CGI Reports Revenue of $904 Million in Q1 Fiscal 2007



    
    Stock Market Symbols
    GIB.A (TSX)
    GIB (NYSE)

    Q1 2007 Highlights

    - Revenue up 7% and net earnings up 10.5% sequentially;
    - Earnings per share, before impact of restructuring costs: 18 cents,
      up 12% sequentially and 34% compared with Q1 of 2006;
    - Earnings per share of 13 cents, up 13% sequentially and flat
      year-over-year;
    - Cash provided by operations of $166.4 million, up $112.0 million
      sequentially and $102.8 million year-over-year.

    Note: The following press release, as well as our Q1 2007 MD&A, financial
    statements and accompanying notes may be found at www.cgi.com and have
    been filed with both SEDAR in Canada and EDGAR in the U.S.

    MONTREAL, Jan. 30 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE:   GIB)
reported fiscal 2007 first quarter revenue of $904.0 million. This is 1%
higher than the first quarter of fiscal 2006 and 7% higher than the previous
quarter.
    In the first quarter of fiscal 2007, net earnings margin before the final
charges related to the previously announced restructuring program was 6.5%
representing $58.4 million. This compares to net earnings margin of 6.3% or
net earnings of $56.9 million in Q1 of fiscal 2006. Sequentially, and before
restructuring costs, this compares to a net earnings margin of 6.3% or net
earnings of $53.1 million in Q4 of fiscal 2006.
    On an earnings per share basis, before restructuring costs, the Company
earned 18 cents compared with 13 cents in Q1 of fiscal 2006 and 16 cents in Q4
of 2006.
    During the quarter, the Company completed its previously announced
restructuring program, booking $23.0 million in pre-tax charges, bringing the
total cost of the program to $90.3 million, in line with the original
estimate.
    Net earnings, including the $14.7 million in after tax restructuring
costs, were $43.7 million in the first quarter of 2007. This compares with net
earnings of $56.9 million for the same period last year and $39.5 million in
the fourth quarter of 2006.
    On an earnings per share basis, the Company earned 13 cents in Q1 2007
compared with 13 cents in Q1 2006 and 12 cents in Q4 2006.
    During the first quarter, the Company generated cash from operations of
$166.4 million, compared with $63.6 million in the first quarter of 2006 and
$54.4 million in Q4 2006.
    The Company repurchased 1.9 million shares for cancellation during the
first quarter of fiscal 2007, reducing the number of outstanding shares to
329.0 million by the end of December 2006. This is a reduction of 24% from the
same period last year.
    In addition, the Company repaid $92.2 million in debt during the quarter,
bringing long-term debt to $720.5 million at the end of Q1. Including cash and
cash equivalents on hand of $146.6 million at the end of the quarter, the
Company's net debt was $582 million representing a net debt to capitalization
ratio of 22.6% down from 27.2% at the end of September 2006.
    "CGI continues to have the financial capability to fully execute its build
and buy strategy, to buy back shares and reduce debt in order to maximize
shareholder value," commented President and Chief Executive Officer, Michael
E. Roach.

    -------------------------------------------------------------------------
    In $ millions except margin
     and share data amounts
                                           Q1-2007      Q4-2006      Q1-2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue                                 $904.0       $845.8       $898.5
    -------------------------------------------------------------------------
    Net earnings  before restructuring
     costs                                   $58.4        $53.1        $56.9
    Margin                                     6.5%         6.3%         6.3%
    -------------------------------------------------------------------------
    Basic and diluted earnings per
     share before restructuring costs
     related to specific items               $0.18        $0.16        $0.13
    -------------------------------------------------------------------------
    Restructuring costs related to
     specific items                          $23.0        $20.9            -
    -------------------------------------------------------------------------
    Net earnings                             $43.7        $39.5        $56.9
    Margin                                     4.8%         4.7%         6.3%
    -------------------------------------------------------------------------
    Basic and diluted earnings per
     share                                   $0.13        $0.12        $0.13
    -------------------------------------------------------------------------
    Weighted average number of
     outstanding shares                330,451,267  336,941,173  430,487,345
    -------------------------------------------------------------------------
    Number of shares outstanding at
     end of period                     329,030,218  330,787,944  430,615,388
    -------------------------------------------------------------------------
    Total long-term debt                    $720.5       $805.6       $237.4
    -------------------------------------------------------------------------
    Interest on long-term debt               $12.5        $13.4         $4.6
    -------------------------------------------------------------------------
    Net debt to capitalization                22.6%        27.2%           0%
    -------------------------------------------------------------------------
    Days of sales outstanding (DSO)             44           52           50
    -------------------------------------------------------------------------
    Order backlog                          $12,555      $12,722      $12,901

    Note: All dollar figures are in Canadian dollars, unless otherwise
    specified.
    

    "With the restructuring program now complete, I am pleased to report
growth in both revenue and net income," added Roach. "As a result of our focus
on business development, specifically our full offering strategy, we have been
able to generate new revenue, bringing us back over $900 million and
delivering net margins among the best in our peer group. In addition, I am
pleased with the continuing ability of the operations to generate strong cash
flow which enabled us to invest over $100 million in debt reduction and in
buying back our own stock in the quarter. The fundamentals of CGI are strong
and we remain confident in our ability to profitably grow our business and, in
the process, create additional value for our shareholders."

    Bookings

    During the quarter, the Company booked $769 million in new contract wins,
an improvement of $307 million or 66.5% from Q4 of 2006, bringing the total
value of its backlog to $12.6 billion.

    Normal Course Issuer Bid

    This morning, the Company's Board of Directors authorized the renewal of
a Normal Course Issuer Bid and the purchase of up to 10% of the public float
of the Company's Class A subordinate shares during the next year. The Company
has received approval from the Toronto Stock Exchange for its intention to
make an Issuer Bid.
    The Issuer Bid enables CGI to purchase on the open market through the
facilities of the Toronto Stock Exchange up to 29,091,304 Class A subordinate
voting shares for cancellation. At the close of business on January 26, 2007,
there were 295,034,164 Class A subordinate voting shares of the Company
outstanding of which approximately 98.6% were widely held. The Class A
subordinate voting shares may be purchased under the Issuer Bid commencing
February 3, 2007 and ending no later than February 2, 2008, or on such earlier
date when the Company completes its purchases or elects to terminate the bid.

    Quarterly Conference Call

    CGI's Executive Team will host a conference call to discuss results at
9:30 am Eastern time this morning. Participants may access the call by dialing
(866) 542-4236 or on the web at www.cgi.com. Supporting slides for the call
will also be available. For those unable to participate on the live call, a
webcast and copy of the slides will be archived at www.cgi.com.

    Annual General Meeting of Shareholders

    This morning at 11:00 am, the Company will hold its Annual General
Meeting of shareholders at the Omni Mont-Royal Hotel, Salon Les Saisons,
1050 Sherbrooke Street West, Montreal. The meeting, presided over by Serge
Godin, Founder and Executive Chairman will be broadcast live via www.cgi.com.
Michael E. Roach, President and Chief Executive Officer will also address the
meeting and a question and answer session will follow.

    Note to the media: A press conference will be held immediately following
the Annual General Meeting, at approximately 12:15 pm.

    Use of Non-GAAP Financial Information

    CGI reports its financial results in accordance with GAAP. However,
management believes that certain non-GAAP measures provide useful information
to investors regarding the Company's financial condition and results of
operations as they provide additional measures of its performance.
Explanations as well as a reconciliation of these non-GAAP measures with GAAP
financial statements are provided in the MD&A which is posted on CGI's
website, and filed with SEDAR and EDGAR.

    About CGI

    Founded in 1976, CGI Group Inc. is one of the largest independent
information technology and business process services firms in the world. CGI
and its affiliated companies employ approximately 25,000 professionals. CGI
provides end-to-end IT and business process services to clients worldwide from
offices in Canada, the United States, Europe, Asia Pacific as well as from
centers of excellence in North America, Europe and India. CGI's annualized
revenue run rate stands at $3.6 billion (US$3.1 billion) and at December 31st,
2006, CGI's order backlog was $12.6 billion (US$10.9 billion). CGI shares are
listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX
Composite Index as well as the S&P/TSX Capped Information Technology and
MidCap Indices. Website: www.cgi.com.

    Forward-Looking Statements

    All statements in this press release that do not directly and exclusively
relate to historical facts constitute "forward-looking statements" within the
meaning of that term in Section 27A of the United States Securities Act of
1933, as amended, and Section 21E of the United States Securities Exchange Act
of 1934, as amended, and are "forward-looking information" within the meaning
of the Ontario Securities Act, as amended. These statements and this
information represent CGI Group Inc.'s ("CGI") intentions, plans, expectations
and beliefs, and are subject to risks, uncertainties and other factors, of
which many are beyond the control of the Company. These factors could cause
actual results to differ materially from such forward-looking statements or
forward-looking information.
    These factors include and are not restricted to the timing and size of
new contracts, acquisitions and other corporate developments; the ability to
attract and retain qualified members; market competition in the
rapidly-evolving information technology industry; general economic and
business conditions, foreign exchange and other risks identified in the
Management's Discussion and Analysis ("MD&A") in CGI's Annual Report or Form
40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at
www.sec.gov), and in CGI's annual and quarterly MD&A and Annual Information
Form filed with the Canadian securities authorities (filed on SEDAR at
www.sedar.com), as well as assumptions regarding the foregoing. The words
"believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan,"
and similar expressions and variations thereof, identify certain of such
forward-looking statements or forward-looking information, which speak only as
of the date on which they are made. In particular, statements relating to
future performance are forward-looking statements and forward-looking
information. Except to the extent required by law, CGI disclaims any intention
or obligation to publicly update or revise any forward-looking statements or
forward-looking information, whether as a result of new information, future
events or otherwise. Readers are cautioned not to place undue reliance on
these forward-looking statements or on this forward-looking information.
    %SEDAR: 00002790EF




For further information:

For further information: Investors: Lorne Gorber, Vice-President, Global
Communications and Investor Relations, (514) 841-3355, lorne.gorber@cgi.com;
Media: Philippe Beauregard, Director, Corporate Communications and Public
Affairs, (514) 841-3218, philippe.beauregard@cgi.com


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