Electronic Data Systems has invested $430 million in a contract that could hurt its bottom line. The computer services company said in a regulatory filing last week that the contract with a commercial customer has "experienced delays in its development and construction phases, and that certain milestones in the contract have been missed." EDS said its invested assets in the contract included equipment and software, and that "significant further delays in development and construction could result in an impairment of a large portion of the associated assets." EDS also said it believed its investment in the contract would be recovered over the contract's terms.
"We're working with the client to ensure the project is completed successfully," said company spokesman Jeff Baum. Baum declined to name the customer.