Growth from its government services division has once against bolstered sales at outsourcing company Perot Systems Corp [PER] in the third quarter ended September 30, 2003.
The company has reported year-on-year net income of $15.7 million down from $18.7 million, on revenue that grew 8% to $371.3 million.
Government services revenue grew 181% to $54.2 million, after the February 2003 acquisition of Soza & Company contributed $32.7 million of revenue over the quarter.
Although adoption of new accounting standards caused reduced overall revenue (adoption of EITF 00-21 resulted in $7.6 million less revenue year-on-year), it was the IT solutions and consulting divisions that held the company back.
Revenue from Perot’s biggest division, IT solutions, fell $5.5 million, or 2%, year-on-year, to $302.1 million. This decline was primarily attributable to an $18.7 million drop from account activities Perot Systems is exiting, with $15.3 million of this decline resulting from a European infrastructure services joint venture that Perot Systems exited during the three months ended September 30, 2002.
Additionally, revenue for existing accounts and short-term consulting services declined by $5.1 million year-on-year. Total consulting revenue fell 5% to $14.5 million over the quarter.
Future outlook is cautious but generally positive, with fourth-quarter revenue expected to range from $363 to $378 million.
This article was based on material originally published by ComputerWire.