Atos Origin Ahead Of Merger Expectations
Atos Origin, a leading European information technology services provider, today announced its first unaudited pro forma results for the newly-combined company, for the calendar year ended 31 December 2000.
Revenues for the full year January to December 2000 were EUR 2,830 million compared with EUR 2,727 million in the previous year. These are closely in line with indications given to shareholders on 31 October 2000, when the merger between Atos and Origin was approved, creating Atos Origin. The figures are presented on a constant scope basis, excluding in full 1999 and 2000 revenues from companies which have been sold.
Revenues in Q4 2000 amounted to EUR 746 million, compared with EUR 689 million in the last quarter of 1999, an improvement of 8.3 per cent. Origin's sales improved by nearly 10% compared with Q3 2000, giving strong support to the company's view that Origin is once again on a steady growth path.
Operating profits for the full year 2000 reached EUR 175 million, representing a margin of 6.2 per cent.
The merger of Atos and Origin came into effect immediately after shareholder approval on 31 October 2000. The sales and marketing functions for both organisations have since been combined and a global account team established to focus on the company's top 27 clients, which account for nearly 50% of the company's revenues. Following a detailed review of the business immediately after the merger, action has been taken to reduce general and administrative costs, eliminate the trading losses that were being experienced in several parts of the business and enhance operational effectiveness.
The costs of this restructuring and rationalisation will amount to approximately EUR 270 million and these charges will be recorded as an adjustment to the net equity of Origin in the opening balance sheet of Atos Origin. A further EUR 30 million of integration costs will be taken through the profit and loss account as an exceptional item in the statutory accounts for 2000.
The group has also indicated that it intends to dispose of a number of low margin or loss-making businesses which generate revenues of up to EUR 200 million. The sale of our operations in the Nordic region to WM-Data last December was an initial step and may be followed by further such announcements during 2001.
Atos Origin will announce audited Year 2000 results on 21 March 2001, together with a full analysis for investors and the press. The statutory results will include Atos trading figures for the 15 months ended 31 December 2000 together with results from Origin for the three months from 1 October to 31 December. In order to facilitate analysis, the company will also publish full pro forma details on the performance of the combined group for the calendar year 2000.
On Atos Origin, Bernard Bourigeaud, CEO, said: "Our merger is being executed in record time and we are confident that in 2001 we will be able to deliver revenue growth of 10-12 per cent and increase our operating margin to at least 8 per cent."
About Atos Origin
Atos Origin, the leading European information technology services provider, helps clients turn their vision into results through the effective use of e-business solutions and IT. With sales of more than EUR 2.8 billion in 2000, Atos Origin currently operates in more than 30 countries worldwide and has 27,000 employees. Its customers include ABN-Amro, Akzo-Nobel, BNP Paribas, Cegetel/Vivendi, Credit Lyonnais, Euronext, Fiat, ICI, Lucent Technologies, Philip Morris, Philips, Shell and Unilever.
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