BusinessCorporate FinanceEDS postpones earnings release

EDS postpones earnings release

Electronic Data Systems has postponed the release of its third quarter 2004 earnings for the second time, as it continues to negotiate with its auditor KPMG over the value of assets in its largest contract with Navy Marine Corps Intranet.

Link: EDS fights back against BSkyB lawsuit

KPMG has also brought to the attention of the IT services group’s audit committee certain issues concerning its quarterly bonus plan accruals in 2003 and 2004.

The outcome could result in revisions to quarterly financial statements of 2003, but EDS said it ‘does not believe these issues will affect its reported financial results for that full year’.

The company was due to report third-quarter earnings on 25 October. Independent counsel and accounting advisers are assisting the audit committee in its investigation of the company-wide bonus scheme. The company said it did not expect a ‘material adverse effect on its financial results or its credit facilities or debt instruments’.

KPMG will not be able to complete its interim review of EDS’ financial statements for the quarter ended 30 September 30, until the audit committee concludes its inquiry.

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