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TheStreet Open House

CGI Group's CEO Discusses Q3 2011 Results - Earnings Call Transcript

Please note that some statements made on the call may be forward looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete Safe Harbor statement is available on both our MD&A and press release, as well as on cgi.com. We encourage our investors to read it in its entirety. We report our results in accordance with Canadian GAAP, but we do discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each of these non-GAAP performance indicators used in our reporting.

All of the figures expressed on this call are in Canadian dollars unless otherwise noted. I'll turn the call over to David first to review the financial results for the third quarter. And then, he'll pass it over to Mike, who will discuss a few strategic highlights. David?

R. Anderson

Thank you, Lorne, and good morning. I'm pleased to share the financial details of another good quarter. In the third quarter, revenue was $1.04 billion, an increase of 15.1%, while $136.3 million compared with the same period last year. Revenue, on a constant currency basis, was up 18.0% after adjusting for foreign exchange fluctuations that unfavorably impacted revenue in the quarter by $26.3 million or 2.9% compared with the same period last year. Currency shaped $87 million from our topline during the first 9 months of fiscal 2011. And given the weakness of the U.S. dollar, we expect our top line to continue being challenged by FX.

As a reminder, we have been successfully hedging our bottom-line exposure for a number of years through national hedges and financial instruments.

Adjusted EBIT in Q3 was $144.3 million, up 12.2% compared with last year, and our EBIT margin remained strong at 13.9%.

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