DOW JONES NEWSWIRES
Affiliated Computer Services Inc. (ACS) posted a 13% rise in
fiscal third-quarter net income as the outsourcing and
information-services company saw sales and margins improve.
Amid the recession, outsourcing services remain in high demand
as businesses look for ways to cut back on spending. A broad
product pipeline, which includes consulting among other programs,
has insulated Affiliated Computer from a broad downturn in
information-technology spending, allowing the company to snap up
smaller companies and hire new employees. Affiliated Computer
serves the commercial and government sectors through long-term
contracts.
For the quarter ended March 31, Affiliated Computer said net
income rose to $93.2 million, or 95 cents a share, from $82.6
million, or 85 cents a share, a year earlier. Excluding costs for a
production initiative, earnings increased to $1 a share from 91
cents.
Revenue grew 4.4% to $1.61 billion.
Analysts polled by Thomson Reuters projected earnings of 93
cents a share on revenue of $1.65 billion.
Gross margin rose to 12% from 11.6%.
"Our business demonstrated remarkable performance in the current
economic climate," said Lynn Blodgett, president and chief
executive. "We signed a record level of new business, we grew
revenues and profit, and we generated the highest level of adjusted
earnings per share in our history."
Shares rose 3.4% to $50 in after-hours trading and are up 5.3%
so far this year.
-By Katherine E. Wegert and Lauren Pollock, Dow Jones Newswires;
201-938-5294; katherine.wegert@dowjones.com