Perot earnings up on services deals
Computer services firm Perot Systems posts third-quarter net income of $15.3 million, excluding a gain and in line with expectations, on the strength of recent deals.
For the quarter, the Dallas-based firm said net income was $15.3 million, or 14 cents a share, excluding a gain, compared with net income of $9.6 million, or 9 cents a share, in the same period a year earlier. Analysts surveyed by First Call projected the company would earn 14 cents.
Like some of its competitors in the traditional computer services industry, Perot's stock has seen a downward curve in recent months as the firm scrambles to revamp itself into an Internet player. As of late, Perot Systems and competitors EDS, CSC, and even Andersen Consulting and Ernst & Young, have been competing against smaller, more nimble Web services firms and consultancies--such as Scient, Viant, Sapient, and iXL--that have been favored by Wall Street.
Perot Systems said revenue for the third quarter was $304.8 million, an increase of 12 percent from last year's $271.5 million, the company said.
Perot Systems said its positive third quarter was a result of large contract signings, including a 10-year contract the firm won earlier this month with Harvard Pilgrim Health Care. The company said the Harvard Pilgrim contract should exceed about $700 million in revenues. Perot Systems also said it has entered into the next phase of the agreement where it will team with Harvard Pilgrim on systems integration and health services initiatives.
"We are pleased with our earnings growth and the direction our business is going," Perot Systems chief executive Ross Perot said in a statement. "Our high value e-commerce and business consulting units are generating opportunities for long-term relationships like Harvard Pilgrim."