CGI Posts Q3 Bookings of $1 Billion, Grows Year-Over-Year Revenue by 8% and Increases Net Earnings by 80%



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

    Q3 Highlights

    - Revenue of $933.3 million;
    - Net earnings of $64.4 million;
    - Net earnings margin of 6.9%;
    - Basic EPS of 20 cents;
    - Cash generated from operating activities of $134.6 million;
    - Debt reduction and stock buy backs totaled $86.1 million;
    - Bookings of $1.0 billion.

    Note: Full Q3 F2007 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, Aug. 1 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE:   GIB)
reported fiscal 2007 third quarter revenue today of $933.3 million,
representing 7.7% year-over-year growth.
    On a constant currency basis, the Company grew by 8% year-over-year - 6%
in Canada; 10% in the U.S.; and 15% in Europe and Asia Pacific - and slightly
improved on a sequential basis.
    Net earnings in Q3 were $64.4 million or 6.9% of revenue compared with
net earnings of $35.9 million or 4.1% of revenue in the same quarter last
year. This represents an 80% increase year-over-year.
    Basic earnings per share in the third quarter were 20 cents, and 19 cents
on a fully diluted basis. This compares with 11 cents on both a basic and
fully diluted basis in the same period last year.
    The Company generated $134.6 million in cash from its operating
activities, or 14.4% of revenue. This compares with $107.6 million in the
third quarter of fiscal 2006. Over the last twelve months, CGI has generated
$481.6 million or $1.45 in cash per share from its operating activities.
    "Our strategic initiatives, including our full offering business
development strategy and the accelerated deployment of our global delivery
model, continue to yield the desired positive outcomes of increased bookings,
revenue and margins," said Michael E. Roach, President and Chief Executive
Officer.

    
    -------------------------------------------------------------------------
    In 000's except margin, share data amounts and ratios

                                                   Nine months   Nine months
                                                   ending June   ending June
                          Q3 F2007      Q3 F2006      30, 2007      30, 2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue             $  933,318    $  866,504    $2,788,720    $2,631,803
    -------------------------------------------------------------------------
    Net earnings        $   64,433    $   35,944    $  170,825    $  107,001
    Margin                     6.9%          4.1%          6.1%          4.1%
    -------------------------------------------------------------------------
    Basic earnings
     per share          $     0.20    $     0.11    $     0.52    $     0.29
    -------------------------------------------------------------------------
    Fully diluted
     earnings per
     share              $     0.19    $     0.11    $     0.51    $     0.29
    -------------------------------------------------------------------------
    Weighted average
     number of
     outstanding
     shares            328,830,594   338,714,368   329,451,399   371,656,027
    -------------------------------------------------------------------------
    Interest on
     long-term debt     $    9,375    $   13,146    $   33,488    $   29,852
    -------------------------------------------------------------------------
    Total long-term
     debt               $    518.1    $    810.7
    ----------------------------------------------
    Net debt to
     capitalization           17.7%         25.5%
    ----------------------------------------------
    Days of sales
     outstanding (DSO)          43            48
    ----------------------------------------------
    Bookings            $1,006,858    $  877,177
    ----------------------------------------------
            Note: All dollar figures are in Canadian dollars, unless
                  otherwise specified.
    

    During the quarter, the Company booked $1.0 billion in new contract wins,
extensions and renewals, resulting in a book-to-bill of 108% in the quarter.
At the end of June 2007, the Company's backlog stood at $12.4 billion or more
than 3.5 times annualized revenue.
    As part of its Normal Course Issuer Bid, the Company repurchased for
cancellation 1.3 million subordinate class A shares during the third quarter
at an average price of $11.28 per share, for a total investment of       
$14.4 million. To date in fiscal 2007, the Company has bought 6.7 million
shares at an average price of $9.53 per share for a total investment of  
$63.8 million.
    In addition, long-term debt decreased by $75.9 million during the
quarter. At the end of June 2007, net debt was reduced to $421.4 million,
improving the Company's net debt to capitalization ratio to 17.7%. The Company
continues to enhance its financial flexibility to invest in large outsourcing
contracts, accretive acquisitions, buy back additional shares of CGI and
continue to reduce debt.
    "I am very pleased with our strong overall performance this quarter and
year-to-date. I am also pleased that the market has begun to reflect our
performance in the valuation of CGI's equity. As we continue executing to our
strategic plan, there remain significant appreciation opportunities,"
concluded Michael E. Roach.

    Quarterly Conference Call

    CGI's Executive Team will host a conference call to discuss results at
9:00 am EDT this morning. Participants may access the call by dialing
toll-free (866) 542-4146 or on www.cgi.com. Supporting slides for the call
will also be available. For those unable to participate on the live call, a
webcast as well as a copy of the slides will be archived. In addition,
podcasts of earnings calls are available for download through RSS feeds or on
www.cgi.com.

    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 25,500 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 annual revenue
run rate stands at $3.7 billion (US$3.5 billion) and at June 30th, 2007, CGI's
order backlog was $12.4 billion (US$11.6 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 sections 138.3 and following 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. 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.




For further information:

For further information: Investors: Lorne Gorber, Vice-President, Global
Communications and Investor Relations, (514) 841-3355; Media: Philippe
Beauregard, Director, Corporate Communications and Public Affairs, (514)
841-3218


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