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Technology Stocks : EDS - Recent pullback a buy opportunity??? -- Ignore unavailable to you. Want to Upgrade?

To: Daniel G. DeBusschere who wrote (1351)	2/5/1999 2:42:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 1841

EDS In Deal With MCI WorldCom; Also Reports Earnings Information Week Friday, February 5, 1999 Presiding over his first financial-report briefing yesterday, Dick Brown, the new chairman and CEO at EDS, was quick to note, "I was not here in 1998." Revenue for the fourth quarter would have been $4.6 billion but for a $200 million adjustment to revenue to account for a lawsuit filed in December against Xerox Corp. for non- payment of "certain infrastructure services" and for another, unnamed contract in difficulty. The $4.4 billion in fourth-quarter revenue following the adjustment was 4% greater than the same quarter a year ago; net income for the quarter after adjustments and charges was $142 million, compared with $283 million a year ago. Operating margins for the quarter were 8.9%, down from 11.1% a year ago. Revenue for the year was up 11% from 1997 to $16.9 billion, with net income of $743.4 million compared with 1997 net income of $730.6 million. Rumors of long-standing friction between EDS and Xerox were borne out by the disclosure of the lawsuit, filed in a New York State Court. Details of the suit are sealed by a confidentiality agreement. EDS said only that the dispute had not been resolved after more than a year of negotiations. Xerox awarded EDS a $3.2 billion outsourcing contract in 1994. Brown would not comment on reports, confirmed by sources close to the negotiations, that EDS and MCI WorldCom are near agreement on a three-part deal that involves the sale of MCI Systemhouse to EDS for nearly $2 billion, the award of a comprehensive contract for computer services outsourcing by MCI WorldCom to EDS, and network services. -- Bruce Caldwell informationweek.com