This does not look like a real good earnings report to me. Any comments.
Dan
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EDS Posts Q1 Loss After Restructuring
PLANO, Texas (Reuters) - Computer services company Electronic Data Systems Corp (NYSE:EDS - news) Thursday posted a first quarter loss of $20.6 million or a diluted $0.04 per share after special charges linked to restructuring.
EDS said that before the one-time costs, first quarter results were a net profit of $181.8 million or $0.36 per share, matching Wall Street expectations. In the year-ago quarter, EDS posted a net profit of $184.2 million or a diluted $0.37 per share.
EDS's new chairman and chief executive Dick Brown, who took over in January, said he expected 1999 to be a year of transition as it restructures and cuts costs in a bid to boost sales and profitability.
EDS, the world's second largest provider of computer services after IBM, also announced new contract signings in the first quarter totaling $3.0 billion.
''While results for the first quarter were as expected, we have established the momentum for cost-cutting and growth-enhancing changes at EDS,'' Brown said in a statement.
''We expect this to be a year of transformation for EDS and plan to regain our core market position as a result of the changes we are making. We have the basic elements for success -- a strong balance sheet, positive cash flows, a robust and growing marketplace, and a strong customer base.''
New contracts signed in the first quarter included 39 deals valued at greater than $10.0 million each, among them two large international agreements, with Italian energy company ENI for about $500 million and with the Australian Taxation Office (ATO) for approximately $300 million.
EDS shares closed just before the first quarter announcement at $51.31, down $1.81 from the previous day's close.
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