Without its acquisitions of the Dutch and Swedish companies Volmac Software Groep NV and Programmator AB last year, Cap Gemini Sogeti SA, France’s software and services giant, would have recorded the first drop in its revenues – of 4% to 5% – in its history. As it was, in its provisional report of 1992 results, Cap Gemini showed a 19% increase in revenues, to the equivalent of $2,260m. The group acknowledged that the increase was due solely to those acquisitions. The revenue figure does not include $370m from Gemini Consulting, which comes under under the parent company Sogeti SA. Gemini Consulting’s 1992 revenues represented a 37% rise over 1991’s $270m. The consolidated net profit was down dramatically, to only $8.5m from $110.38m in 1991. Cap Gemini noted that net earnings take into account charges of $63.8m and $22.1m for restructuring and loan repayment, respectively. After accounting for $23.6m in minority payments for companies for which Cap Gemini does not hold 100% ownership, the group net result registered a $15.1m loss. The first half results were satisfactory; all of the countries where we operate, except perhaps Sweden, were good at the end of the first half of 1992, said Vincent Grimond, Cap Gemini’s chief financial officer. Then everyone discovered the nasty economic surprise in the second half, and we didn’t escape it either. Revenues just sort of crumbled away in the second half, not big chunks, but just little bits kept falling away. Company officials said they had eliminated 900 jobs in 1992. Arnaud added that no further lay-offs were expected for this year. Jacques Arnoud, one of CGS’ three group presidents, said, following negotiations with French unions, the number of jobs eliminated in France will be below the 600 previously announced. Arnoud said revenues break down by technology area, approximately, thus: consulting, 10%; system development projects, 60%; facilities management, 20%; training and professional services, 5%; and products, 7.5%. Geoff Unwin, another CGS president, said Cap Gemini’s UK subsidiary, formerly Hoskyns, had doubled its order book for facilities managment contracts in the last year. Geographically Grimond said the Nordic countries were the hardest hit by the recession, while results from Benelux could be seen as elegant.