IMRglobal Reports First Quarter Results: Revenue Up 16% Sequentially Over Prior Quarter

First Quarter Highlights:



-- Gross Profit increases 58% over previous quarter.

-- Returned to profitability with 16% increase in revenue over previous

quarter.

-- Announced Merger with CGI Group Inc.



Financial Summary

($ in thousands, except per share data)



Quarter ended

March 31,

2001 2000

Revenue $ 61,604 $ 58,320

Gross Profit $ 24,489 $ 23,578

EBITDA (*) $6,781 $6,512

Cash EPS $0.09 $0.10



* Earnings before interest, taxes, depreciation and amortization.



Apr 26, 2001, 01:00 ET from IMRglobal

    CLEARWATER, Fla., April 26 /PRNewswire/ -- IMRglobal Corp. ("IMRglobal" or
 the "Company") (Nasdaq:   IMRS), a leading global provider of end-to-end
 information technology solutions, today announced results for the first
 quarter ended March 31, 2001.
     Revenue was $61.6 million for the first quarter ended March 31, 2001, an
 increase of 6% over the $58.3 million reported for the same quarter last year,
 and an increase of 16% over the $53.3 million for the fourth quarter of 2000.
 On a pro forma basis (excluding depreciation and amortization expenses, net of
 taxes), cash net income was $4.0 million for the quarter ended March 31, 2001.
 On the same pro forma basis, cash earnings per share-diluted was $0.09 for the
 quarter ended March 31, 2001.
     Satish K. Sanan, Chief Executive officer of IMRglobal, said, "Despite the
 difficult general economic and industry specific market conditions, we are
 pleased to report meaningful organic growth compared to both the prior quarter
 and the same period last year.  In addition, we are encouraged by the
 significant opportunities in our sales pipeline for our insurance and
 healthcare solutions.  In particular, our strong vertical industry expertise,
 our eCRM tools and solutions, and our component based development solutions
 are providing the 'sharp edges' that differentiate IMRglobal from many of our
 competitors enabling us to establish new customer relationships."
     Mr. Sanan continued, "I am also pleased to report that our proposed merger
 with CGI Group Inc. is on track.  As previously reported, we expect to be able
 to seek shareholders' approval in June.  We are pleased with our choice of CGI
 as our strategic partner.  The growing demand for business process and I.T.
 outsourcing make the merger particularly timely.  CGI's outsourcing
 experience, combined with IMRglobal's vertical industry solutions and
 knowledge, strong U.S. presence and India software development centers, will
 give the combined company a competitive edge and position us to make
 significant inroads in the U.S. outsourcing market."
 
     About IMRglobal Corp.
     IMRglobal is a leading global provider of end-to-end information
 technology solutions to Fortune 500 and Global 2000 companies in key vertical
 industries.  Those industries include financial services, healthcare,
 government, utilities, retail & distribution and manufacturing/distribution.
 IMRglobal's services include business consulting, e-business, software
 development, application management and professional services.  For more
 information on IMRglobal, visit http://www.imrglobal.com .
 
     Safe Harbor Statement
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995: With the exception of statements regarding historical matters and
 statements regarding the company's current status, certain matters discussed
 herein are forward-looking statements that involve substantial risks and
 uncertainties.  These forward-looking statements may include those identified
 by the use of the words "anticipate," "believe," "estimate," "expect,"
 "intend" and similar expressions.  Actual results, performance or achievements
 could differ materially from these forward-looking statements.  Factors that
 could cause or contribute to such material differences include the failure to
 convert prospects into actual business, risks related to our proposed merger
 with CGI, variability of operating results, potential cost overruns on fixed-
 price projects and competition in the IT services industry.  A discussion of
 these and other risk factors that may cause actual results to differ from
 these forward-looking statements can be found in the company's periodic
 filings with the SEC under the Securities Exchange Act of 1934.
 
 
                                  IMRglobal Corp.
                          CONDENSED STATEMENTS OF INCOME
                       (In thousands, except per share data)
 
                                                      Three Months Ended
                                                            March 31,
 
                                                      2001             2000
 
     Revenue                                        $61,604           $58,320
     Cost of revenue                                 37,115            34,742
 
          Gross profit                               24,489            23,578
          Percentage of revenue                         40%               40%
 
     Selling, general and administrative             17,634            16,388
     Research & development                              74               678
 
          Earnings before interest, taxes,
           depreciation and
             amortization (EBITDA)                    6,781             6,512
          Percentage of Revenue                         11%               11%
 
     Depreciation                                     1,489             1,385
     Goodwill and intangible amortization             2,585             2,445
 
          Income from operations                      2,707             2,682
 
     Other income (expense)                            (595)              109
 
     Income before provision for income
      taxes                                           2,112             2,791
     Provision for income taxes                       1,437             1,258
 
     Net income                                        $675            $1,533
     Earnings per share - diluted                     $0.02             $0.04
 
     Pro forma "cash" net income (A)                 $4,022            $4,302
     Pro forma "cash" earnings
       per share - diluted (A)                        $0.09             $0.10
 
     Shares outstanding - diluted                    44,435            42,335
 
     (A) Pro forma "cash" net income and earnings per share-diluted exclude
         amortization and depreciation, net of income taxes
 
 
                                  IMRglobal Corp.
                             CONDENSED BALANCE SHEETS
                                  (In thousands)
 
                                                  March 31,       December 31,
                                                     2001              2000
     Assets
     Current assets:
          Cash                                      $10,963           $19,689
          Accounts receivable, net                   47,395            41,738
          Unbilled work in process                   17,588            13,747
          Other current assets                       17,771            18,254
 
          Total current assets                       93,717            93,428
 
     Property and equipment, net                     40,709            41,521
     Other assets                                   174,248           183,886
 
             Total assets                          $308,674          $318,835
 
     Liabilities and Shareholders' Equity
 
     Deferred revenue                                $5,195            $6,360
     Other current liabilities                       39,216            43,516
 
             Total current liabilities               44,411            49,876
 
     Long Term Debt                                  31,050            30,894
     Other Liabilities                                5,512             6,285
 
             Total liabilities                       80,973            87,055
 
     Shareholders' equity                           227,701           231,780
 
             Total liabilities and
              shareholders' equity                 $308,674          $318,835
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16594823
 
 

SOURCE IMRglobal
    CLEARWATER, Fla., April 26 /PRNewswire/ -- IMRglobal Corp. ("IMRglobal" or
 the "Company") (Nasdaq:   IMRS), a leading global provider of end-to-end
 information technology solutions, today announced results for the first
 quarter ended March 31, 2001.
     Revenue was $61.6 million for the first quarter ended March 31, 2001, an
 increase of 6% over the $58.3 million reported for the same quarter last year,
 and an increase of 16% over the $53.3 million for the fourth quarter of 2000.
 On a pro forma basis (excluding depreciation and amortization expenses, net of
 taxes), cash net income was $4.0 million for the quarter ended March 31, 2001.
 On the same pro forma basis, cash earnings per share-diluted was $0.09 for the
 quarter ended March 31, 2001.
     Satish K. Sanan, Chief Executive officer of IMRglobal, said, "Despite the
 difficult general economic and industry specific market conditions, we are
 pleased to report meaningful organic growth compared to both the prior quarter
 and the same period last year.  In addition, we are encouraged by the
 significant opportunities in our sales pipeline for our insurance and
 healthcare solutions.  In particular, our strong vertical industry expertise,
 our eCRM tools and solutions, and our component based development solutions
 are providing the 'sharp edges' that differentiate IMRglobal from many of our
 competitors enabling us to establish new customer relationships."
     Mr. Sanan continued, "I am also pleased to report that our proposed merger
 with CGI Group Inc. is on track.  As previously reported, we expect to be able
 to seek shareholders' approval in June.  We are pleased with our choice of CGI
 as our strategic partner.  The growing demand for business process and I.T.
 outsourcing make the merger particularly timely.  CGI's outsourcing
 experience, combined with IMRglobal's vertical industry solutions and
 knowledge, strong U.S. presence and India software development centers, will
 give the combined company a competitive edge and position us to make
 significant inroads in the U.S. outsourcing market."
 
     About IMRglobal Corp.
     IMRglobal is a leading global provider of end-to-end information
 technology solutions to Fortune 500 and Global 2000 companies in key vertical
 industries.  Those industries include financial services, healthcare,
 government, utilities, retail & distribution and manufacturing/distribution.
 IMRglobal's services include business consulting, e-business, software
 development, application management and professional services.  For more
 information on IMRglobal, visit http://www.imrglobal.com .
 
     Safe Harbor Statement
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995: With the exception of statements regarding historical matters and
 statements regarding the company's current status, certain matters discussed
 herein are forward-looking statements that involve substantial risks and
 uncertainties.  These forward-looking statements may include those identified
 by the use of the words "anticipate," "believe," "estimate," "expect,"
 "intend" and similar expressions.  Actual results, performance or achievements
 could differ materially from these forward-looking statements.  Factors that
 could cause or contribute to such material differences include the failure to
 convert prospects into actual business, risks related to our proposed merger
 with CGI, variability of operating results, potential cost overruns on fixed-
 price projects and competition in the IT services industry.  A discussion of
 these and other risk factors that may cause actual results to differ from
 these forward-looking statements can be found in the company's periodic
 filings with the SEC under the Securities Exchange Act of 1934.
 
 
                                  IMRglobal Corp.
                          CONDENSED STATEMENTS OF INCOME
                       (In thousands, except per share data)
 
                                                      Three Months Ended
                                                            March 31,
 
                                                      2001             2000
 
     Revenue                                        $61,604           $58,320
     Cost of revenue                                 37,115            34,742
 
          Gross profit                               24,489            23,578
          Percentage of revenue                         40%               40%
 
     Selling, general and administrative             17,634            16,388
     Research & development                              74               678
 
          Earnings before interest, taxes,
           depreciation and
             amortization (EBITDA)                    6,781             6,512
          Percentage of Revenue                         11%               11%
 
     Depreciation                                     1,489             1,385
     Goodwill and intangible amortization             2,585             2,445
 
          Income from operations                      2,707             2,682
 
     Other income (expense)                            (595)              109
 
     Income before provision for income
      taxes                                           2,112             2,791
     Provision for income taxes                       1,437             1,258
 
     Net income                                        $675            $1,533
     Earnings per share - diluted                     $0.02             $0.04
 
     Pro forma "cash" net income (A)                 $4,022            $4,302
     Pro forma "cash" earnings
       per share - diluted (A)                        $0.09             $0.10
 
     Shares outstanding - diluted                    44,435            42,335
 
     (A) Pro forma "cash" net income and earnings per share-diluted exclude
         amortization and depreciation, net of income taxes
 
 
                                  IMRglobal Corp.
                             CONDENSED BALANCE SHEETS
                                  (In thousands)
 
                                                  March 31,       December 31,
                                                     2001              2000
     Assets
     Current assets:
          Cash                                      $10,963           $19,689
          Accounts receivable, net                   47,395            41,738
          Unbilled work in process                   17,588            13,747
          Other current assets                       17,771            18,254
 
          Total current assets                       93,717            93,428
 
     Property and equipment, net                     40,709            41,521
     Other assets                                   174,248           183,886
 
             Total assets                          $308,674          $318,835
 
     Liabilities and Shareholders' Equity
 
     Deferred revenue                                $5,195            $6,360
     Other current liabilities                       39,216            43,516
 
             Total current liabilities               44,411            49,876
 
     Long Term Debt                                  31,050            30,894
     Other Liabilities                                5,512             6,285
 
             Total liabilities                       80,973            87,055
 
     Shareholders' equity                           227,701           231,780
 
             Total liabilities and
              shareholders' equity                 $308,674          $318,835
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16594823
 
 SOURCE  IMRglobal