Updated from 5:10 p.m. EDT

Affiliated Computer Services'

(ACS)

profit fell from the year-ago quarter, and EPS met the Street's earnings expectations.

Revenue for the fourth quarter was $1.38 billion, a rise of 14% from $1.21 billion a year ago. Revenue also increased 23% for fiscal-year 2006 compared with the prior year.

Investors sent shares up 1.7%, or 84 cents, to $49.95 in after-hours trading.

The Dallas-based IT services company said Wednesday that it earned $86.9 million, or 73 cents, for the quarter ended June 30. In the year-ago quarter, the company earned $111 million, or 87 cents.

Excluding certain items such as restructuring charges and legal fees, ACS earned 79 cents a share, in line with analysts' estimates. The Street forecast sales of $1.37 billion for the quarter.

During a call with financial analysts, company CEO Mark King said ACS would no longer supply financial guidance on an annual basis. Instead, he said, the company would provide "more qualitative guidance," such as information about the company's pipeline and competition and renewals so that analysts could "draw their own conclusion."

Thomson First Call analysts expect an EPS of 82 cents and revenue of $1.43 billion for the September quarter.

For its fiscal fourth quarter, ACS' commercial segment accounted for 60% of revenue, while its government division added 40%.

The company also said it is making a big push into the Human Resources BPO market and said it is "very bullish" on the segment.

King also addressed ACS' bungled contract with North Carolina Medicaid. The state recently cancelled the contract, and ACS responded by filing a lawsuit against it. King said it was a "drastic measure," but the company felt that it had no choice.

"We would be accepting blame that we do not deserve," he said.

When asked if the company has had problems renewing or attracting business given the problem contract and the scrutiny on the company about its

stock options practices, King said, that ACS "does great work ... . What the clients care about is how we are delivering service to them."

ACS said it would continue to make small tactical acquisitions such as its recent $75 million purchase of

Intellinex

and its $40 million deal (plus contingent payments up to $10 million) for

Primax Recoveries

.

ACS' results do not include the resolution of the company's stock-options investigation.

In addition, ACS said it will buy up to $1 billion of its stock, augmenting the

$1 billion buyback announced in June.

During the regular session of trading, ACS shares fell 2.2%, or $1.09, to $49.11.