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Cap Gemini Forecasts Demand for Computer Services Will Pick Up

Cap Gemini SA, a French competitor to International Business Machines Corp., forecast that demand for computer services will pick up in the second quarter after bookings improved in February and March.

Shares of the Paris-based company jumped as much as 4.1 percent in Paris trading. Cap Gemini, whose clients include luxury carmaker Rolls-Royce, reported today first-quarter revenue shrank 2.6 percent to 2.5 billion euros ($3.3 billion). Bookings improved over the quarter, reaching 2.17 billion euros, just under last year’s 2.21 billion euros.

“We have a decent pipeline for the second quarter,” Cap Gemini Chief Executive Officer Paul Hermelin said on a conference call. “We expect a significantly improved context in the second quarter in France and we’ve seen encouraging signs in North-America.”

The company, which makes about 40 percent of its revenue from France and the U.S. combined, confirmed its forecast for a revenue increase of 1.2 percent in 2013, excluding acquisitions and currency fluctuations. It had sales of 10.26 billion euros last year. French rival Atos said last week that demand will improve during the year after reporting first-quarter sales it said were a low point of 2013.

Cap Gemini shares traded up 3.6 percent at 36.19 euros at 11:46 a.m. in Paris.

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