EDS hit by US Airways difficulties

EDS is likely to be affected by the financial difficulties facing the US Airways Group, which filed for bankruptcy protection...

EDS is likely to be affected by the financial difficulties facing the US Airways Group, which filed for bankruptcy protection this week.

EDS shareholders are likely to see a three-cent cut on third-quarter earnings, the IT services firm has warned the US Securities and Exchange Commission.

EDS has a long-term contract to provide IT services to US Airways which generated $77m (£42.9m) in revenue for the company to June.

EDS had about $27m in receivables and accrued work in progress associated with that contract, as well as other net assets, such as equipment, with a net book value of around $16m, it warned the SEC. 

EDS closes its third quarter at the end of this month and typically reports third-quarter results toward the end of October..

Juan Carlos Perez writes for IDG News Service

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