In the three months to March 31, 2004, the Dallas, Texas-based company grew net profit 25% to $99.7m, which included a $3m net gain on the sale of its contracts with Hanscom Air Force Base to ManTech International Corp, and was also boosted by income tax benefits relating to last year’s R&D activities. If these factors are stripped out, net profit grew 18%.
Revenue increased 2.8% to $1.01bn, but ACS said that excluding revenue from the Federal Government unit it sold to Lockheed Martin Corp last year and the disposed Hanscom contracts (worth some $25m in annual sales), revenue increased 25% year-on-year.
During the quarter, ACS signed $146m of annualized revenue in new deals which included a seven-year deal with fast food giant McDonald’s Corp to support more than 6,000 desktops, as well as a 10-year deal to manage the human resources functions of Goodyear Tire and Rubber Co.
ACS said it is on target for revenue of between $4.48bn to $4.56bn in the year ending June 2005, which would rank it as one of the best-placed second outsourcing operators. In 2003, ACS ranked as the seventh-fastest growing of the world’s 50 largest IT services vendors, according to ComputerWire research.
This article is based on material originally published by ComputerWire
