EDS has grown revenue and pushed up its share price thanks to a number of large contracts signed in the second quarter of the year.

The company filed a five per cent second quarter sales increase to $5.45bn (£2.69bn) from $5.19bn (£2.56bn) a year ago.

EDS had an adjusted net income of $143m (£70.5m) for the period, versus a second quarter 2006 adjusted net income of $107m (£52.75).

'EDS continued to make significant operational progress in the second quarter,' said Mike Jordan, chairman and chief executive officer.

'We improved our competitiveness by building on our capabilities in applications services and deploying our Global Services Network.'

EDS signed six deals in the second quarter of 2007 with contract values greater than $100m (£49.3m) with clients in the communications, government, financial services and consumer goods industries – including an eight-year, $1bn (£493m) applications and IT services contract with Germany's KarstadtQuelle, Europe’s leading retail and tourism group.

Second quarter 2007 operating margin was 4.3 per cent on an adjusted basis versus 2.9 per cent in the year-ago quarter.

Free cash flow was $156m (£77m) in the second quarter of 2007 compared to $362m (£178.45) for the same perioda year ago, when EDS benefited from two large one-time client payments.