EDS shrinks quarterly loss


EDS shrinks quarterly loss

Electronic Data Systems has posted a significantly smaller net loss in the first quarter, ending 31 March, compared with last year's first quarter.

The company, which has been struggling with sagging sales, problematic contracts and a US Securities and Exchange Commission investigation, reported a net loss of $12m, compared with a net loss of $1.4bn for the same quarter the previous year.

Revenue came in at $5.43bn, up 4% from $5.22bn in last year's first quarter.

Excluding the company's UGS PLM Solutions software unit, which was sold during the first quarter, revenue was $5.2bn, also up 4% compared with last year's first quarter.

EDS signed $4bn in contracts, compared with $3bn in last year's first quarter.

The company did well winning contracts valued at less than $250m, and from the financial services, government and communications industry sectors. The company highlighted a sequential increase of 32%  for its business process outsourcing (BPO) contracts.

Chairman and chief executive officer Michael Jordan, said EDS finds itself much stronger financially, enjoys a stronger competitive position and has problem contracts under control.

EDS is on track to end 2004 with zero net debt and more than $5bn in liquidity, including nearly $4bn in unrestricted cash and marketable securities. Restructuring and cost-cutting measures are expected to generate savings of about $1bn in 2004.

Looking ahead to the second quarter, EDS expects to generate between $5.1bn and $5.2bn in revenues. For the full year, EDS expects revenue of between $20bn and $21bn.

Juan Carlos Perez writes for IDG News Service

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy