Feeds

EDS delivers Q2 jam, much more to come

Contract signings slip

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

Electronic Data Systems gave its investors some good news for a change when it reported second quarter figures at the top end of estimates yesterday and forecast 2006 earnings well above analyst’s forecasts.

However, it also revealed a big drop in second quarter contract signings from last year’s $4bn to $2.8bn this year. It said it was still on target to pull in $20bn of new business this year.

Revenues in the quarter ending 30 June were $5.2bn, down 1 per cent on the year. Net income was $26m, or five cents a share, compared to $270m, or 54 cents a share, last year. On a pro forma basis, earnings were $45m, or nine cents a share. Wall St had expected the firm to lose four cents per share.

Revenues were flat in the Americas, rose 11 per cent in Asia but were down 11 percent in EMEA. The firm has had a pretty horrible time in the UK this year, with continued spats with the UK government over contract screwups.

EDS said yesterday it had “confirmed” its 2005 guidance, which calls for revenues of $20bn to $21bn, and pro forma eps of 50 to 60 cents. Analysts currently expect 42 cents per share.

In 2006, it expects pro forma earnings per share of $1, well up on the 66 cents analysts currently expect.

Related stories

Redundant EDSers threaten legal action
UK Inland Revenue may sue EDS
EDS tax fiasco hit with two barrels
EDS UK cuts jobs
EDS moves to profit in Q1

Mobile application security vulnerability report

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
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
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
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
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.