IT services provider Affiliated Computer Services has reported a 7% decline in net income to $75.51m for the second quarter 2009, compared to net income of $81.59m in the year-ago quarter, on revenue up 7% at $1.61 billion.
Operating income grew 7% to $168.53m, while diluted EPS fell 5% to $0.77. Operating cash flow during the quarter was $246m. The company generated new business signings of $202m in annual recurring revenue, with commercial deals contributing 54%, and government deals contributing 46%. Business process outsourcing represented 85% of new deals, while IT outsourcing represented 15%.
It said commercial revenue grew 7% to $963m, while government revenue grew 8% to $649m.
Last December, the company acquired Argentina-based customer care firm Grupo Multivoice to expand and diversify its communications and consumer goods vertical.
For the first half, the company reported a 7% increase in net income to $159.15m compared to $147.74m a year ago, on revenue up 7% at $3.22 billion.
Lynn Blodgett, president and chief executive at ACS, said: ACS has a recession resistant model that performed well again this quarter. We delivered strong performance in revenue, earnings, cash flow, and bookings. We have also undertaken several initiatives that will further increase the resiliency of our business. We are proactively managing the business to take advantage of opportunities in this market.
For the third quarter the company expects EPS of $0.92 to $0.95. It reduced the lower end of its fiscal 2009 revenue outlook by 1% point and expects internal revenue growth of 5% to 6%.
