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EDS might miss results filing deadline

Electronic Data Systems Corp. Wednesday said it might miss its deadline to file third-quarter results and warned of a possible revision for 2003 results.
/ Source: Reuters

Electronic Data Systems Corp., a technology services provider under government investigation, on Wednesday said it might miss its deadline to file third-quarter results and warned of a possible revision for 2003 results.

EDS, which has already delayed its earnings announcement for about a week, said it will not report until reaching an agreement with its auditor KPMG regarding an asset impairment charge for its money-losing $8.8 billion Navy contract.

The company also said KPMG has informed its audit committee about certain issues related to its quarterly bonus plan accruals in 2003 and 2004. The resolution of these issues could result in revisions to quarterly financial statements within 2003, EDS said, but will not affect reported full-year results.

EDS said KPMG will not be able to complete its interim review of its third-quarter results until the audit committee work is completed, which is not expected to occur by the date EDS is required to file its form 10-Q for that quarter.

The U.S. Securities and Exchange Commission is conducting a formal probe on EDS related to certain customer contracts, a hedging practice that went awry, an earnings warning in 2002 and the Navy contract.