EDS reveals deal to regulators

The embattled technology services firm reports a transaction to the Securities and Exchange Commission, which is conducting a probe into EDS.

Ed Frauenheim Former Staff Writer, News
Ed Frauenheim covers employment trends, specializing in outsourcing, training and pay issues.
Ed Frauenheim

Embattled technology services company Electronic Data Systems said in a public filing on Friday that it had recently reported to the U.S. Securities and Exchange Commission "a matter involving a transaction between the Company and a third party. The transaction was not material to the Company." An EDS representative said the matter was not related to an existing SEC investigation into the IT services giant, a probe that covers topics including stock-hedging efforts and the events leading up to its earnings warning for the third quarter of 2002. In addition, the SEC has requested documents related to EDS' massive Navy contract.

EDS said it would have posted a net loss for the second quarter this year if not for the sale of a software division.