EDS Postpones 3Q ResultsEDS Postpones 3Q Results
The IT services and consulting firm says auditors need more time to review the effects of new accounting procedures.
October 22, 2003
PLANO, Texas (AP) -- Electronic Data Systems Corp. postponed the release of its third-quarter financial results, saying auditors needed more time to review the cumulative effect of new accounting policies.
The company said Wednesday that it expects to meet the consensus forecast of analysts for earnings of 32 cents per share, excluding restructuring charges and gains from divestitures, when it releases earnings Oct. 29. The new accounting methods, however, will reduce earnings by 65 percent to 75 percent in the second half of the year, EDS said. EDS, which operates computer systems for corporate and government customers, made the announcement Wednesday just hours before it was scheduled to release earnings for the July-September period. Plano-based EDS had previously announced it was adopting new accounting policies on a retroactive basis. The company said its auditors requested clarification on its use of the new policies from the Securities and Exchange Commission and received the SEC's reply late last week. EDS typically installs equipment for a new customer, then gets regular payments for its technology services. Earlier this year, an accounting-industry group recommended changes in the accounting of revenue for such ongoing accounts.
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