EDS strong in earnings, contracts
- By Paula Shaki Trimble
- Feb 08, 2001
Electronic Data Systems Corp., which holds the largest government information outsourcing pact, announced Wednesday that it achieved better-than-expected financial results for the fourth quarter of 2000 and for the full year.
EDS had revenues of $5.2 billion for the fourth quarter of 2000, which ended Dec. 31 — a 6 percent increase over its $4.9 billion in revenues in the fourth quarter of 1999. Total revenues for the year were $19.2 billion, 3 percent more than the $18.7 billion in revenues in 1999.
The company also reported $15.8 billion in contract signings for the quarter and $32.6 billion in contract signings for the year, including the $6.2 billion Navy Marine Corps Intranet win last fall.
Because the contract did not ramp up until late in the year, EDS chairman and chief executive officer Dick Brown said NMCI produced less than $10 million in revenue and no profit. He added that the company is on target, and that is how the contract was budgeted.
About 14 percent of EDS' revenue comes from its work with governments around the world. Revenue from government work increased 34 percent in the fourth quarter of 2000 compared with the same period in 1999, Brown said.