Atos Origin 1Q Revenue Drops; Confirms 2010 Targets

French IT services group Atos Origin (ATO.FR) Wednesday reported a 4.9% drop in first-quarter revenue but confirmed its full-year target.

The Paris-based company, which manages the IT systems for the Olympic Games, said that in 2010 it still wants to improve its operational margin by between 50 and 100 basis points, despite an expected drop in organic revenue this year due to the bankruptcy of German department store retailer Arcandor.

Revenue for the quarter ended March 31 was EUR1.23 billion, down from EUR1.29 billion in the same period last year, due notably to a decline in consulting activities.

The figure was in line with an average EUR1.23 billion forecast by five analysts polled by Dow Jones Newswires.

On an organic basis, stripping out acquisitions, disposals and currency movements, revenue fell 5.5% in the first quarter, Atos said in a statement.

Along with rivals Capgemini (CAP.FR) and U.K.-based Logica PLC (LOG.LN), the company has been fighting tough market conditions since last year, as big customers have delayed investment and purchasing plans amid the financial and economic crisis.

Atos shares on Tuesday closed at EUR37.77. The stock has gained about 18% since the start of the year.

-By Ruth Bender, Dow Jones Newswires; [phone]; [e-mail]