EDS posts delayed Q3 results

EDS posts delayed Q3 results

Electronic Data Systems (EDS) reported a net loss of $US153 million for the third quarter of this year. The report was delayed several times as the company grappled with accounting issues.

The loss was affected by an asset impairment charge of $US375 million associated with the Navy Marine Corps Intranet (NMCI) project.

The NMCI contract was awarded in 2000 but has been plagued by delays and has drained cash from EDS. EDS also announced it had restated results for the third and fourth quarters of 2003.

Its external auditor, KPMG, recommended the restatement to reflect a more appropriate allocation of quarterly bonus plan accruals, money that EDS sets aside and accrued as an expense for the purpose of bonuses it pays later to employees, the company said.

At the same time, EDS announced that its own internal audit committee had completed an investigation of the accruals and other adjustments and found that there had been no improper activities or conduct connected with them.

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