EDS Light on Contracts

Updated from 4:47 p.m. EDT

Tech services giant EDS (EDS) edged past second-quarter earnings estimates and guided in line for the full year, but quarterly contract signings came up light.

The company reported net income of $138 million, or 26 cents a share, up from $104 million, or 20 cents a share, in the same quarter a year earlier.

Factoring out charges from discontinued operations, earnings rose 35% to 27 cents a share. This beat analysts' average estimate by a penny.

Revenue rose 5% to $5.45 billion, in line with analyst forecasts and the company's target range.

"EDS continued to make significant operational progress in the second quarter," said Mike Jordan, chairman and chief executive officer. "Earnings and revenues were solid and keep us on pace to achieve our full-year guidance."

Revenue from the Americas, EDS' largest regional customer base, rose 2%, excluding the loss of a large contract, and accounted for 47% of total revenue.

Revenue from projects in the Asia-Pacific regions contributed 8% to total revenue and grew 26%. This outpaced revenue growth from all other regions.

In the quarter, EDS signed $4.3 billion in contracts, including government programs for satellite communications and biometric security. EDS also extended a contract with the largest Coca-Cola (KO) bottler in Latin America, Coca-Cola FEMSA, S.A. de C.V.