Cap Gemini Ernst & Young (CGE&Y), Europe's biggest IT services provider, has posted a €514m (£351m) net loss for its 2002 financial year.
This compares with a net income of €152m in 2001. Revenues were down 16 per cent to €7.05bn.
But analysts said that the company's net cash of €465m, substantially higher than expectations, had succeeded in easing concerns about the rest of the balance sheet.
The company admitted that 2002 did not see the recovery hoped for by many at the beginning of the year.
But a breakdown of the results showed positive signs for the company's outsourcing business, with revenues increasing from 21 to 27 per cent. The top vertical sector was health and public service-related business, which grew from 16 to 26 per cent.
The company also said that a three-year restructuring plan, announced last June, was beginning to produce results.
The restructuring included a reorganisation of the firm's four disciplines, the simplifying and streamlining of operating structures, and the launch of new sales channels and initiatives.
In a statement CGE&Y said it was prepared for a slight decrease in revenues in the first half of 2003 but that it "maintains the ambition" to bring operating margins back to five per cent.
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