Affiliated Computer quarterly profit up 7.7 pct
NEW YORK (Reuters) - Affiliated Computer Services (ACS.N) reported on Thursday higher quarterly profit on stronger performance in its commercial and government units, but fell short of Wall Street expectations.
The results came a day after private equity firm Cerberus Capital Management CBS.UL rescinded its $6.1 billion takeover offer and on the same day that five directors said they would resign, while rejecting an allegation by the company's chairman that they failed to look out for shareholder interests.
The provider of outsourcing and information technology products posted first-quarter fiscal 2008 net income of $66.1 million, or 65 cents a share, up 7.7 percent from $61.4 million, or 59 cents a share, in the first quarter a year ago.
The company reported earnings before special items of 77 cents a share.
Charges included 10 cents a share for legal costs and other expenses related to an ongoing stock options investigation, as well as shareholder derivative lawsuits and a board committee's review of the company's alternatives, including a sale.
They also included a charge of 2 cents per share related to employee amended stock options and former employee income tax reimbursements.
Revenue rose 8 percent to $1.49 billion.
Analysts were expecting profit of 84 cents a share on revenue of $1.49 billion, according to Reuters Estimates.
(Reporting by Robert MacMillan)
