Feeds

EDS moves to profit in Q1

Only just...

  • alert
  • submit to reddit

Build a business case: developing custom apps

EDS has beaten expectations for the first quarter ended 31 March 2005 with a profit of $4m compared with a loss of $12m in the same period a year ago.

The outsourcing giant brought in revenues of $4.94bn in the three months, five per cent down on last year but at the high end of expectations. Revenue from General Motors, EDS’s largest commercial client, was down eight per cent; non-GM revenues were down five per cent.

The firm signed deals worth $7.1bn in the quarter, up from $3.8bn a year ago. This was bolstered by the $3.85bn contract signed with the UK Ministry of Defence. Bob Swan, EDS chief financial officer, said the MoD deal would allow EDS to show the lessons learned from the disastrous Navy Marine Corps Intranet(NMCI) contract, which made a loss of $57m in the quarter on revenue of $166m, down 27 per cent on last year.

In the Americas revenue fell three per cent on last year to $2.1bn.

Revenues in Europe, Middle East and Africa fell 12 per cent to $1.5bn - mainly because of the end of the Inland Revenue contract. Asia saw revenues fell two per cent to $303m.

For Q2 EDS expects revenue in the range $5.0bn and $5.2bn and to make a pro forma loss of between two and seven cents per share. For the whole year EDS expects revenue of between $20bn and $21bn and earnings per share between 40 and 50 cents. ®

Related stories

Government IT contracts can make you cry: official
EDS to UK gov - give us our £13m
EDS wins £4bn MoD contract

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.