PRNewswire-FirstCall
PLANO, Texas
(NYSE:PER)
PLANO, Texas, July 28 /PRNewswire-FirstCall/ -- Perot Systems Corporation (NYSE: PER) today announced second quarter 2008 financial results:
-- Revenue was $705 million, an increase of 11% year-to-year over second quarter 2007 revenue of $635 million.
-- Earnings per share (diluted) was $.24, an increase of 33% over second quarter 2007 earnings per share (diluted) of $.18.
-- Operating profit margin expanded year-to-year by one percentage point to 6.7% for the second quarter of 2008.
-- New contract signings totaled $261 million for the second quarter of 2008, bringing the total value of new contracts signed during the past twelve months to $1.8 billion.
-- Operating Cash Flow and Capital Expenditures for the second quarter of 2008 totaled $60 million and $13 million, respectively. Trailing twelve month Operating Cash Flow and Capital Expenditures were $220 million and $54 million, respectively.
-- As of June 30, 2008, Cash totaled $196 million. During the second quarter of 2008, Perot Systems reduced amounts outstanding on its line of credit by $30 million. Debt totaled $186 million as of June 30, 2008.
"On a foundation of strong client relationships, solutions that address market needs, and a sound operating model, our business continues to prosper," said Peter Altabef, president and CEO of Perot Systems. "Revenue, earnings, profit margins, and cash flow increased during the quarter as we continue to win new business and expand existing relationships. Overall, it was a productive quarter where we continued to advance our business."
Trend Information and Business Outlook
For the third quarter of 2008, Perot Systems expects revenue to range from $700 million to $715 million. Perot Systems expects to realize a revenue contribution between the second quarter and third quarter from new sales and recent acquisitions, partially offset by slightly higher pass-through revenue in the second quarter of 2008. Earnings per share (diluted) for the third quarter of 2008 is expected to range from $.23 to $.25.
Conference Call
Perot Systems will hold a conference call to review second quarter 2008 results of operations on July 29, 2008, at 10:15 a.m. EDT. Parties interested in participating may join the conference call via the Internet at http://www.perotsystems.com/. Additionally, Perot Systems has published a downloadable summary of its second quarter 2008 financial results at http://www.perotsystems.com/.
Perot Systems Corporation
Condensed Consolidated Income Statements
For the Three Months Ended June 30, 2007 and 2008
(Millions of USD, except per share amounts)
Unaudited
Three Months Ended
June 30
2007 2008
Revenue $635 $705
Direct cost of services 529 585
Gross profit 106 120
Selling, general & admin 70 73
Operating income 36 47
Other income, net 1 1
Interest expense, net (1) (1)
Income before taxes 36 47
Provision for income taxes 13 17
Net income $23 $30
Earnings per share (diluted) data:
Earnings per share (diluted) $.18 $.24
Shares outstanding (diluted) 125 121
Perot Systems Corporation
Revenue Summary
For the Three Months Ended June 30, 2008
(Millions of USD)
Unaudited
Revenue
2Q 2007 $635
Growth/(Decrease) Related to:
New contracts 22
TTM acquisitions 1) 20
Accounts 4
Industry Solutions 46
Government Services 16
Existing operations 2) 15
TTM acquisitions 3) 2
Consulting & Applications Solutions, gross 2) 17
Inter-segment eliminations 4) (9)
2Q 2008 $705
Year-to-Year
Revenue Growth % of Total
Healthcare $328 3% 46%
Commercial 154 30% 22%
Industry Solutions 1) 482 11% 68%
Government Services 161 11% 23%
Consulting and Applications
Solutions, gross 2) 3) 92 23% 13%
Inter-segment eliminations 4) (30) 43% (4%)
Total $705 11% 100%
Perot Systems Corporation
Condensed Consolidated Balance Sheets
As of December 31, 2007 and June 30, 2008
(Millions of USD)
Unaudited
As of As of
12/31/2007 6/30/2008
Cash and cash equivalents $187 $196
Short-term investments 23 ---
Accounts receivable, net 477 487
Prepaid expenses and other 70 97
Total current assets 757 780
Property, equip. & software, net 235 225
Goodwill 713 727
Other non-current assets 195 208
Total assets $1,900 $1,940
Current liabilities $330 $347
Long-term liabilities 327 319
Stockholders' equity 1,243 1,274
Total liabilities & stockholders' equity $1,900 $1,940
Perot Systems Corporation
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended June 30, 2007 and 2008
(Millions of USD)
Unaudited
Three Months Ended
6/30/2007 6/30/2008
Net income $23 $30
Depreciation and amortization 26 28
Changes in assets and liabilities (net of
effects from acquisitions of businesses) and
other non-cash items (33) 2
Net cash provided by operating activities 16 60
Purchases of property, equipment & software (27) (13)
Acquisitions of businesses, net (8) (21)
Proceeds from sale of short-term investments, net 21 ---
Other investing, net 1 (1)
Net cash used in investing activities (13) (35)
Repayment of long-term debt 5) --- (32)
Proceeds from issuance of common stock 5 4
Proceeds from issuance of treasury stock --- 3
Other financing activities 3 ---
Net cash provided by (used in) financing activities 8 (25)
Effect of exchange rate changes on cash 2 (5)
Net cash flow $13 ($5)
Footnotes
1. During the past twelve months, Perot Systems acquired JJWild, Inc. (JJWild) and HighQ-IT for the manufacturing industry GmbH (HighQ-IT). These acquisitions contributed $20 million of revenue for the second quarter of 2008, which is reported in the Industry Solutions line of business. Within Industry Solutions, JJWild is reported in Healthcare, and HighQ-IT is reported in Commercial.
2. Gross revenue measures all services provided by Consulting and Applications Solutions, both direct-to-market and through our other lines of business.
3. During the past twelve months, Perot Systems acquired Original Solutions Limited. This acquisition contributed $2 million of revenue for the second quarter of 2008, which is reported in the Consulting and Applications Solutions line of business.
4. Inter-segment eliminations relate to the revenue associated with services provided by Consulting and Applications Solutions to our other lines of business.
5. During the second quarter of 2008, Perot Systems made payments to reduce amounts outstanding on its line of credit by $30 million. The remaining reduction to debt relates to other debt repayment in the ordinary course of business.
About Perot Systems
Perot Systems is a worldwide provider of information technology services and business solutions. Through its flexible and collaborative approach, Perot Systems integrates expertise from across the company to deliver custom solutions that enable clients to accelerate growth, streamline operations and create new levels of customer value. Headquartered in Plano, Texas, Perot Systems reported 2007 revenue of $2.6 billion. The company has more than 23,000 associates located in the Americas, Europe, Middle East and Asia Pacific. Additional information on Perot Systems is available at http://www.perotsystems.com/.
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. For factors that could affect our business and cause actual results to differ materially, please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the U.S. Securities and Exchange Commission and available at http://www.sec.gov/, as updated in our Quarterly Reports on Form 10-Q filed after such Form 10-K, for additional information regarding risk factors. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.
MEDIA CONTACTS:
PEROT SYSTEMS CORPORATION
Joe McNamara
+1 972 577-6165
joe.mcnamara@ps.net
INVESTOR CONTACT:
John Lyon
+1 972 577-6132
+1 972 577-6791 fax
john.lyon@ps.net
SOURCE: Perot Systems Corporation
CONTACT: Media, Joe McNamara, +1-972-577-6165, joe.mcnamara@ps.net, or
Investors, John Lyon, +1-972-577-6132, or fax, +1-972-577-6791,
john.lyon@ps.net, both of Perot Systems Corporation
Web site: http://www.perotsystems.com/
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