WorldCom's tendrils pulled down EDS's second-quarter numbers in the form of a $101 million reserve the service provider had to set aside to cover money it's owed by the telecom vendor. Even so, EDS reported net income of $316 million on $5.5 billion in revenue for the quarter ended June 30, compared with $300 million in net income on revenue of $5.1 billion in the year-ago quarter.
The value of EDS's signed contracts decreased to $6.2 billion this quarter from $7 billion in the second quarter of 2001. But chairman and CEO Dick Brown says contracts are being delayed, not canceled.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.