Feeds

EDS cuts losses

Navy deal still costing it money...

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Services giant EDS has lost a mere $12m in the first quarter, versus a $1.4bn loss for the same period last year. It claimed losses would have been as low as $3m excluding a one-off restructuring charge and gains from a divestiture.

Sales were $5.43bn, up 4 per cent compared to the same period a year ago. EDS signed contracts worth $4bn in the three months. Sales were particularly strong for contracts worth less than $250m in financial services, government and communications.

Mike Jordan, chairman and CEO at EDS, said: "We are pleased with the progress we made in the quarter. We met our financial commitments, delivered excellent programs for our clients, finalized our leadership team and began to generate sales momentum."

EDS is still dealing with some problem contracts - its $8.8bn deal to build a intranet for the US Navy contributed losses of $145m. The company is trying to extricate itself from another contract which lost it $94m in the period. The accounts say it is still negotiating to terminate the contract.

According to Jordan, the three-fold strategy - reducing the risks associated with the Navy intranet, secondly "to achieve a negotiated settlement with our other critical-focus account" and finally gaining new business from a new sales strategy was beginning to pay off. EDS expects restructuring to deliver $1bn in cost savings this year.

EDS forecasts sales of $20bn to $21bn for the full year. ®

Related stories

UK gov holds EDS to account over crap CSA system
EDS to sell software unit for $2.1bn
EDS to sue NHS over nixed email deal

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.