Or sales presentation is are folded from 7

Perfidious Albion was correct of Atos Origin. Computer services company took markets by surprise, yesterday revealing disappointing semi-annual sales and significantly reducing its prospects of results for 2006. The stock market reaction was immediate and without appeal: action dropped to 18.5 in mid-morning, before closing on a withdrawal of 17,63 at 36.50 euros. It has resulted in its wake all of the values of the (Capgemini in mind, 5.38) sector, already shrunken by the recent "profit warnings" of SAP and Business Objects.

For the first six months of the year, the SSII recorded a turnover of 2.7 billion, decreased by 1.1 over a year and slightly below expectations. Organic growth was 2.9, showing only a slight improvement in the second quarter ( 3.2) than in a first quarter already disappointing ( 2.7). Atos, which will detail its results on 6 September, also indicated that its half-yearly operating margin is only "slightly higher" at 5, i.e. 1 point less than the initial target. "This corresponds to an operating income of EUR 137.5 million, which is significantly less than our anticipation of 183 million", calculated Credit Switzerland.

But especially the prospects that crystallized the worries. Since the second half looks little glorious. Atos Origin has reduced its prediction of organic growth for the whole of the year at 3, while he thought until then achieve the 5. "The consensus of margin is therefore too high", adds the SSII. It was 7.8 to 7.9, while Atos said during a conference call, if waiting for a "slightly below 6.5 " margin.

"We were expecting weak results for Atos Origin, but they proved worse than expected," noted Merrill Lynch. For the software, the origin of the underperformance is in a word: Great Britain. Since the acquisition of Sema in 2004, this market is the largest of the company after the France and it realizes about 20 of its turnover. Or sales presentation is are folded from 7.9 in the first half.

Repositioning of the teams

First, gain new contracts was not up to the expectations. The Council activity has suffered "delays in the signing of major contracts of long duration in the public market", which fear a slowdown in the market. Thus, a part of the projected turnover "was extended in 2007". Then, the activity of integration was penalized by the completion of loss contracts which "have not generated a turnover and did not release the personnel sufficiently quickly transferred on new contracts". They impact of EUR 25 million operating result for the first half. Finally, the British subsidiary seems to have been the victim of an excessive turnover of staff. "KPMG has recently reactivated its Council activity debauching Atos Consulting teams formerly KPMG Consulting UK", is Morgan Stanley.

To redress the bar, Atos began a repositioning of its British business teams and indicates that it will recruit new partners to strengthen its domestic Council. "The decisions taken in 2006 prepare the group to a rebound in 2007", provides the software. Still to convince investors. UBS lowered its objective of course from 77 to 58 euros, Fideuram Wargny from 75 to 57 euros and CM - CIC from 70 to 61 euros.