UPDATE 2-Obamacare software contractor CGI posts profit

Thu Nov 14, 2013 11:27am EST
 
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* Adjusted profit C$0.67/share vs analysts' view C$0.62

* Revenue rises 53 pct to C$2.5 bln

By Alastair Sharp

TORONTO, Nov 14 (Reuters) - CGI Group Inc, the main contractor for the flawed website of President Barack Obama's healthcare program, said its pipeline of orders was strong despite the negative publicity from the project.

Shares in the Canadian software company jumped 7 percent after CGI posted a better-than-expected adjusted quarterly profit on Thursday.

CGI is at the center of a political storm in Washington over the rollout of the HealthCare.gov website, through which uninsured Americans can sign up for health insurance.

Because of technical glitches since the launch of HealthCare.gov on Oct. 1, just a tiny fraction of the hoped-for millions have signed up for insurance on the website, the Obama administration said on Wednesday.

CGI said bookings in its U.S. government business were strong, despite the website issues and the 17-day partial government shutdown in October.

In congressional testimony, contractors have described HealthCare.gov as one of the most complicated large-scale information technology systems ever, a line repeated by CGI Chief Executive Michael Roach on a call with analysts on Thursday.   Continued...