On Tuesday, management announced that there was an 11% increase in revenue to $635 million for the fiscal second quarter. Still, net income fell from $26 million, or $0.21 per share, to $23 million, or $0.18 per share. A big drag came from the expiration of a major contract with UBS
Then again, there was a nice boost from a $244 million acquisition of QSS Group in January. It added about $69 million in revenue for Q2 and was neutral to earnings.
Perot Systems' core strength is in the health-care industry, and the company continues to see traction. However, there's some uncertainty with its contract with Triad, which recently sold out to Community Health
Yet again, Perot System's management was unclear on the matter.
Going forward, the company's revenue guidance for Q3 is for $650 million to $665 million. This assumes a pickup in new contracts, as well as the close of its undisclosed acquisition target. In other words, things could be a bit dicey.
It seems that investors would prefer Perot Systems to sell out to a bigger player like EDS