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."
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