ACS Announces Fourth Quarter and Fiscal Year 2007 Results; Company Generates Record Revenues and Cash Flow in Fourth Quarter

Affiliated Computer Services, Inc., today announced fourth quarter fiscal year 2007 revenues of $1.52 billion, a 10% increase compared to the prior year quarter. The Company's internal revenue growth rate for the quarter accelerated to 7%.

Fourth quarter fiscal year 2007 adjusted non-GAAP diluted earnings per share was $0.88, a 21% increase over the prior year fourth quarter adjusted non-GAAP diluted earnings per share of $0.73. See "Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" below.

Fiscal year 2007 revenues were $5.77 billion. Excluding the divestiture of the Welfare to Workforce Services ("WWS") business, total revenue growth was 10% compared to the prior fiscal year. The Company's internal revenue growth rate for the year was 5%.

Fiscal year 2007 adjusted non-GAAP diluted earnings per share was $3.12, an 11% increase over the prior year adjusted non-GAAP diluted earnings per share of $2.80. See "Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" below.

Fourth quarter operating cash flow and free cash flow were both company records. Cash flow from operations for the fourth quarter of fiscal year 2007 was approximately $343 million, or 23% of revenue. Free cash flow during the fourth quarter was approximately $253 million, or 17% of revenue. This quarter's record cash flow results were primarily driven by improved accounts receivable collections and overall working capital management.

Lynn Blodgett, ACS' President and Chief Executive Officer, said, "I am proud of our dedicated employees and their efforts that drove our strong finish to the year. Despite non-operational distractions, we generated record company revenues for the year, significantly improved our client renewal rates, and enjoyed outstanding cash flow results. We are focused on running our business, growing revenues and profit, and emphasizing innovation in our offerings.

Source: CNN Money