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US contracts fuel profit rise for CSC
 
  
   
 
 
 
 
 third quarter, net
income rose to $203.5m,
or $1.08 per share, from
profit of $157.5m, or 82
cents a share a year
earlier. Revenue rose to
$3.58bn from $3.49bn.
   CSC said revenue
growth during the
quarter was primarily
lead by the company's US
federal government and
US commercial		 
 operations.
   CSC said revenue from
US federal government
contracts rose 6.9% to
$1.22bn, including
$820.1m from
defence-related
consulting. Revenue from
the private sector
increased to $2.35bn
from $2.34bn.
   "The market for US
federal government		 
 information technology
services continues to
demonstrate solid
demand," said Van
Honeycutt, CSC chairman
and CEO. "Over the next
14 months, through
fiscal 2007, our US
federal pipeline of
opportunities is
approximately $28bn,
comprised of about 390
programs from a broad		 
 range of government
agencies and
departments."
   Media reports have
speculated that both CSC
and Affiliated Computer
Services have been the
targets of private
equity firms. Honeycutt,
however, refused to
comment on the rumours.
   		 
 Computer Sciences
Corporation reported a
29% rise in quarterly
profit amid growing
demand from US
government agencies and
companies.
   For CSC's fiscal		 
 
EDS doubles fourth quarter profit on flat revenues
 
  
   
 
 
 
 
 General Motors, gave EDS
the biggest share of the
$7.5bn of outsourcing
contacts the automaker
signed with several IT
vendors.
   EDS reported earnings
of $112m or 21 cents per
share in the last three
months of the year,
compared to $53m or 10
cents per share a year
earlier.
   The company said it
would have earned $131m		 
 or 25 cents per share,
excluding the cost of
stock options and
restructuring
expenditures, two cents
ahead of analysts'
forecasts that excluded
such items.
   Revenue rose slightly
to $5.15bn from $5.09bn
a year earlier. Analysts
had expected $5.09bn in
the recent quarter.
   EDS signed $5.3bn in
new contracts in the		 
 fourth quarter, up from
$3.7bn a year earlier.
   Outlining further
steps to accelerate the
company's turnround, CEO
Michael Jordan said EDS
is looking to buy
companies in low-cost
countries and send more
work there to boost
profit margins.
   Furthermore, EDS is
looking to double the
number of people it
employs in low-cost		 
 countries from the
current level of 14,000
by 2007-2008, with India
being the main area of
focus for growth and a
likely expansion in
China.
   He described likely
acquisitions targets as
"medium-sized" and worth
"several hundred
million" dollars each.
  
   		 
 Electronic Data Systems
has reported a doubling
of fourth-quarter profit
even though revenue was
virtually flat, citing
spending cuts.
   The company was given
a vote of confidence
last week when its
largest customer,		 
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