<PAGE>
=====================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported) May 19, 1997
ELECTRONIC DATA SYSTEMS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 01-11779 75-2548221
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
5400 Legacy Drive
Plano, Texas 75024-3105
(Address of principal executive offices,
including zip code)
Registrant's telephone number, including area code (972) 604-6000
=====================================================================
<PAGE>
Item 5. Other Events.
On May 19, 1997, Electronic Data Systems Corporation, a
Delaware corporation, issued the press release attached as Exhibit
99(a) hereto.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit
Number Description of Document
------- ----------------------------------------
99(a) Press Release of Electronic Data Systems
Corporation dated May 19, 1997.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
ELECTRONIC DATA SYSTEMS
CORPORATION
By: /s/ D. Gilbert Friedlander
--------------------------
Name: D. Gilbert Friedlander
Title: Senior Vice President
May 19, 1997
3
<PAGE>
EXHIBIT 99(a)
CONTACT: Jon Senderling - EDS
(972)605-6790
[email protected]
For release 3:15 p.m. CDT Monday, May 19, 1997
EDS ESTIMATES RANGES OF SECOND-QUARTER
EARNINGS PER SHARE AND EXPECTED CHARGE
Company briefs security analysts on extensive market opportunities
- ----------------------------------------------------------------------------
PLANO, Texas -- EDS, in conjunction with the information services company's
annual meeting of security analysts at its global headquarters here, today
estimated that it would achieve earnings per share of $0.43 to $0.45 in
the second quarter before adjusting for a previously announced, non-recurring
charge.
Company officials also told the more than 200 security analysts attending
the two-day meeting that they expect earnings to improve in the second half
of the year as the result of both cost-cutting efforts and the extensive
global market opportunities available to the company.
EDS said several months ago that it anticipated somewhat weaker financial
performance than analysts expected in both the first and second quarters
of 1997 but expressed confidence that the second half of the year would
be significantly stronger. Last month, EDS officials estimated that the
company would achieve earnings for 1997 in the range of $2.30 to $2.35
per share before the charge.
As part of an enterprise-wide business transformation initiative that EDS
has launched to reduce costs, streamline its organizational structure and
align its strategy, services and delivery with market opportunities, EDS
has identified potential annual savings of between $500 million and $700
million. The company said today that it remained comfortable with its
$2.30-$2.35 earnings-per-share estimate for the year with the realization
of the targeted savings.
-1-
<PAGE>
Company officials told the analysts that they estimated the restructuring
charge EDS planned to take as a result of the transformation initiative
would be between $100 million and $250 million.
EDS officials emphasized to the analysts that the company has had three
consecutive quarters of strong new-contract signings and already has won
more than $2 billion in new business in the second quarter. They also
noted that EDS continues to have a robust pipeline of potential new-business
opportunities, many of which are expected to be awarded in 1997.
EDS officials pointed to several areas of strong growth the company is
experiencing in addition to its traditional outsourcing business.
- - Management consulting. EDS said its strategy for A.T. Kearney, the global
management consulting firm it acquired in September 1995, was realizing
synergies and benefits faster than anticipated and that A.T. Kearney was
continuing its record of growing twice as fast as the market. EDS said it
expected the firm to register fees in excess of $1 billion this year.
- - Year 2000. EDS officials said there was a "significant market upside"
for EDS in helping businesses and governments resolve the Year 2000 issue
- -- preparing computer systems for the new millennium -- and that several
major new business announcements were expected during the second quarter.
The company's CIO Services 2000 group expects to add 400 positions in the
next several months as a result of new business in systems conversions
and project management. An additional 1,000 positions are planned for
1998. The group reports a $1 billion-plus business pipeline as enterprises
begin to move aggressively to solve their "Year 2000" problem. Renovation
centers are already converting code at EDS headquarters in Plano and at
company facilities in Austin and Denver. Additional centers are planned
for Camp Hill, Pa., Dublin and Asia/Pacific.
- - Internet and new media. The market acceptance of EDS' interactive agency
for strategy design and development of websites for interactive marketing,
c2o Interactive Architects, has been exceptional and has created business
opportunities in the $400-million range in only four months. EDS estimates
its total current pipeline in the area of Internet and new media at $1.75
billion.
-2-
<PAGE>
EDS officials also said the company was rapidly expanding its business in
such areas as database mining, telemarketing services and call-center
operations. They cited the company's CustomerSolutions global strategic
business line, which is focused on partnering with EDS clients to deliver
tailored solutions that increase the clients' knowledge of their customers.
The statements in this news release that are not historical facts, including
those regarding 1997 earnings estimates, second-quarter earnings estimates,
the value of new business signings, A.T. Kearney's 1997 fees, market
opportunities and EDS' business transformation initiative and related
savings and one-time charges, are forward-looking statements within the
meaning of the federal securities laws. These statements are subject
to numerous risks and uncertainties, many of which are beyond EDS' control,
that could cause actual results to differ materially from such statements.
For information concerning these risks and uncertainties, please see EDS'
most recently filed Form 10-Q and the section on risk factors in the
company's most recent equity registration statement. EDS disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
EDS is a leader in the global information services industry. The company's
approximately 100,000 employees specialize in applying a range of ideas
and technologies to help business and government customers improve their
economics, products, services and relationships. EDS, which serves
customers in 42 countries, reported revenues of $14.4 billion in 1996.
The company is independent and publicly owned, and its stock is traded
on the New York Stock Exchange and the London Stock Exchange under the
symbol EDS. EDS can be visited via the Internet at http://www.eds.com.
-3-
