NMCI delays EDS earnings again
- By Bob Brewin
- Nov 02, 2004
EDS officials delayed releasing the company's earnings report for the second time in two weeks pending completion of a previously announced evaluation of EDS' Navy Marine Corps Intranet contract by an outside auditor and company officials.
Company officials said in a statement today that auditors at KPMG Consulting Inc. still have not completed their evaluation of the timing and amount of the writedown of assets related to NMCI, causing a delay in the release of the company's earnings report for the third quarter, which ended Sept. 30. EDS officials gave the same reason for the initial delay of earnings, which were originally scheduled for release Oct. 27.
According to EDS' statement, KPMG auditors also said EDS officials must resolve certain issues related to quarterly bonus plan accruals in 2003 and 2004, which could result in revisions to quarterly earnings statements for 2003, but not the financial results for the full year.
EDS has about $775 million in assets tied up in NMCI and officials said in the company's earning report for the first half of the year that those assets could be significantly impaired if connections to NMCI fall below expectations, the system fails a Navy operational evaluation or EDS cannot satisfactorily resolve cost reimbursement and service-level issues with the Navy.