In the three months to September 30, 2003, the Texas-based company increased net profit 25% to $86.6 million on revenue that grew 17% to $1.04 billion. Organic revenue growth for the quarter was 15% although the figures do not include any impact from the proposed exchange of a large part of its federal government business with Lockheed Martin’s [LMT] commercial IT business, which has yet to be completed.
ACS signed $149 million of new business during the quarter, including a $400 million deal with PC manufacturer Gateway Inc [GTW] to supply a range of support services for its IT, human resources and finance functions.
ACS also celebrated its third contract win in nine months in the area of human resources outsourcing, a sector that is tipped to grow in excess of 30% annually over the next few years.
It is in the final stages of bidding for a contract renewal with its largest single client, the US Department of Education, for which it processes student loans applications. It expects an award in November. The DoE accounted for $122 million, or 4% of ACS’s revenue in the year to June 2002.
The company also gave an update on its dispute with the State of Georgia, where it is in talks over implementation delays and payment issues regarding its contract to process the state’s Medicaid health insurance functions.
ACS said that as of September 30, it had accrued $84.5 million in unbilled receivables under the percentage-of-completion accounting method related to this contract, and had $48.1 million of billed receivables, of which $42.8 million was past due.
This article was based on material originally published by ComputerWire.
