Perot Systems Posts 19% 4Q Sales Gain

IT services firm Perot Systems reported Tuesday that fourth-quarter revenue increased 19% to $393 million, up from $330 million during the same period a year ago. It attributed the increased sales to strong sales to the government and commercial outsourcing markets.

However, net income declined 18% year over year--or 50% when the effect of an accounting change is included. Excluding the change, net income in the fourth quarter ended Dec. 31 was $16.3 million, or 14 cents per share, compared with $19.9 million, or 17 cents per share, a year ago. The company blamed the decline on increased costs associated with acquisitions.

Fourth-quarter sales to the government increased 204% year over year to $57.5 million, due mainly to additional revenue created by Perot Systems' February 2003 acquisition of consulting firm Soza & Co. Commercial IT outsourcing sales increased 9% to $322 million while business consulting revenue fell 8% to $14 million.