EDS biz is growing. They own 20% or so of HDS and HDS sent a ton
of people to the last SNIA meeting.
EDS Reports Higher Third-Quarter Revenues,
Continued Strong Sales
PLANO, Texas-EDS today announced that operating revenues for the
three months ended September 30, 1998, were 17% higher than 1997
third-quarter levels. Diluted earnings per share for the third quarter were
$0.44 compared with $0.50 in the third quarter last year, prior to pre-tax
charges of $36.7 million and $25.9 million, respectively.
Operating revenues for the third quarter of 1998 were $4.4 billion, and
included $69 million, or $0.09 per share, related to the sale of a portion
of the Company's leasing portfolio. In the third quarter of last year,
operating revenues were $3.7 billion.
Net income for the third quarter of 1998 was $218.6 million, excluding a
pre-tax charge of $36.7 million, or $0.05 per share, related to the
previously announced retirement of Chairman and Chief Executive
Officer Les Alberthal. Net income for the corresponding period in 1997
was $246.8 million prior to a pre-tax charge of $25.9 million. Including
these charges, net income for the third quarter of 1998 was $195.1
million, or $0.39 per share on a diluted basis, compared with $230.2
million, or $0.47 per share on a diluted basis, for the same quarter last
year. As expected, the decline in net income in the third quarter of 1998
was caused predominately by the reduced profitability on contracts with
GM, the company's largest client.
"Third-quarter results indicate that our base business continues to grow
as expected (non-GM revenue increased by 24% during the quarter over
the third quarter of 1997) as client demand for our wide portfolio of
professional services increases," said Alberthal.
"For example, EDS expanded its industry leadership in the Year 2000
market by debuting Vendor 2000, the world's largest database detailing
compliance information. Vendor 2000 details thousands of hardware and
software components' progress toward compliance, and is available for
business, government and individual clients to check the status of their
equipment.
"In efforts to take customer service to the highest level, EDS' also
introduced another powerful addition to its Electronic Business initiatives
by launching Interactive Billing (iBilling) Services, completely changing the
way businesses and consumers receive and pay bills. iBilling is the first
totally paper-less, on-line service in the emerging Internet markets of
electronic bill presentment.
"Capitalizing on this strong market environment with high-quality
contracts and diverse business offerings across industries and
geographies is key to our future growth," Alberthal added.
EDS signed approximately $2.8 billion in new business in the third
quarter, including an agreement with London Transport to create a
completely new approach to generating and managing ticketing revenues,
giving London the most advanced public transport ticketing system in the
world. EDS also signed a contract with Toyota Motor Sales, U.S.A. Inc.
Under the terms of that contract, EDS will develop an electronic parts
catalog system for Toyota and Lexus dealers to use to order new or
replacement parts for mechanics and customers.
EDS, the official information technology services provider for World Cup
1998, is a leader in the global information services industry. The
company's more than 110,000 employees specialize in applying a range
of ideas and technologies to help business and government clients
improve their economics, products, services and relationships. EDS,
which serves clients in 45 countries, reported revenues of $15.2 billion in
1997. The company's stock is traded on the New York Stock Exchange
(NYSE:EDS) and the London Stock Exchange. Visit EDS via the
Internet at eds.com. |
