EDS results exceed expectations

Outsourcer reports positive results and confirms dividend payoff to unhappy shareholders

EDS and HP are approaching the final stages of their £7bn merger

IT outsourcing company Electronic Data Systems (EDS) surpassed market expectations by releasing positive results for the second half of 2008.

Net income increased to $160m (£80.7m) from $138m (£69.6m) the previous year. Revenue also rose, from $5.45bn (£2.75bn) to $5.62bn (£2.83bn) on the same period in 2007.

The results follow this week’s news that HP and EDS settled five outstanding lawsuits brought by shareholders questioning the valuation for the two firms’ upcoming $14bn (£7bn) merger, which received European Commission approval last week.

As part of the settlement, the two companies said that the merger’s closing will not take place before 18 August. A final dividend payment of five cents per share will be paid in September to all EDS shareholders on the company’s books as of 15 August.