CS first half 2008 revenues

Organic growth: +4%
Strong growth in France: +10.5%
Book-to-bill ratio of 1

The CS Group reported consolidated revenues of €114,7 million for the first half of 2008, up 4% from year ago level at constant perimeter ( 4.2% at constant change rate and scope).

Revenues rose by 11% in the first quarter. In the second quarter, revenues reached €60.5 million, a 1.6% year-on-year decrease at constant scope. The inflexion was attributable to order intakes postponements in the first quarter and to the fact that negotiations have not yet outcome over excess costs resulting from delays in an Intelligent Transport project in the US. Thus the US subsidiary revenues went down by  €5.1 million compared to H1 2007.

Thanks to a 27% increase in new orders in the second quarter, total order intakes reached €114.4 million during the first half, bringing the book-to-bill ratio to 1 and the backlog to almost 16 months of revenues. The Group thus continued to gather momentum in its markets.

tableau test


H1 2007

H1 2008

H1 08/H1 07
at constant scope

French companies




Foreign companies



- 46,8%





in France




(Foreign companies & exports)




Business analysis

By geographic market

France: The French activities generated revenues of €88.5 million in the first half, for a 10.5% increase driven chiefly by the Energy and Space sectors. Postponed order intakes in the first quarter dragged the growth rate lower during the second quarter(up 8% for Q2 2008 versus up 13.3% for Q1 2008. CS strategic sectors continued to trend favorably, as witnessed by the rebound in order intakes in the second quarter.

International: Revenues (including exports from French companies) reached €26.2million and represented 23% of total revenues, reflecting a great performance of exports despite the already mentioned US project impact.

CS dedicated significant pre-sales efforts abroad in the area of C4I (Computerized Command, Control, Communications &  Intelligence) and built a Battlelab, technico-operational laboratory, at the Plessis-Robinson site. Those capabilities were demonstrated to international clients during the first half.

By industry

Defense, Space and Security :  During the second quarter, CS was selected as prime contractor for the Kheper project (system for the production, qualification, management and distribution of geographic data obtained by space-based imaging), in a deal worth €21 million before tax. This success illustrates the group's focus in the fields of space and image processing technologies in accordance with the strategy set out in the "Livre Blanc" (defense review) which gives priority to both the space segment and intelligence.

As a leading player in information and communication system security, the group was chosen to upgrade the interbank authorization network French system (ersbÒ) to comply with Single Euro Payments Area requirements.

Aerospace: Revenues resumed the upward trend in the second quarter. During the first half, the group was listed as "preferred supplier" for PLM and technical data management systems as well as engineering services for EADS. They underline CS competitiveness and technological expertise, opening up new horizons for the group in Europe.

Energy: CS was selected by the research center of the French Atomic Energy Commission to revamp the dataloggers at the Laboratoire Hydraulique du Coeur (STRI/LHC), and by Gaz de France to conduct high-performance computing and implement a simulation platform for fissure impact. CS also renewed its Application Management contracts for the modeling and simulation software used by the Atomic Energy Commission.

Transportation: Business grew in spite of the US subsidiary revenues fell down, thanks to numerous projects being executed and new contracts won to operate highway infrastructure in Chile.

The group had a total of 2,168 employees at June 30th, 2008, up from 1,884 at December 31st, 2007. It recruited 380 new employees in the first half (including 149 in Chile), compared to the 360 new recruited in 2007. The average occupation rate for billable employees during the half was 82.5%, against 83.5% in 2007.

Given the significant pre-sales efforts made during the first six months and the difficulties encountered with one ITS contract in the US, operating margin for the first half of 2008 will be highly affected and will not be representative of the long-term group's trends.

CS will release its first-half results on August 31st, 2008 and hold a presentation meeting on Monday, September 1st, at 10:00 a.m.

Press relations
CS Communication & Systèmes
Barbara Goarant
Tel.: +33 (0)1 41 28 46 94

Investor relations
CS Communication & Systèmes
Hugues Rougier
Tel.: +33 (0)1 41 28 44 44