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Despite the deluge of grim earnings reported by IT and consultancy businesses this quarter, EDS reported growth in the third quarter and expects further growth in the upcoming quarter. The company said some of the reasons it has done well is because businesses are outsourcing systems to cut costs and since 11 September firms are interested in implementing IT security services and disaster recovery systems.
EDS, which employs 400 in Ireland, reported Q3 earnings of USD334 million, or USD0.69 per diluted share, up 20 percent compared with USD279 million, or USD0.59 cents, in the previous year. These earnings were in line with analysts' expectations.
William McAuliffe, client sales executive at EDS Ireland, said that the company is currently recruiting in Ireland at the graduate level and also for specifically skilled programmers. McAuliffe told ElectricNews.Net, "This quarter EDS won a USD11 million contract for the Land Registry department of the Irish government. We are going to digitise all the maps and deeds pertaining to land and property in the Republic."
He added that this quarter EDS completed Eircom's Interconnect project to enable customers to pay bills on-line. Next quarter, EDS plans to secure more financial and IT outsourcing contracts, having educated the Irish market about the benefits of outsourcing over the past few years. Xerox is one of EDS's largest outsourcing customers in Ireland.
The company also said that total third-quarter revenues rose 16 percent to USD5,600 million from USD4,800 million a year earlier. It stated that its new contract signings were up 10 percent to USD6,800 million for the eleventh consecutive quarter.
The company saw most of its organic revenues grow in Latin America, which increased 24 percent, followed closely by Europe, Middle East and Africa, which increased 23 percent. Revenues grew 16 percent in the United States and 12 percent in Asia Pacific.
However, one division of EDS did not have such positive news to report. EDS subsidiary A.T. Kearney's revenues declined eight percent, which EDS said reflects the overall softness in the management-consulting market.
But its security and defence contracts could contribute to a lucrative Q4 for EDS. This quarter, the company won a five-year, USD132 million contract to continue to support the system that enables the US Army to sign up new recruits from any community location nationwide. Businesses are currently competing for US military contracts as American operations continue in Afghanistan.
EDS is at http://www.eds.com
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