Printer Friendly


 DALLAS, July 28 /PRNewswire/ -- EDS announced today that it had achieved record net income and revenue in the second quarter, primarily as the result of its global expansion efforts and strong new sales.
 EDS, which is based in the United States and has operations in more than 30 countries, said that for the quarter ended June 30, 1993, net income rose 13 percent to $178.1 million, compared with $157.1 million in the corresponding period last year. Second-quarter revenues increased 4 percent to $2.1 billion, from $2 billion in the second quarter of 1992; and new contract signings reached a level of $2.18 billion.
 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 $0.04 in the second quarter, from $0.33 a year ago to $0.37 in 1993, a gain of 12 percent.
 Les Alberthal, EDS chairman, president and CEO, said, "Our ability to continue registering strong performance while dedicating large technical and human resources to the global expansion of the company is a testament to EDS' unwavering commitment to being the leading provider of information technology services throughout the world.
 "This commitment to leadership benefits from vigilant focus on achieving greater operating efficiencies and margins, coupled with the flexibility to respond swiftly to changing market opportunities," Alberthal continued. "While our base-revenue growth during the first half of 1993 has not matched previous gains, this is a temporary trend reflecting an unusual number of contract completions in 1992. With new contract signings of $3.3 billion in the first half of this year, along with the contribution from our record backlog at the end of last year, the probability of double-digit revenue growth significantly increases for 1993. This would mark the 31st consecutive year of growth for EDS."
 The second quarter was highlighted by EDS' winning of the largest European contract in the company's history and by the announcement of an agreement with the Southland Corporation to install and operate thousands of automated teller machines (ATMs).
 First, EDS was selected by the Swedish retail/business cooperative group Kooperativa Forbundet (KF Group), a national umbrella organization of 120 Swedish cooperatives, to provide information technology (IT) support to the group.
 Second, EDS announced the beginning of a 10-year relationship with Southland under which it expects to deploy and operate as many as 4,000 ATMs in 7-Eleven stores in selected markets. EDS' operation of the ATMs will include processing, administration and enhancement.
 EDS also was active in a variety of other areas during the second quarter.
 In Europe, EDS was selected by Telefonica, Spain's national telecommunications company, to implement a new billing and collections system. Under the contract, EDS will enhance Telefonica's service through three functional areas -- message processing, invoice processing and receivables management.
 And Grupo Santander, a bank-holding company based in Madrid, Spain, selected EDS to manage IT services for its Puerto Rican subsidiaries, including Banco Santander Puerto Rico, Santander National Bank and Santander Overseas Bank.
 In France, EDS-GFI won a systems-management contract with la Compagnie Generale Maritime SA (CGM), one of France's leading sea- transport companies. Under the agreement, EDS-GFI will take over CGM's IT system and provide the transport company with a flexible, open architecture environment.
 In Canada, EDS acquired JWP/Businessland Canada. Businessland's services include wide- and local-area-network design and implementation, resale and integration of personal computer products, software application training and field service maintenance. Also in Canada, EDS won a multi-year, systems-management contract with the National Rubber Co. under which EDS will enhance the company's IT environment to include electronic-data-interchange and bar-coding technologies.
 Meanwhile in the financial arena, EDS signed systems-management contracts with Republic National Bank of New York and the Nevada Credit Union League (NCUL). Under the agreement with Republic, EDS will manage the bank's telecommunications and network management services, including equipment procurement, installation and management. For NCUL, EDS will assume on-site responsibility for all IT services previously provided by the league to affiliated credit unions.
 In the communications industry, Sprint, the diversified international telecommunications company, selected EDS to enhance and integrate Sprint's Customer Invoice Management Systems, an advanced local exchange billing system; and BellSouth Telecommunications, Inc., the largest provider of local telephone service in the U.S., chose EDS to enhance the workforce management systems for BellSouth's Operator Services, Customer Services and Centralized Repair Bureaus.
 EDS also won a contract with Bulk Materials, Inc. (BMI), to manage all voice and data network operations. BMI is composed of 15 trucking companies that transport chemical, petroleum and food products in 22 states and is one of the three largest bulk materials transporters in the country.
 In the government arena, EDS signed a contract with Zenith Data Systems to provide microcomputer software, documentation, upgrades and support to the U.S. Department of Defense (DOD) as part of Desktop IV, the primary personal computer contract that will offer the entire DOD and civilian agencies 486-DOS and UNIX machines and software. EDS will be the sole provider of DOS Microsoft applications software.
 EDS also won an agreement with the U.S. Department of Defense to provide systems engineering and technical assistance to the department's Center for Information Management.
 The State of Florida, meanwhile, awarded a multi-year contract to EDS during the second quarter under which EDS will continue to offer application editing, customer-service-inquiries support, collections assistance, claims adjudication and federal reporting services to the state's Office of Student Financial Assistance.
 And the State of New Hampshire signed a multi-year contract with EDS to support the state's Medicaid program. Under the agreement, EDS will provide client/server solutions that will allow the state to better serve its Medicaid recipients by providing "real-time" access to information. EDS also will install a point-of-sale network to facilitate recipient-eligibility verification and to capture claims electronically.
 EDS also was selected by New York City's Department of Transportation to implement and operate an automated traffic enforcement system that will photograph traffic-light offenders, issue tickets to vehicle owners and support ticket processing.
 Also in the second quarter, EDS signed its largest non-IT-related contract with its parent, General Motors Corporation. Under the new agreement, EDS will provide administrative services for GM's qualified and non-qualified pension and retirement plans. Responsibilities will include providing GM with a single point of contact for the administration and delivery of pension benefit services for more than 800,000 plan participants.
 In addition, EDS announced completion of the General Motors Pulsat Network, the world's largest private satellite network linking more than 8,800 GM dealers nationwide. The network offers enhanced communications for ordering new vehicles, obtaining service and warranty information and applying for credit approvals as well as video transmissions to dealers on subjects ranging from product information to sales and service skills training.
 In another major development during the quarter, EDS joined with the Amdahl Corporation in announcing the formation of the Antares Alliance Group, a joint-venture software products company. The new company will offer products that will enhance the development time for software products and allow those products to be used on cross-platform technologies -- from the mainframe to the desktop.
 (in millions, except per share amounts)
 Second Quarter Ended Six Months Ended
 -------------------- ----------------
 June 30, June 30,
 1993 1992 1993 1992
 ---- ---- ---- ----
 Systems and other
 contracts $ 2,075.4 $ 2,005.3 $4,135.2 $3,985.9
 Interest and other
 income 15.1 12.0 28.5 26.4
 --------- --------- -------- --------
 Total Revenues 2,090.5 2,017.3 4,163.7 4,012.3
 Total Costs and
 Expenses 1,812.3 1,767.9 3,648.9 3,551.6
 --------- --------- -------- --------
 Income Before Income
 Taxes 278.2 249.4 514.8 460.7
 Provision for Income
 Taxes 100.1 92.3 185.3 170.5
 --------- --------- -------- --------
 Separate Consolidated
 Net Income $ 178.1 $ 157.1 $ 329.5 $ 290.2
 --------- --------- -------- --------
 Earnings Attributable to
 GM Class E Stock on a
 Per share Basis $ 0.37 $ 0.33 $ 0.69 $ 0.61
 Cash Dividends Per
 Share of GM Class E
 Common Stock $ 0.10 $ 0.09 $ 0.20 $ 0.18
 Revenues related to GM and subsidiaries amounted to $834.8 and $828.4 million for the second quarter ended June 30, 1993 and 1992, respectively, and $1,680.7 and $1,646.5 million for the six months ended June 30, 1993 and 1992, respectively.
 (in millions)
 June 30, Dec. 31,
 ASSETS 1993 1992
 ---- ----
 Current Assets
 Cash and marketable securities $ 538.3 $ 587.9
 Accounts receivable 1,244.8 1,255.1
 Inventories 122.8 88.5
 Prepaids and other 227.9 225.5
 -------- --------
 Total Current Assets 2,133.8 2,157.0
 Property and Equipment, Net 1,857.3 1,720.7
 Operating and Other Assets 2,243.5 2,245.8
 -------- --------
 Total Assets $6,234.6 $6,123.5
 -------- --------
 Current Liabilities
 Accounts payable $ 301.5 $ 348.0
 Accrued liabilities 838.7 918.4
 Deferred revenue 277.4 295.8
 Income taxes 31.7 66.0
 Notes payable 325.6 274.9
 -------- --------
 Total Current Liabilities 1,774.9 1,903.1
 Deferred Income Taxes 669.1 595.9
 Notes Payable 464.8 561.1
 Total Stockholder's Equity 3,325.8 3,063.4
 -------- --------
 Total Liabilities
 and Stockholder's Equity $6,234.6 $6,123.5
 -------- --------
 -0- 7/28/93
 /CONTACT: Jon Senderling of EDS, 214-605-6790/

CO: Electronic Data Systems Corporation ST: Texas IN: CPR AUT SU: ERN

SB -- DE010 -- 6670 07/28/93 09:47 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 28, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters