EDS Records 3Q Loss - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
News
10/31/2003
06:20 PM
50%
50%

EDS Records 3Q Loss

EDS, which last week posted a $600,000 loss for the third quarter, has switched from an accounting method in which it records revenue based on how much work it has completed on a contract to one that acknowledges only what a customer has actually paid. It's a more conservative approach, but some investment experts say the change has made it tough to get a handle on the company's results.

John Jones, who watches EDS for Soundview Research, says the accounting switch "clouds interpretation, but not enough to obscure that it's taking longer than hoped to drive improvements." Problem contracts such as the Navy/Marine Corps intranet, along with a low number of new bookings, are dragging down EDS's financial performance, he says.

EDS reported net income, excluding onetime charges, of $26 million, or 5 cents per share, for the quarter ended Sept. 30. Including the charges, it lost $600,000. Revenue rose 6% to $5.2 billion. A year ago, under the old accounting system, EDS posted net income of $86 million, or 18 cents per share. EDS says it would have posted a loss of $88 million in that period if the new accounting rule had been in effect. New contract signings for the quarter totaled $3.4 billion, compared with $3 billion a year ago.

Looking ahead, EDS says it's on track to meet its second-half earnings guidance of 17 cents per share. That has some analysts positive on the stock. Says American Technology Research analyst David Garrity, "There's a lot of hidden value in EDS."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
News
Northwestern Mutual CIO: Riding Out the Pandemic
Jessica Davis, Senior Editor, Enterprise Apps,  10/7/2020
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll