ACS announces 71 percent earnings growth in 2002

Affiliated Computer Services Inc. reported an increase of 71 percent in net income for fiscal 2002, which ended June 30. Net income for fiscal 2002 was $229.6 million compared to $134.3 million for fiscal 2001, the Dallas-based company said.


Overall revenue for the company was up 48 percent to $3.06 billion, compared to $2.06 billion the previous year, the company said.


For its fiscal 2002 fourth quarter, the company saw a 56 percent increase in revenue, compared to the same quarter in 2001, with revenue growing to $856.8 million from $550.5 million.


ACS' growth was fueled in part by its June 2001 acquisition of the global government solutions business from Systems & Computer Technology Corp., Malvern, Pa., and by its July 2001 acquisition of Lockheed Martin IMS from Lockheed Martin Corp., Bethesda, Md.


At the time the purchases were announced, ACS reported that SCT's Global Government Solutions had annual revenue of $85 million, and the IMS unit had annual revenue of $580 million.


New contract signings were $554 million in 2002, compared to $345 million in fiscal 2001, an increase of 61 percent.


The company expects revenue of $3.8 million for fiscal 2003, with the percentage of estimated internal growth in the mid teens.


Jeff Rich, ACS' chief executive officer, said the company continues to see "excellent opportunities" in its business process outsourcing services offerings and hopes to capitalize on IT outsourcing opportunities next year as well.


"We're on a mission to be the leading provider of business process outsourcing services and fiscal 2002 was a breakout year for ACS," Rich said.


Rich said he and Warren Edwards, ACS' chief financial officer, will certify the company's financial statements when ACS files its annual report on Form 10-K in September.