Perot Systems Swings To Loss After Accounting Change
The change turned 14-cents-a-share profit to an 11-cent-a-share loss.
Perot Systems Corp. says its first-quarter revenue rose 4%, to $338 million, compared with the same period last year. But the company posted a loss of $12.7 million, or 11 cents per share, due to a change in the way it records income from contracts. Perot Systems says it would have posted a profit of 14 cents per share without the change.
The company reported $752 million in new contracts during the period, though revenue from its commercial outsourcing business fell 7% from the previous year.
Perot Systems says it expects second-quarter revenue, which will include sales from recently acquired federal services contractor Soza and Co., to grow 6% to 9%, coming in at $353 million to $363 million. Earnings are expected to fall between 12 and 14 cents per share. In a statement, company president and CEO Ross Perot Jr. blamed the shortfall on "broad economic weakness."
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.
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.