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EDS REVENUES RISE 24 PERCENT IN FIRST QUARTER

 EDS REVENUES RISE 24 PERCENT IN FIRST QUARTER
 DALLAS, April 27 /PRNewswire/ -- EDS registered a 24-percent


increase in total revenues in the first quarter and signed major new business during the period, the global information technology company announced today.
 EDS said that revenues were $1.995 billion in the quarter ended March 31, 1992, an increase of $386 million over the $1.609 billion recorded during the corresponding period a year ago. First-quarter net income rose $26.8 million from $106.3 million in 1991 to $133.1 million this year -- after restating first quarter 1991 net income to reflect a new accounting standard related to income taxes issued by the Financial Accounting Standards Board. Without the accounting change, net income was up 9 percent -- from $121.8 million in 1991.
 The earnings of EDS (Electronic Data Systems Corporation), a wholly owned subsidiary of General Motors Corporation (NYSE: GM), are used to calculate the earnings per share of General Motors Class E common stock (NYSE: GME). Earnings per share increased in the first quarter, from $0.22 a year ago to $0.28 in 1992 -- after restating for the accounting change. Without the accounting change, earnings per share increased 12 percent, from $0.25 a year ago to $0.28 in 1992. (On Feb. 3, 1992, the GM Board of Directors declared a 2-for-1 split in the GME stock, which was distributed March 10, 1992, to stockholders of record on Feb. 14, 1992. All per-share data are presented here on a post-split basis.)
 "EDS saw a surge in new business during the first quarter as the movement toward outsourcing continued to change the way the world does business," said Les Alberthal, EDS chairman, president and CEO. "EDS' ability to combine technology with viable business solutions enables our customers to access a world of information from virtually any desktop around the globe."
 EDS is based in the United States, employs more than 70,000 people and has operations in 30 countries.
 The first quarter was highlighted by the signing of three megacontracts:
 First, EDS was awarded its largest contract ever in the health and benefits arena -- by Blue Cross/Blue Shield of Massachusetts, the fourth largest Blue Cross/Blue Shield plan in the U.S. Under the 10-year, systems-management agreement, EDS is assuming responsibility for all information technology (IT) services at Blue Cross/Blue Shield of Massachusetts, with which EDS has had a 20-year relationship.
 Second, EDS won a five-year, systems-management agreement (with five additional one-year options) to provide complete IT services to the Federal Aviation Administration (FAA). The FAA controls both operating and administrative procedures that affect the safety, performance and efficiency of U.S. aviation worldwide.
 Third, EDS was granted an eight-and-a-half-year, systems- management agreement (with a five-year option) by San Diego-based Postal Buddy Corp., an authorized agent of the U.S. Postal Service. Under the agreement, EDS will help develop, install and operate 10,000 automated self-service kiosks offering a variety of postal-related products and services and will assist in the development of a toll-free customer- assistance center.
 Also during the first quarter, EDS signed a 10-year, systems- management agreement with Days Inn of America, the third-largest hotel chain in the U.S. Days Inn's information system will be converted to the reservations system being developed by EDS for Hospitality Franchise Systems (HFS), which operates the Ramada and Howard Johnson hotel chains and which recently acquired Days Inn.
 In the communications arena, EDS was awarded systems-management contracts by LDDS Communications, Inc., one of the largest interexchange carriers in the U.S., and by Bell Atlantic Business System Services, a subsidiary of Bell Atlantic Corporation. EDS will assume responsibility for LDDS' customer-related system and will consolidate the platforms into a single customer-management information system. Under the agreement with Bell Atlantic Business System Services, EDS will provide computing and processing operations -- including dispatch, customer information and billing, and parts inventory and management.
 EDS enhanced its position in the energy industry during the first quarter with the acquisition of Atlanta-based Energy Management Associates, Inc. (EMA). EMA provides planning software and regulatory and management consulting to the electric and gas utilities industry. EMA customers represent more than 90 percent of the U.S. energy- generating capacity.
 In the international arena, Polska Telefonia Komorkowa, the consortium responsible for building Poland's national cellular network, selected EDS to provide the information-management and billing system for the project.
 EDS, meanwhile, acquired a 19.9-percent equity interest in Japan Systems K.K., a publicly held corporation providing systems integration, software development, communications systems and hardware to the Japanese market. The company serves customers in a wide variety of industries, including manufacturing, utility, telecommunications and financial, as well as government.
 In Singapore, EDS signed a license agreement with Singapore Cablevision Pte., Ltd. (SCV), a subsidiary of the Singapore Broadcasting Corporation. Under the agreement, EDS will install a cable TV, subscriber-management system and provide customer-service training and system maintenance.
 In the United Kingdom, EDS' newly acquired company, SD-Scicon, signed a contract to supply a turnkey maintenance-management system for British Nuclear Fuels Ltd., (BNFL). BNFL produces fuel for all UK nuclear power stations and is one of the world's leading suppliers of uranium fuel for generating electricity. SD-Scicon also signed an agreement to provide systems-management support to Pilkington Plc., one of the world's leading glass producers for the building, aeronautics, electronics and automotive industries.
 In continued support of its parent and largest customer, General Motors Corporation, EDS signed a four-year contract to provide an electronic payment system called EDSEFT. When fully implemented, the system will process supplier payments for GM, reduce costs, improve cash management and facilitate interaction with suppliers. Also in the first quarter, EDS implemented the Wiper Design System (WIDS) for GM's Delco Chassis Division. The system enables engineers to design windshield wiper systems 90 percent faster than with the previous manual design process. WIDS reduces initial design time for Delco Chassis wiper systems from 10 days to one and has reduced the total average design time from 60 days to six days.
 ELECTRONIC DATA SYSTEMS CORPORATION
 SUMMARY OF RESULTS OF OPERATIONS
 (in millions except per-share amounts)
 Three Months Ended
 March 31,
 1992 1991
 Revenues
 Systems and other contracts $1,980.6 $1,578.1
 Interest and other income 14.4 30.9
 Total revenues 1,995.0 1,609.0
 Total costs and expenses 1,783.7 1,415.6
 Income before income taxes 211.3 193.4
 Provision for income taxes 78.2 71.6
 Separate consolidated net income
 before cumulative effect of
 accounting change 133.1 121.8
 Cumulative effect of accounting
 change --- (15.5)
 Separate consolidated net income $ 133.1 $ 106.3
 Earnings attributable to GM Class E
 Common Stock on a per-share basis
 before cumulative effect of
 accounting change $0.28 $0.25
 Cumulative effect of accounting
 change --- (0.03)
 Earnings attributable to GM Class E
 Common Stock on a per-share basis $0.28 $0.22
 Cash dividends per share of
 GM Class E Common Stock $0.09 $0.08
 Revenues related to GM and subsidiaries amounted to $818.1 million and $804.9 million for the three months ended March 31, 1992, and 1991, respectively.
 SUMMARY OF CONSOLIDATED BALANCE SHEETS
 (in millions)
 March 31, Dec. 31,
 ASSETS 1992 1991
 Current Assets
 Cash and marketable securities $ 408.0 $ 415.8
 Accounts receivable 1,259.4 1,283.0
 Inventories 99.5 66.9
 Prepaids and other 235.7 179.9
 Total current assets 2,002.6 1,945.6
 Property and equipment, net 1,580.0 1,551.6
 Operating and other assets 2,230.2 2,206.0
 Total assets $5,812.8 $5,703.2
 LIABILITIES AND STOCKHOLDER'S EQUITY
 Current Liabilities
 Accounts payable $ 284.9 $ 387.9
 Accrued liabilities 846.8 960.9
 Deferred revenue 295.9 299.2
 Income taxes 164.0 167.8
 Notes payable 769.6 564.9
 Advances from GM 11.2 16.0
 Total current liabilities 2,372.4 2,396.7
 Deferred income taxes 442.6 414.3
 Notes payable 286.8 275.9
 Advances from GM 4.0 6.0
 Total stockholder's equity 2,707.0 2,610.3
 Total liabilities
 and stockholder's equity $5,812.8 $5,703.2
 -0- 4/27/92
 /CONTACT: Jon Senderling of EDS, 214-661-6609/
 (GM) CO: Electronic Data Systems Corporation ST: Texas, Michigan IN: CPR AUT SU: ERN


KK-SM -- DE006 -- 3012 04/27/92 10:15 EDT
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