Delays and cost overruns associated with its build-out of a massive intranet for the Navy and the Marine Corps helped push EDS to a loss of $126 million for its first quarter ended March 31. A year ago, EDS posted net income of $354 million. Revenue grew 2% year over year to $5.4 billion.
Despite problems with the $6 billion intranet project, the services firm says it still believes the contract will ultimately produce more than $1.9 billion in cash flow from 2004 onward.
EDS says a $48 million pretax charge to cover severance payments to outgoing CEO Richard Brown also contributed to the loss.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.