Strategic CIO // IT Strategy
Commentary
10/27/2004
04:44 PM
Paul McDougall
Paul McDougall
Commentary
Connect Directly
RSS
E-Mail
50%
50%

EDS Takes Another Hit

On Monday, EDS said it would delay its third quarter earnings announcement until November 3rd. It seems the company is mulling whether to write down some assets related to its NMCI Intranet contract.

On Monday, EDS said it would delay its third quarter earnings announcement until November 3rd. It seems the company is mulling whether to write down some assets related to its NMCI Intranet contract.Analysts are mixed on how big a financial hit EDS may take--one Wall Streeter thinks they may have to acknowledge that the NMCI deal may never be profitable. The real upshot, others say, is that it's another message to investors and IT services buyers that EDS' house is not yet fully in order. Former CBS chief Micheal Jordan has been on board for about 18 months, and some wonder how long he needs--or will get--to turn things around. EDS did get a nod of approval from investors this week--when it announced plans to reduce U.S. headcount by 9,200 through a buyout program . The Street likes its companies lean and mean so news of the Comprehensive Workforce Management Initiative, as EDS, calls it, gave the stock a bit of a lift.

Comment  | 
Print  | 
More Insights
Transformative CIOs Organize for Success
Transformative CIOs Organize for Success
Trying to meet today’s business technology needs with yesterday’s IT organizational structure is like driving a Model T at the Indy 500. Time for a reset.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Must Reads Oct. 21, 2014
InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and community news at InformationWeek.com.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.