| EDS reports strong third-quarter results |
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| | EDS has posted earnings
of $125m, or 24 cents
per share in the
July-September period,
compared with $8m, or 2
cents per share, a year
earlier. The company
said it would have
earned $128m in the
recent quarter after
one-time losses from
discontinued operations
and a small gain from
spending less than
expected on
restructuring.
Revenue rose 8.6%, or
6% on an organic basis,
to $5.29bn from $4.87bn
a year ago. Analysts had
expected a profit of 20
cents per share on
revenue of $5.32bn.
EDS signed $3.5bn in
contracts in the third
quarter of 2006 versus | |
| |
| | Mike Jordan, EDS
chairman and chief
executive officer.
Jordan said EDS
continued to improve its
work on the Navy Marine
Corps Intranet contract
in the third quarter and
that it will continue to
generate positive
results. The company has
previously said that it
stopped losses on the
multibillion-dollar
project to build a
communications network
linking land and sea US
Navy facilities around
the world. During the
first three quarters of
last year, the losses on
the contract dragged
earnings down 8 cents a
share for the period.
By segment, EDS’
government practice | |
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| | reported revenue of
$895m, up 27% compared
to the prior-year period
due primarily to the US
Navy contract. Operating
profit was $215m, up
180% from $77m in the
prior-year period, due
primarily to improved
financial performance of
the Navy Marine Corps
Intranet contract and
state and local
government contracts.
The Americas saw
revenue of $2.34bn, up
2% compared to the
prior-year period.
Operating profit was
$349m, up 1% from $345m
in the prior-year
period.
EMEA reported revenue
of $1.54bn, up 4%
compared to the
prior-year period. | |
|
| | Operating profit was
$228m, up 10% from $206m
in the prior-year
period, due to improved
contract execution.
For Asia-Pacific,
revenue was $389m, up
12% compared to the
prior-year period due
primarily to MphasiS
revenues. Operating
profit was $53m, up 68%
from $31m in the
prior-year period, due
to improvements in
contracts, productivity
and MphasiS.
EDS narrowed its
forecast for full-year
2006 revenue to $21.1bn
to $21.3bn and earnings
of 83 to 88 cents per
share, excluding
one-time costs.
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| | $5.3bn in the year-ago
quarter. Signings
included contracts with
Delphi, Visanet, Dollar
Thrifty Automotive
Group, Centers for
Medicare & Medicaid
Services, and the US
Army. For the first nine
months of 2006, contract
signings totalled
approximately $18.9bn, a
28% increase over the
year-ago period.
"EDS posted another
solid quarter,
reflecting improved
execution on contracts,
increased productivity
and better management of
overhead costs," said | |
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