Perot Systems reports weak third quarter and announces 650 job cuts

[OhioChick]

Source: Dallas Morning News

Move comes as firm says quarter's results fail to meet forecast


12:00 AM CDT on Wednesday, October 31, 2007

Shares of Perot Systems Corp. dropped almost 8 percent Tuesday after the Plano-based computer services firm said third-quarter results were weaker than expected and announced 650 job cuts.

Perot also said it is losing a contract with Triad Hospitals Inc. that generated about $20 million in revenue in the third quarter, although Perot will pocket a $45 million early termination fee in the fourth quarter.

Shares of Perot lost $1.23, or 7.7 percent, to close at $14.85.

In an interview after the third-quarter numbers were released, chief executive Peter Altabef said the difficulties in the third quarter won't hamper the company long term.

"IT is a growth market, and we're a growth company," he said, referring to information technology.





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