Sector Update: Info Tech; CGI Gets Cameco SAP Services Contract, Open Text Posts Q2 Beat
Information technology shares were mostly lower in afternoon trading, but the S&P/TSX Info Tech index was up 1.9%, mostly driven by OpenText.
Top info tech shares:
BlackBerry (BB.TO): -3.5%
CGI Group (GIB-A.TO): -0.3%
Open Text (OTC.TO): +14.3%
Macdonald Dettwiler & Associates (MDA.TO): -0.5%
Wi-LAN (WIN.TO): -0.9%
In corporate news, IT consulting firm CGI Group has been chosen by Cameco to provide application management services for the uranium producer's SAP environment. Financial details of the contract weren't disclosed.
The services will be delivered locally through CGI's SAP Center of Excellence in Saskatchewan and will include day-to-day software support as well as services for software enhancements and preventative maintenance.
On the other hand, Open Text reported Wednesday after hours Q2 earnings and revenue that beat the Street view. It said non-GAAP-based EPS, diluted was $1.05 compared to $0.72 year-over-year, up 48%; GAAP-based EPS, diluted was $0.72 compared to $0.36 year-over-year up 100%, on a post stock-split basis.
Total revenue was $494.0 million, up 42% year-over-year.
The Street expected earnings of $0.94 per share on $478 million in revenue, according to Capital IQ estimates.
The company declared a quarterly cash dividend to holders of the company's common shares of $0.1725.
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