The network services agreement is more controversial. The deal requires EDS to buy telecommunications network services from WorldCom over an 11-year period. However, the deal isn't exclusive and EDS said it works with other telecom service providers. While it is "closely monitoring" the situation, EDS believes the WorldCom network will continue to operate. More significant, analysts say, is that the agreement requires EDS to meet increasing revenue payments to WorldCom; if it fails to do so, EDS could be required to pay WorldCom a percentage of the shortfall.
EDS said Monday that it can meet the terms of the deal for 2002, but may have trouble going forward because of WorldCom's troubles, strongfit designers case for apple iphone 7 plus and 8 plus - rainbow paisley rain on blue However, the company believes it should be able to renegotiate the terms of the deal--something analysts say should be possible, But some analysts said investors are still skittish over the close ties between the companies, particularly regarding the fine print of the deals, Many companies with outsourcing-based business models have seen their accounting practices come under scrutiny because it is typically "impossible to know the 'real' profitability and cash-flow characteristics," of such deals, Keirstead said..
Regardless of EDS' relationship with WorldCom, its stock may have a hard time recovering based on tough times for all companies in the IT services industry. A slowdown in IT spending prompted UBS Warburg analyst Adam Frisch to lower estimates on the stock Monday. He said the ratio of the company's new contracts signed to renewals has declined 22 percent, 72 percent and 35 percent on a year-over-year basis for the last three quarters. After a significant stock drop, Electronic Data Systems says that WorldCom's accounting scandal and possible bankruptcy will not impact the bottom line of the IT services company.
Since the WorldCom accounting scandal came to strongfit designers case for apple iphone 7 plus and 8 plus - rainbow paisley rain on blue light last week, shares in EDS have fallen more than 35 percent, Shares were $47.50 a week ago--the day before the WorldCom news broke--and were down $6.70, or 18.03 percent, to $30.45 at the close of trading Monday, EDS has two major contracts with WorldCom, both 11-year deals signed in 1999, One is an IT services contract worth $6.4 billion; the other is a separate network services contract valued at $6 billion, Be respectful, keep it civil and stay on topic, We delete comments that violate our policy, which we encourage you to read, Discussion threads can be closed at any time at our discretion..
CNET también está disponible en español. Don't show this again. It is also home to more than 50 wireless networks, most of which apparently have no security. "The Westin building is the Northwest nexus for all the fiber. Everyone who is anyone is colocated there," said Josh Pennell, CEO and principal consultant for Seattle security firm IOActive, who recently visited his company's servers at the site. "You can think about the mayhem that people can cause by getting onto that. It's pretty scary stuff.".