EDS CEO: Expect Growth To Continue

EDS

Although sales bookings were off slightly in the most recent quarter, Brown said EDS delivered its third best quarter in its 40-year history.

Brown conceded that he was not pleased with the bookings in the fourth quarter but said he would not blame it on "September 11 and how difficult it was in the marketplace."

"We had some important contracts we did not close," he said. "We didn't lose them, we just didn't close them. They are still alive and out there."

Brown pointed out that EDS increased its sales force by 50 percent in the fourth quarter and has launched an aggressive "Project Next-Level initiative" to increase the sales reps' capacity to win new business and close sales faster.

"We will gain substantial traction from this effort," he promised analysts. "We have signed more than $60 billion of business in the last 24 months. Our pipeline is the highest it has ever been."

EDS does not disclose its win rate against major competitors such as IBM Global Services, but Brown said EDS is doing very well with its win rate in the Project Next-Level initiative.

Furthermore, he said the pipeline of business is "more credible" because it has been "scrubbed."

"What kind of company has that kind of vision and annuity stream into the future?" Brown asked analysts.

Brown said EDS' sales force is the strongest in its history. He stressed that EDS is bringing up to speed "a lot of experienced, talented players" and getting them in "fighting form."

"We are raising the bar to the quality of people we recruit and select, and de-selecting those who just don't make it," he said.

"Judge us by our results," Brown added. "Worry about a business that does not change. That is when your red lights ought to go on."

Brown stressed that the company's accounting practices are conservative, with no hidden debt or liability.

"It is important you know that beyond a doubt you really have no reason to be apprehensive where EDS is involved," he said.

Brown said he is "100 percent confident and comfortable" with the company's accounting practices.