance. Our revenue target for fiscal 2000 remains unchanged at 13-15 %. The investments in the rapidly changing e-business environment will allow Atos to reinforce its strong positioning in the new economy and to accelerate its growth beyond year 2000.”
Lisa Barthelemy - Investor Relations -
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