Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 

All statements in this Management's Discussion and Analysis of Financial Condition and Results of Operations that are not 

based on historical fact are  forward looking statements  within the meaning of the Private Securities Litigation Reform Act of 

1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange 

Act of 1934, as amended (which Sections were adopted as part of Private Securities Litigation Reform Act of 1995). While 

management has based any forward looking statements contained herein on its current expectations, the information on which 

such expectations were based may change.  These forward looking statements rely on a number of assumptions concerning 

future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that 

could cause actual results to materially differ from such statements.  Such risks, uncertainties, and other factors include, but are 

not necessarily limited to, those set forth under the caption  Risks Related to our Business.   In addition, we operate in a highly 

and rapidly changing environment, and new risks may arise.  Accordingly, investors should not place any reliance on forward 

looking statements as a prediction of actual results.  We disclaim any intention to, and undertake no obligation to, update or 

revise any forward looking statement. 

General 

We derive our revenues from delivering comprehensive business process outsourcing and information technology 

outsourcing solutions as well as system integration services to commercial, state and local, and federal government clients.  

A substantial portion of our revenues is derived from recurring monthly charges to our customers under service contracts 

with initial terms that vary from one to ten years. For the fiscal year ended June 30, 2003, approximately 91% of our 

revenues were recurring. We define recurring revenues as revenues derived from services that are used by our clients each 

year in connection with their ongoing businesses, and accordingly, exclude conversion and deconversion fees, software 

license fees, short term contract programming engagements, product installation fees, and hardware sales. Since inception, 

our acquisition program has resulted in geographic expansion, growth and diversification of our client base, expansion of 

services offered, and increased economies of scale. All share and per share information is presented giving effect to the two 

for one stock split of our Class A and Class B common shares that occurred February 22, 2002. 

We report our financial results in accordance with generally accepted accounting principles ( GAAP ).  However, we 

believe that certain non GAAP financial measures and ratios, used in managing our business, may provide users of this 

financial information with additional meaningful comparisons between current results and prior reported results.  Certain of 

the information set forth herein and certain of the information presented by us from time to time (including free cash flow 

and internal revenue growth) may constitute non GAAP financial measures within the meaning of Regulation G and Item 10 

of Regulation S K adopted by the SEC.  We have presented herein a reconciliation of these measures to the most directly 

comparable GAAP financial measure.  The presentation of this additional information is not meant to be considered in 

isolation or as a substitute for comparable amounts determined in accordance with generally accepted accounting principles 

in the United States. 

Significant Developments   Fiscal Year 2003 

During fiscal 2003, we signed contracts with new clients and increased business with existing clients representing $701 

million of annual recurring new revenue, an increase of 47% over the prior year.  The state and local segment contributed 

50% of new business signings, including new contracts with the Texas Health and Human Services Commission to provide 

fiscal agent and administrative services and New Jersey E ZPass to provide electronic toll collection services.  The 

commercial segment contributed 42% of new business signings, including new contracts with Motorola to provide human 

resource outsourcing and Ingram Micro to manage their IT infrastructure.  We define new business signings as recurring 

revenue from new contracts, including the incremental portion of renewals signed during the period and represent the 

estimated annual recurring revenues, as measured under GAAP, to be recorded under that contract after full implementation. 

We use new business signings as a measure of estimated recurring revenues represented by contractual commitments both to 

forecast prospective revenues and to estimate capital commitments. 

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