CGI (GIB) Expands Clientele With FBI and Honolulu County

Core Insights - CGI has been selected as a technology partner for the FBI, highlighting its capabilities in IT modernization and contributing to the FBI's goals of cost reduction and project success [1][9] - CGI Advantage, an ERP solution, has been successfully launched in Honolulu, integrating financial, personnel, and performance data, automating budget processes, and requiring significant technological upgrades [2][10] - CGI's engagement with Los Angeles County to modernize core systems represents a significant milestone, focusing on upgrading financial, budget, inventory, payroll, and human resources systems [3][12] Financial Performance - In Q2 2024, CGI's revenues increased by 0.7% year over year to CAD 3.7 billion, with government business revenues rising by 5.7% on a constant currency basis [4] - Overall bookings for the reported quarter were CAD 3.8 billion, achieving a book-to-bill ratio of 100% and 113% on a trailing 12-month basis, with a global backlog reaching CAD 26.8 billion [15] Strategic Partnerships - CGI's expanding customer base includes significant partnerships with the FBI and the City and County of Honolulu, aimed at modernizing governmental operations [8] - The collaboration with Los Angeles County will empower its workforce, enable data-driven decision-making, and support extensive operations, including payroll for over 110,000 employees and managing over $12 billion in disbursements [12] Market Position - CGI's strong partner base, including major companies like Alphabet, Microsoft, and Amazon, is expected to drive top-line growth [11] - Despite these advancements, CGI's shares have declined by 6.5% year to date, underperforming the broader Zacks Computer & Technology sector, which has returned 25.3% [13]