EDS reports third-quarter gains

CMS awards EDS a $41M task order

Related Links

EDS reported third-quarter 2006 adjusted net income of $128 million, or 24 cents per share. That was up from the third-quarter 2005 adjusted net income of $70 million, or 13 cents per share.

EDS said in a statement that the adjusted net income and earnings per share include the effect of expensing stock options and performance-based restricted stock units.

The company said third-quarter revenue was $5.29 billion, an increase of 9 percent, or 6 percent on an organic basis, which excludes the impact of currency fluctuations, acquisitions and divestitures, from $4.87 billion in third-quarter 2005.

The Plano, Texas-based integrator said it signed $3.5 billion in contracts in the third quarter of 2006, compared with $5.3 billion in the same quarter a year ago. They included contracts with Delphi, Visanet, Dollar Thrifty Automotive Group, the Centers for Medicare and Medicaid Services, and the Army. For the first nine months of 2006, contract signings totaled about $18.9 billion, a 28 percent increase over the year-ago period, the company said.

“EDS posted another solid quarter reflecting improved execution on contracts, increased productivity and better management of overhead costs,” said Mike Jordan, EDS chairman and chief executive officer, in the announcement. “We are confident in our ability to deliver on full-year 2006 guidance, and investments in our technology platform and Best Shore capabilities position us well for 2007.”

EDS’ third-quarter 2006 operating margin was 4 percent on an adjusted basis, compared with 2.4 percent in the year-ago quarter.

“In the third quarter, we achieved continued year-over-year improvement in operating margin, while maintaining an aggressive level of investments aimed at improving our future cost structure and providing competitive market offerings,” said Ron Vargo, EDS’ chief financial officer.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

The Fed 100

Save the date for 28th annual Federal 100 Awards Gala.

Featured

  • Social network, census

    5 predictions for federal IT in 2017

    As the Trump team takes control, here's what the tech community can expect.

  • Rep. Gerald Connolly

    Connolly warns on workforce changes

    The ranking member of the House Oversight Committee's Government Operations panel warns that Congress will look to legislate changes to the federal workforce.

  • President Donald J. Trump delivers his inaugural address

    How will Trump lead on tech?

    The businessman turned reality star turned U.S. president clearly has mastered Twitter, but what will his administration mean for broader technology issues?

  • Login.gov moving ahead

    The bid to establish a single login for accessing government services is moving again on the last full day of the Obama presidency.

  • Shutterstock image (by Jirsak): customer care, relationship management, and leadership concept.

    Obama wraps up security clearance reforms

    In a last-minute executive order, President Obama institutes structural reforms to the security clearance process designed to create a more unified system across government agencies.

  • Shutterstock image: breached lock.

    What cyber can learn from counterterrorism

    The U.S. has to look at its experience in developing post-9/11 counterterrorism policies to inform efforts to formalize cybersecurity policies, says a senior official.

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group