Feeds

Cuts help EDS

Corporate coppicing lets green shoots breathe

Secure remote control for conventional and virtual desktops

Job cuts have helped double profits at IT services giant EDS during a quarter of stagnant revenues.

EDS chairman and CEO Mike Jordan said dealing with "legacy overhangs" had contributed to the rise in profits.

Profit in the fourth quarter was $112m, contributing to most of what it earned in the year. Profits were down on the year by $8m to $150m. Little difference in sales was reported on either the year or the quarter. But the company signed contracts worth $1.5bn more than in the same 2004 quarter, totalling £5.3bn.

Jordan was pleased the firm retained its most important customer in a bid dubbed the "landmark GM recompete", though it had brought in 10 per cent less revenue in the last quarter than the year before.

Chief financial officer Bob Swan said he was going to "drive leverage" in 2006 as a way of bringing about even higher profits.

A UK Ministry of Defence contract brought EDS revenue increases of three per cent in the last quarter, but was won in early 2005 only after "investments" that dragged European profits down by 8 per cent.

Most of EDS' margin increases came from the US, where it drew 69 per cent more profit from government business.®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?