Buyers are well-served by remembering
some timeless lessons, Forrester says.
The deal is good news for a company that has struggled of late. EDS announced Monday that its fourth-quarter earnings will fall by 5 cents per share because of aircraftwith United Airlines, whose parent company, UAL, has filed for bankruptcy.
EDS stock also fell this fall after the company offered third-quarter earnings guidance well below expectations, including write-downs associated with the US Airways and WorldCom bankruptcies. In October, EDS said it was the subject of an SEC.
But the deal with Bank of America does follow other positive announcements from EDS. The company said Wednesday it is in final contract negotiations with the Bank of Bermuda for a $375 million, 12-year deal related to banking systems and IT services. On Tuesday, EDS announced it had inkedworth $240 million with two existing clients, timber company Weyerhaeuser and Australian power utility Integral Energy.
EDS is one of the largest IT services companies in the world, with revenue last year of $21.5 billion.