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ACS Q1 revenues increase to $1.68 billion

Operating income decreases to $130.3m

ACS has reported revenues of $1.68 billion for the first quarter of fiscal 2010, an increase of 5% compared to $1.6 billion in the prior year quarter. For the quarter, the commercial segment contributed to 61% of revenues and grew 6%, with 2% internal growth and the government segment contributed to 39% of revenues and grew 2%, all of which was internal.

First quarter new business signings totaled $212m of annual recurring revenue with an estimated total contract value of $833m. Total contract value of all signings, including new business signings, renewals and non-recurring revenue, was $1.5 billion. From a service line perspective, business process outsourcing contributed 79% of new business signings and 21% was from information technology outsourcing.

Operating income was $130.3m for the first quarter of fiscal 2010, compared to $172.7m for the same period in the prior year. For the quarter, the company reported a net income of $68.79m or an EPS of $0.7 compared to $83.6m or EPS of $0.85 in the year ago quarter.

On September 27, 2009, ACS and Xerox executed an agreement and Plan of Merger pursuant to which ACS would be acquired by Xerox. The agreement was approved by the board of directors and is subject to certain closing conditions. Those conditions include the expiration of the waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976 and approval of ACS stockholders.

Due to ACS’ proposed merger with Xerox, ACS will not be updating prior financial guidance or providing financial guidance for the second quarter or fiscal year 2010.