Updated from 4:41 p.m. ESTAffiliated Computer Services ( ACS ) posted second-quarter earnings in line with Wall Street expectations Thursday on weaker-than-expected sales. In a move unlikely to quell concerns about slowing growth, the company lowered guidance for fiscal 2005 and said third-quarter results also could fall short of expectations because customers are taking longer to sign deals and projects are taking longer to ramp up. Tempering that news, the Dallas-based business process and information technology outsourcing firm reported what one executive called a "blowout quarter in terms of bookings" and strong cash flow during the quarter that ended Dec. 31. Affiliated Computer Services reported net income of $96.1 million, or 73 cents a share, in the second quarter, which ended Dec. 31. That was down from net income of $253 million, or $1.80 a share, in the same period a year ago. Earnings a year ago totaled 64 cents a share when excluding $1.25 a share from ACS' federal business as well as a charge of 9 cents a share related to a settlement with the Georgia Department of Community Health. Analysts were expecting the company to bring in earnings per share of 73 cents, according to Thomson First Call. ACS' revenue rose about 3% to $1.03 billion from $997.9 million a year earlier. That was the low end of the company's guidance, and it fell short of the consensus estimate calling for $1.04 billion in sales. Excluding the revenue associated with ACS' divestiture of its federal business, revenue grew 11% from a year earlier. Internal revenue growth for the quarter, excluding growth from acquisitions, fell to 4% from 11% in the first quarter. On a postclose conference call, company executives said the quarter should mark the bottom for internal revenue growth. They are expecting overall internal growth to range from 7% to 10% in fiscal 2005.