Atos, Profitability Improving : Ready For The Merger With Origin
Atos, a leading European information technology services provider, announced today that revenues for the 12 months to 30 September 2000 rose 12.3% to EUR 1,164 million, from EUR 1,036 million for the prior year period. Operating profit for the 12 month period was EUR 108 million, giving an operating margin of 9.3%.
At an Extraordinary General Assembly held on 29 September 2000, Atos shareholders approved an extension of the Company's fiscal year to 31 December and Atos will therefore report fully audited results for the 15 months to 31 December 2000. Following approval of the proposed merger between Atos and Origin at the Extraordinary Assembly of shareholders which is being held this morning, Origin's figures will be consolidated with effect from 1 October 2000.
The Atos results for the 12 months to 30 September 2000 were positively influenced by growth in e-business services across several divisions of the company. Revenues in the Services Division rose by nearly 25% due to a significant expansion in CRM business. The mainstream revenues of the Multimedia Division increased by 44% year on year.
By contrast, revenue growth in the Outsourcing and System Integration Divisions has remained low, with recovery from the sharp downturn experienced in late 1999 and earlier this year taking longer than the company had expected. Nevertheless, we are now seeing clear signs of an improvement in the order backlog of both divisions, which the company believes will be reflected in the results for the last quarter of 2000, and in 2001.
The Company has consolidated the results of Atos Euronext in full with effect from 1 January 2000.
Concerning the merger, Bernard Bourigeaud said: "Since the announcement of the merger with Origin on 28 August 2000, we have been working intensively to prepare for implementing the action plan on 1 November 2000. All first line and corporate managers have been identified and the organisation structure for each country was announced to staff shortly after the end of September. Work has also commenced on preparing the detailed operational budgets of the newly combined group for the financial year which commences on 1 January 2001, which will provide a detailed management framework for achieving the cost savings which we have targeted.
The sales organisations of Atos and Origin are already being co-ordinated and we are integrating and developing our respective product and service offerings to ensure that the top line synergies are achieved. Most of our customers have now been visited. The benefits of the merger have been explained to them and the responses we have received from them have been very positive.
I am confident that this merger will be a great success and will create value both for our customers as well as for our shareholders and employees."
Atos, a leading European e-services provider, is dedicated to helping companies grow and develop faster through a better use of technology. With fiscal 1999 sales of EUR 1 083 million, of which 33% was derived outside France, and a staff of 11 000 employees working in 11 European countries, Atos is focussed on providing companies strong expertise in electronic commerce, customer relationship management and supply chain management.
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