CGI's U.S. Public Sector Tax and Revenue Clients Collect More Than $2 Billion in Additional Revenues
(Marketwire (Canada) Via Acquire Media NewsEdge) FAIRFAX, VIRGINIA--(Marketwire - Nov. 27, 2012) - CGI Group Inc. (NYSE:GIB) (TSX:GIB.A), a leading provider of information technology and business process services, today announced that six U.S. states - California, North Carolina, Virginia, Hawaii, Kansas and Missouri - have certified that they have collected more than $2 billion in additional revenues as a result of collections and tax modernization projects implemented by CGI.
Through CGI's unique "benefits-funding" model, these fixed-price performance-based projects are funded from a percentage of increased revenues. Both CGI and the client share in the success of this model where no monies are paid to CGI from a state until revenue is generated. Through this approach, CGI has achieved or exceeded client revenue collection expectations while fully realizing CGI's contract value. In addition to recovering significant revenue to support State General Fund operations, CGI's solutions help states improve collections, tax discovery, customer service and tax administration as well as flex and adapt to changing legislative requirements and technology opportunities.
CGI's latest tax modernization and collections solution is underway for the California Franchise Tax Board (FTB). In just 15 months, the Enterprise Data to Revenue (EDR) project has generated more than $128 million for the State - 81 percent ahead of projections - with total revenue increases for the State of $2.8 billion projected by 2016-2017. When complete, EDR is expected to deliver revenue increases of $1 billion annually for the State of California.
"Our partnership with CGI is instrumental to our success. It's great to have the commitment and competence of an organization like CGI and its partners on the team. Additionally, we have the full support of everyone here at FTB, and that's crucial for the project, today and over the next several years," said Kem Musgrove, Technical Director, California Franchise Tax Board.
"CGI partners with our public sector clients to develop effective solutions for raising much-needed revenues," said Ted London, Vice-President, CGI's public sector tax, revenue and collections practice. "Having led more than 20 major tax implementations worldwide, CGI sets the standard for collections automation, web-based tax administration and benefits-funded financing."
Founded in 1976, CGI Group Inc. is the sixth largest independent information technology and business process services firm in the world. With approximately 72,000 professionals located in offices and global delivery centers in the Americas, Europe and Asia Pacific, CGI offers a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as more than 100 proprietary solutions. Further to the recent completion of the Logica acquisition, CGI's annualized revenue is approximately C$10.4 billion, with an estimated order backlog of approximately C$17.7 billion, CGI's shares are listed on the NYSE (GIB) and the TSX (GIB.A) and are included in the FTSE4Good Index. Website: www.cgi.com.
CGI 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 Canadian securities laws. These statements and this information represent CGI's 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 but 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 IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI's annual and quarterly Management's Discussion and Analysis ("MD&A"), in CGI's Annual Report, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company's 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, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Senior Vice-President, Global Communications
and Investor Relations
Vice-President, US Communications
Source: CGI Group Inc.
[ Back To Technology News's Homepage ]