Affiliated Computer Services Inc.'s (ACS) fiscal second-quarter
profit rose 27% on higher margins and lower taxes as the company
nabbed new clients and saw growth from the commercial and
government sectors.
But results fell short of analysts' expectations.
The business-services provider is in the midst of being acquired
by Xerox Corp. (XRX) after years of seeking a buyer.
For the period ended Dec. 31, ACS reported earnings of $96
million, or 97 cents a share, up from $75.5 million, or 77 cents a
share a year earlier. Revenue rose 2.7% to $1.66 billion.
Analysts surveyed by Thomson Reuters expected earnings of 99
cents a share on revenue of $1.7 billion.
Chief Executive Lynn Blodgett said ACS generated the
second-highest amount of new business in its history.
Gross margin rose to 11.7% from 10.9%. Meanwhile, income-tax
costs fell 25%.
-By Dana Mattioli, Dow Jones Newswires; 212-416-2481;
dana.mattioli@wsj.com