EDS profits triple to US$107m

2 Aug 200655 Views

Despite reporting a modest 5pc increase in revenues to US$5.2bn, Ross Perot’s Texan technology services giant EDS this morning reported second-quarter net income of US$107m, more than triple the US$27m profit reported during the same quarter last year.

The company, which employs 400 people in Ireland, signed US$5.4bn in contracts in the second quarter, up 103pc from US$2.6bn a year ago.

The company also acquired a majority stake in MphasiS BFL Ltd, a leading IT outsourcing company in Bangalore, India.

“EDS continued to drive operational and financial improvements in the second quarter,” said Mike Jordan, EDS chairman and chief executive officer.

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“Our bottom line benefited from the improved performance of some of our largest accounts and we expect our margins to continue to expand as we ramp up our productivity and Best Shore initiatives.

“Our more than US$15bn in first-half contract signings reflected EDS’s best six-month total since 2001. Importantly, this new business was balanced across industries, services lines and geographies and reflects an increasing number of new clients, putting EDS on a path to achieve solid growth,” Jordan said.

EDS signed US$5.4bn in contracts in the second quarter, up 103pc from US$2.6bn in the year-ago quarter. Significant contracts for the quarter include Kraft Foods Inc (a US$1.6bn new logo) and wins with existing clients Bank of America (US$700m) and the Commonwealth Bank of Australia (US$350m).

By John Kennedy