(January 22 – 15:30 ET) – Star Data Systems is reporting improved financial results for the second quarter of fiscal 2001 ended Nov. 30, 2000.

Net income for the second quarter came in at $1.6 million, or 10¢ a share, which is 36% higher than the second quarter of fiscal 2000. Year to date net income is 19¢ a share, 45% higher than the same period a year ago.

The net income improvements followed on from improved revenues in the second quarter of $21.4 million, up 8% from the second quarter of fiscal 2000, and the highest in the company’s history. For the year to date, revenues were $41.8 million versus $40.5 million a year ago. Cash flow from operations for the quarter was 28¢ per share, up from 26¢ in 2000.

“We are extremely pleased with the significant progress made in improving profitability and revenue growth in the past two years” said Alan Hutton, Star Data’s president and CEO.

On Dec. 1, 2000, CGI Group Inc. and Star Data announced that their respective boards had approved a proposed transaction whereby CGI would offer to acquire all of the issued and outstanding common shares of Star Data. On January 9, CGI announced that over 80% of Star Data’s shares were tendered to its offer and all conditions of closing were met.

“We are proud that CGI Group has recognized the shareholder value that has been created and the strategic benefits we will bring to them. The integration with CGI will also benefit both our customers and employees by leveraging our combined strengths,” says Hutton.

“We are truly pleased with Star Data’s latest results,” said Michael Roach, CGI’s executive vicepresident and general manager, Canada. “Their strong management skills have allowed Star Data to grow both top and bottom line in their latest quarter, which supports CGI’s positive outlook about their business model. With Star Data part of the CGI team, we look forward to further developing opportunities in this promising market.”
-IE Staff