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EDS Electronic Financial Services Inc history
EDS Electronic Financial Services Inc company history timeline
In 1952, while still in the Navy, he was recruited to be a salesman by International Business Machines (IBM). Initially he found their business style comfortable, but became frustrated after a time.
In January 1962, Perot had already fulfilled his entire annual sales quota because of a recent change in IBM's commission structure.
In 1963 EDS signed its first long-term commercial facilities management contract with Herman Lay of Frito-Lay.
He had bought wholesale computer time on an IBM 7070 computer installed at Southwestern Life Insurance in Dallas during the latter company’s idle hours (EDS would not acquire its own computer until 1965). Once he sold this time at retail, he was in business.
EDS began establishing Medicare and Medicaid claims processing systems in 1965.
At that time, Lester M. Alberthal, Jr., became president and CEO. He had joined EDS as a systems engineer trainee in 1968.
In 1968, prompted by an employee’s question about the worth of the company’s stock, Perot began to investigate the advisability of a public stock offering.
The stock traded over the counter until 1971, when the company was listed on the New York Stock Exchange.
In 1975 the company began to aggressively pursue overseas business.
Revenue growth slowed again in 1977 to 13 percent.
EDS maintained that Schaefer filed the suit to avoid payment of more than $1.2 million owed to EDS. In the 1978 out-of-court settlement, EDS paid Schaefer Corporation $2.3 million and retained $1.3 million already paid by Schaefer.
However, Perot voided the contract with Iran in 1978 after the Iranian government failed to make payments for six months.
With the purchase of Potomac Leasing in 1979, EDS moved into federal government contract work.
The system became known as Army Standard Information Management Systems (ASIMS). In June of 1984, General Motors Corp. paid $2.8 billion for EDS, completing the most costly purchase to date for a computer services company.
Although EDS revenues increased substantially, profit margins fell to 5.5 percent in 1985.
Although sales had tripled by 1985, after just one full year under General Motors' ownership, net income fell by over 5 percent.
In 1986 General Motors acquired Perot's remaining interest in EDS for $700 million, ending Perot's affiliation with EDS and General Motors.
In 1988, Fortune magazine named EDS as the leading diversified services company in the United States.
By 1990 EDS was the largest insurance data processor in the country.
In 1991, Stratus Computer began working with EDS Personal Communications Corp. on developing a Home Location Register (HLR) system for the burgeoning cellular telephone industry.
In 1992 total revenue reached $8.2 billion, with net income at $636 million; the following year, revenue climbed to $8.6 billion, with a net income of $724 million.
Total revenue for 1994 reached $9.96 billion, with a net income of $821.9 million.
Merger negotiations between EDS and long-distance telephone service provider Sprint Corp. dissolved in 1994.
In January 1995, EDS signed a $350 million outsourcing agreement with American Express Bank Ltd. of New York and acquired A.T. Kearney, a global management consulting firm located in Chicago, for approximately $600 million.
In August of 1995, General Motors revealed its intent to spin off EDS as the largest independent computer services firm in the world.
In June 1996, the company was spun off from GM and became an independent company once again, triggering two years of restructuring, including related costs.
In June of 1996, EDS stock was listed on the New York Stock Exchange after General Motors finalized its spin-off of the firm.
BellSouth Telecommunications selected EDS for its $4 billion computer systems operation contract in 1997.
Early in 1998, the company began working with Italy's Ministry of Education to help update their information technology infrastructure and help decentralize power and responsibilities from central government to peripheral offices.
During Alberthal's tenure, net sales grew from $4 billion to $16.9 billion, with a 1998 net income of $743.4 million.
Alberthal resigned as CEO and chairman, and was succeeded by Richard H. Brown in early 1999.
Decreased earnings in 1999, due in large part to increased competition and rising costs, prompted the firm to undertake a $1 billion reorganization effort which resulted in the layoff of 13,000 employees.
Sales continued to grow, and profits more than doubled, reflecting the success of cost cutting measures launched by Brown in 1999.
In 2000, EDS purchased France's Captimark Corp., a customer service management systems provider.
On July 2, 2001, EDS purchased the airline infrastructure outsourcing business and internal IT operational assets of Sabre Holdings Corporation for $676 million, providing EDS with airline outsourcing contracts with American Airlines, US Airways, and other major airline industry clients.
spagat, elliot. "eds says profit fell 21%, revenue will fall short." the wall street journal, 23 april 2002.
On August 31, 2002, EDS acquired all outstanding shares of Structural Dynamics Research Corp. for $840 million, followed by the acquisition of the publicly held shares of Unigraphics Solutions Inc. for $174 million.
Analysts express mixed opinions regarding EDS. After the company reported double-digit growth for the tenth consecutive quarter in the first quarter of 2002, analysts acknowledged that EDS was effectively increasing its contract bookings and outsourcing business.
EDS, which promotes a creative and fun working environment, opened a new office facility in Troy, Michigan, in early 2002.
EDS agreed to pay General Motors $500 million and provide computer services at a discount until 2006.
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EDS Electronic Financial Services Inc may also be known as or be related to EDS ELECTRONIC FINANCIAL SERVICES INC and EDS Electronic Financial Services Inc.