Fifth Straight Record-Breaking Quarter For EDS - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Fifth Straight Record-Breaking Quarter For EDS

Boosted by steady growth as a provider of E-business services, EDS (stock: EDS) last week posted first-quarter revenue of $4.5 billion, a 5% increase over $4.3 billion in the quarter a year earlier. First-quarter earnings per share were 47 cents, a 31% increase from 36 cents in 1999.

The uptick is likely to continue as EDS also disclosed $4.5 billion in new contracts, representing the fifth straight quarter of record signings and a 50% increase in signings from the same period last year. There were 847 contract signed in the first quarter, ended March 31, most notably in the company's group, which accounted for more than 300 new deals. Overall revenue for the group grew 35% from the first quarter of 1999, with the group's $500 million in contract signings accounting for more than 11% of total signings for the quarter.

EDS plans to prune less-productive areas of its business, continuing an aggressive cost-cutting and restructuring plan begun last year, says Dick Brown, EDS chairman and CEO. "We will grow, but not at any cost," he says. "We will meet our goals for revenue growth this year."

Brown also points out that EDS's success in the first quarter came without the benefit of a megadeal, such as the $6.4 billion contract the company signed with MCI WorldCom during the fourth quarter of 1999. According to Gary Helmig, a managing director for Wit SoundView Financial Group, this means that EDS is likely to surpass last year's earnings.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Twitter Feed
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.
Sponsored Video
Flash Poll