Services giant EDS delighted Wall Street by beating analysts' expectations for its fiscal fourth quarter by a penny.
However its continued dispute with Xerox cost it $200 million in revenue for the quarter ended 31 December 1998, causing EDS to report revenue increases of only 4.7 per cent to $4.4 billion.
EDS turned in a profit of $264.1 million or earnings per share 53 cents. Analysts surveyed by First Call estimated earnings of 52 pence per share. This compares profit of $941.6 million, and earnings per share of $1.91 during the fourth quarter of 1997.
Its profit, including charges and adjustments was $142.2 million, compared to $283.4 million last year. Earnings per share after charges were 29 cents.
For the year, profit fell 11 per cent to $840.1 million, or earnings per share of $1.70. Including charges, gains and adjustments, profit dropped even further to $743.4 million, or $1.50 a share.
Payouts during the year include $12.7 million for the retirement of vice chairman Gary Fernandes.
EDS has been at loggerheads with Xerox for more than a year. EDS filed a suit against Xerox over its obligations to pay for certain infrastructure services.
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