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New Contracts Lift Results at Electronic Data

THE NEW YORK TIMES: New Contracts Lift Results at Electronic Data

Published: April 25, 2008

DALLAS (AP) — The information technology services company Electronic Data Systems Corporation posted better-than-expected first-quarter profit and sales Thursday, driven by its best quarter for new contracts since 2002.

Results beat analysts’ expectations that were lowered after the company issued a warning in February, and its stock rose $1.53, or 8 percent, to $19.96 a share.

Electronic Data, which is based in Plano, Tex., said it earned $62 million, or 12 cents a share, down from $164 million, or 31 cents a share, a year earlier. The 2007 period included a one-time gain of $100 million related to a contract termination fee from Verizon Communications.

Sales climbed 3 percent to $5.37 billion from $5.22 billion.

Analysts, on average, had expected a profit of 5 cents a share on sales of $5.21 billion, according to a survey by Thomson Financial.

”E.D.S.’ first quarter contract signings performance was exceptional, particularly in light of uncertain global economic conditions,” Ron Rittenmeyer, Electronic Data’s chief executive, said in a statement. ”E.D.S. also got off to a strong start operationally with both earnings per share and revenue exceeding our previous guidance.”

The company signed $5.6 billion in contracts in the first quarter, up 66 percent from $3.4 billion in the comparable period last year. Contracts included 12 that were worth $100 million or more, the most in any quarter since 2002.

The biggest was a new $1 billion deal with Royal Dutch Shell, in which Electronic Data will manage 150,000 computer users in more than 100 countries.

Mr. Rittenmeyer said the company had secured a $1 billion government contract that would close in the second quarter but he would not discuss specifics.

”All in all, I’d say we’re very pleased with the level of signings,” Mr. Rittenmeyer said in a conference call with analysts. and its also non-profit sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

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