Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: J Fieb who wrote (2941)	4/2/2001 12:44:50 PM
From: J Fieb	Read Replies (1) \| Respond to of 4808

EDS in Europe.... EDS to Acquire Germany's Systematics As Part of Expansion Effort in Europe A WSJ.com News Roundup PLANO, Texas -- Electronic Data Systems Corp. on Monday announced a deal to buy fast-growing German computer-services company Systematics AG for about $570 million in cash and stock, in an effort to expand in continental Europe. It marks the second acquisition in less than a month for EDS Chief Executive Richard Brown, an active deal maker at his previous job at the helm of London's Cable & Wireless PLC. On March 15, the Plano, Texas, computer-services company said it agreed to buy most of Sabre Holdings Corp.'s outsourcing operations for $670 million. EDS said Monday it will pay about $430 million in cash and issue $140 million in stock to acquire all outstanding Systematics shares. EDS agreed with certain Systematics shareholders to acquire about 70% of the outstanding shares for $395 million, at $27 a share. EDS plans to launch on or before April 9 an all-cash tender offer for the remaining publicly held shares for $175 million, or $31 a share. EDS expects the transaction, scheduled to close around mid-year, to be neutral to 2001 earnings but add to 2002 earnings. Systematics, based in Hamburg, is a 16-year-old information-technology outsourcing and consulting company that is tripling annual revenue, largely through its acquisition of MSH International Service AG, Frankfurt, last April. Systematics reported net income of 123,000 euros ($107,994), or 1 European cent a share, on sales of 433 million euros during the first nine months of last year. That compares with net income of 6.7 million euros, or 52 European cents a share, on sales of 193 million euros, a year earlier. Excluding the MSH acquisition, Systematics still increased sales at a 95% annual clip during the first nine months of last year. Systematics' work force stood at 2,720 employees at the end of September, up from only 512 a year earlier. EDS, with $19.2 billion in revenue last year and 122,000 employees, plans to keep all Systematics employees, including management. As of 4 p.m. Friday in New York Stock Exchange composite trading, EDS shares were at $55.86, up $1.56. Systematics is expected to double EDS sales in Germany, where it has had little presence. EDS gets about one-quarter of its sales in Europe, but about half of that comes from the United Kingdom. Systematics has 66 offices in Europe, including 38 in Germany. Wall Street Journal staff reporter Elliot Spagat contributed to this article. More WSJ.com Highlights

To: J Fieb who wrote (2941)	4/27/2001 8:04:02 AM
From: J Fieb	Read Replies (1) \| Respond to of 4808

EDS says "What slowdown?" EDS Net Rises 54% on One-Time Gains; Firm Sees No Sign of Industry Slowdown By Elliot Spagat Staff Reporter of The Wall Street Journal Electronic Data Systems Corp.'s first-quarter net income climbed 54% on one-time gains and the computer-services concern said it doesn't see signs of an industry slowdown. EDS earned $446.1 million, or 93 cents a diluted share, up from $288.9 million, or 60 cents a share, in the year-earlier quarter. The 2001 figure includes a $315.5 million gain for an accounting change on equity investments, a $97.6 million gain for asset sales, and a $23.9 million charge for an accounting change on investments made prior to this year. Excluding one-time items, EDS, Plano, Texas, earned 56 cents a diluted share, in line with analyst estimates as surveyed by Thomson Financial/First Call and up from 47 cents a diluted share last year. Revenue grew 9% to $4.99 billion from $4.58 billion. The company signed new contracts valued at $7.5 billion in the quarter, up from $4.5 billion in the year-earlier period, keeping its backlog above $80 billion. In tough economic times, companies such as EDS tend to do well, said Richard H. Brown, EDS chairman and chief executive officer. That is because it can offer cost-and-labor savings for running essential computer and other operations. EDS's pipeline of potential contracts surged, which Mr. Brown says "gives us great confidence that the business is there to get in the future." Mr. Brown reaffirmed his target of a 10% operating profit margin this year. The operating margin for the first quarter was 8.9%, down from what he called a seasonally high 10.5% in the fourth quarter, but up from 8.2% in the year-earlier period. EDS stuck with its financial projections as a slew of technology companies warned of weaker results, including rival Computer Sciences Corp., El Segundo, Calif. EDS has little exposure to high-end consulting services, which tend to suffer in a slowing economy. Revenue in EDS's A.T. Kearney consulting business was flat. EDS's growth was fueled by its core information-solutions unit, which runs computer systems for corporations, and whose revenue rose 20%, excluding business from former parent company General Motors Corp., Detroit. As of 4 p.m. in New York Stock Exchange composite trading Wednesday, before results were released, EDS shares slipped 28 cents to $63.27. The share price had rallied from a 52-week low of $38.38 on June 22, 2000, as investors have embraced Mr. Brown's efforts to turn around what was considered a flailing company. Mr. Brown, former head of London's Cable & Wireless PLC, has slashed EDS's work force, replaced most top executives, and reorganized the company from 48 business units into four since he joined EDS in 1999. Write to Elliot Spagat at elliot.spagat@wsj.com