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ACS Boosts Revenue

The IT services company's third-quarter sales rise 10% from a year ago.
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Affiliated Computer Services

(ACS)

beat Street earnings estimates by 2 cents, and sales rose roughly 10% in the third quarter.

The business process outsourcer earned $82.1 million, or 82 cents a share, for the quarter ended March 31, topping First Call analysts' expectations of 80 cents a share.

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That compares with earnings of $77 million, or 61 cents a share, a year ago.

Revenue at the Dallas, Texas-based company increased to $1.44 billion year over year from $1.31 billion, flat with Street consensus.

CEO Lynn Blodgett said that ACS "saw improvement in the areas of revenue and earnings growth, margin expansion and a strong performance from our government segment during the quarter."

The company is considering a buyout proposal from Darwin Deason, ACS' founder and board chairman and Cerberus Capital Management.

Shares of Affiliated Computer closed Tuesday's regular session at $59.91.