After multiple delays caused by it grappling with
accounting issues, services provider EDS has finally reported a net
loss of $153m (£82m) for the third quarter of this
year.
The loss was affected by an asset impairment charge of $375m
associated with the company's Navy Marine Corps intranet project.
The contract was awarded in 2000 but has been plagued by delays and
has drained cash from EDS.
The company also restated results for the third and fourth
quarters of 2003. KPMG, its outside auditor, recommended the
restatement to reflect a more appropriate allocation of money that
EDS sets aside and accrues as an expense for subsequent employee
bonuses.
EDS spokesman Terry Balluck said an internal audit committee had
completed an investigation of the accruals and other adjustments
and found that there had been no improper activities or conduct
connected with them.
The third-quarter 2004 loss compares with a restated net loss of
$16m in last year's third quarter. Revenue in the third quarter of
2004 was $4.95bn, down 1% from a year earlier. EDS signed $3.3bn
worth of contracts in the quarter, up 4% on last year's third
quarter.
Stephen Lawson writes for IDG News Service