Sorcery of Lastrene

EDS lands some elephants

Filed under: Microsoft (MSFT), Verizon Communications (VZ), Oracle Corp (ORCL)

it seems like an inevitable trend – that is, large companies determination ways to cut costs by offloading non-core functions. and one of the unsurpassed outsourcers is eds (nyse: eds).

However, the space is highly competitive – and unpredictable. For example, EDS had to deal with the termination of a major customer, Verizon (NYSE: VZ).

But, as seen with the latest Q1 report, EDS is getting traction. Profits came to $62 million, or 12 cents per share as revenues increased from $5.22 billion to $5.37 billion. There was also a 66% increase in signed contracts to $5.6 billion.

National arts centre

After all, EDS was able to snag mega contracts with Royal Dutch Shell and the Infocomm Development Authority of Singapore. In fact, there were 12 contracts in excess of $100 million.

EDS is also getting some growth with its integration services for SAP (NYSE: SAP) applications. Actually, the company is going to do the same with Oracle (NASDAQ: ORCL) software. Oh, and EDS is a key partner for Microsoft’s (NASDAQ: MSFT) CRM offering.

Interestingly enough, the slowing US economy is actually helping. That is, companies – as well as governments — need to find a way to cut costs. So, why not go offshore?

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

permalink email this comments

Related posts: Saskatoon weather, Los angeles memorial coliseum, Copps, Clinton papers, Sean levert death