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EDS' REVENUES, NET INCOME RISE IN RECORD THIRD QUARTER

 EDS' REVENUES, NET INCOME RISE IN RECORD THIRD QUARTER
 DALLAS, Oct. 28 /PRNewswire/ -- Spurred by continued strong growth


in its non-General Motors business, EDS registered a 19 percent increase in revenues and a 15 percent rise in net income in the third quarter, the global information technology company announced today.
 EDS, which is based in the United States and has operations in more than 30 countries, said that for the quarter ended September 30, 1992, revenues rose $336 million to $2.06 billion, compared with $1.73 billion for the corresponding period a year ago. Third-quarter net income increased from $145.5 million in 1991 to a record $167.3 million this year, an increase of $21.8 million.
 The earnings of EDS (Electronic Data Systems Corporation), a wholly owned subsidiary of General Motors Corporation, are used to calculate the earnings per share of General Motors Class E common stock (NYSE symbol GME). Earnings per share increased $0.05 in the third quarter, from $0.30 a year ago to $0.35 in 1992, an increase of 17 percent.
 "EDS' continued growth during the third quarter was the result of our ability to deliver high-quality, measurable, results-oriented services to the global information-technology market," said Les Alberthal, EDS chairman, president and CEO. "As the leader in providing information technology, we are committed to continually enhancing both our high level of technical expertise and our knowledge of the many industries that we serve."
 The third quarter was highlighted by the awarding of a five-year, systems-development and maintenance agreement to EDS by Chicago-based Montgomery Ward, a $5.6 billion chain of 356 specialty stores. Under the agreement, EDS will assume full responsibility for developing and implementing fully integrated retail applications.
 EDS also was selected by the California Department of Health Services to serve as the state's technology partner for the Medi-Cal program.
 Medi-Cal is the largest Medicaid program in the nation, providing health care services to 4.9 million people at an annual cost of nearly $13 billion.
 Also in the third quarter, EDS reached an agreement with Northrop Corp. under which EDS will provide systems-management services for the Los Angeles-based aerospace company's configuration management, CAD/CAM and engineering design capabilities. EDS also will provide support for the sharing of information and processes among Northrop, McDonnell Aircraft, the U.S. Navy and other subcontractors.
 In the chemical industry, EDS was awarded a systems-management agreement with United States Borax and Chemical Corp. and its subsidiary, U.S. Silica Company. EDS will assume responsibility for all information-technology (IT) services and will develop the architecture for an anticipated transition to client/server technology.
 In the insurance arena, EDS signed an outsourcing agreement with Fremont Pacific Insurance Group, one of the top 20 providers of workers' compensation insurance in the United States. The agreement redefines and expands a contract signed last March.
 In the communications industry, EDS completed its acquisition of the assets of US TeleData, an affiliate of Advanced Telecommunications Corporation. The Atlanta-based company now provides operator and telemarketing services to a variety of industries under the name EDS Operator Services.
 In the energy industry, EDS and Enron Corporation, the leading natural gas company in the U.S., announced a modification of their existing IT agreement that will extend the strategic alliance between the two companies through the year 2001. The new arrangement will more closely integrate EDS into Enron's operating structure and improve the flexibility of both organizations to take advantage of evolving technology.
 In the international arena, EDS-Scicon brought on-line OVIDE (Organisation du Videotex du Depute Europeen), a European Community-wide computer network that will improve communications among members and staff of the European Parliament. OVIDE is a multi-lingual system designed to provide a range of videotex-based services, such as information about parliamentary proceedings and calendars, current issues, news bulletins and economic and structural statistics.
 EDS also was awarded a systems-management contract with CC-Banque, the Belgian subsidiary of Banco Santander, a major Spanish bank. The agreement with CC-Banque marks the first outsourcing contract ever in the Belgian banking community.
 In the financial industry, EDS signed an expanded agreement with Banc One Corp., of Columbus, Ohio, to provide conversion support for the institution's Bank One, Texas, subsidiary. Bank One, Texas, has been an EDS customer since 1989.
 And EDS won a systems-management agreement with United New Mexico Financial Corp., an Albuquerque-based bank holding company with $1.8 billion in assets. EDS will acquire the customer's data center and convert existing banks, as well as all future acquisitions, to EDS' integrated banking system.
 EDS also announced the signing of an agreement to provide extensive card-processing and network-communications services to Household Credit Services, Inc., and General Motors Corp. in support of GM's new multipurpose credit card. EDS services will include new account application processing and set up, transaction authorization, cardholder accounting, rebate-dollar calculation, customer-service help desk, statement rendering and collection-system support.
 SUMMARY OF RESULTS OF OPERATIONS
 (in millions, except per share amounts)
 Third Quarter Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 --------------------- -------------------
 Revenues
 Systems and
 other contracts $2,047.8 $1,697.0 $6,033.7 $4,941.6
 Interest and
 other income 14.2 29.0 40.6 71.5
 Total Revenues 2,062.0 1,726.0 6,074.3 5,013.1
 Total Costs
 and Expenses 1,800.8 1,495.0 5,352.4 4,366.8
 Income Before
 Income Taxes 261.2 231.0 721.9 646.3
 Provision for
 Income Taxes 93.9 85.5 264.4 239.2
 Separate Consolidated
 Net Income
 Before Cumulative
 Effect of Accounting
 Change 167.3 145.5 457.5 407.1
 Cumulative Effect
 of Accounting Change -- -- -- (15.5)
 Separate Consolidated
 Net Income $167.3 $145.5 $457.5 $391.6
 Earnings Attributable
 to GM Class E Common
 Stock on a Per Share
 Basis
 Before Cumulative Effect
 of Accounting
 Change $ 0.35 $ 0.30 $ 0.96 $ 0.84
 Cumulative Effect of
 Accounting Change -- -- -- (0.03)
 Earnings Attributable
 to GM Class E Common
 Stock on a Per
 Share Basis $ 0.35 $ 0.30 $ 0.96 $ 0.81
 Cash Dividends Per
 Share of GM Class
 E Common Stock $ 0.09 $ 0.08 $ 0.27 $ 0.24
 Revenues related to GM and subsidiaries amounted to $845.9 and $828.7 million for the third quarter ended September 30, 1992 and 1991, respectively, and $2,492.4 and $2,466.8 million for the nine months ended September 30, 1992 and 1991, respectively.
 SUMMARY OF CONSOLIDATED BALANCE SHEETS
 (in millions)
 Sept. 30, Dec. 31,
 ASSETS 1992 1991
 --------- ---------
 Current Assets
 Cash and marketable securities $ 551.1 $ 415.8
 Accounts receivable 1,209.5 1,283.0
 Inventories 106.8 66.9
 Prepaids and other 236.8 179.9
 Total Current Assets 2,104.2 1,945.6
 Property and Equipment, Net 1,673.2 1,551.6
 Operating and Other Assets 2,260.9 2,206.0
 Total Assets $6,038.3 $5,703.2
 LIABILITIES AND STOCKHOLDER'S EQUITY
 Current Liabilities
 Accounts payable $ 334.5 $ 387.9
 Accrued liabilities 932.6 960.9
 Deferred revenue 266.8 299.2
 Income taxes 108.2 167.8
 Notes payable 335.1 564.9
 Advances from GM 7.1 16.0
 Total Current Liabilities 1,984.3 2,396.7
 Deferred Income Taxes 501.6 414.3
 Notes Payable 570.2 275.9
 Advances from GM 1.3 6.0
 Total Stockholder's Equity 2,980.9 2,610.3
 Total Liabilities
 and Stockholder's Equity $6,038.3 $5,703.2
 -0- 10/28/92
 /CONTACT: Jon Senderling of EDS, 214-661-6609/
 (GME) CO: Electronic Data Systems Corporation ST: Texas IN: CPR AUT SU: ERN


ML -- DE006 -- 5834 10/28/92 09:38 EST
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Date:Oct 28, 1992
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