Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Kathryn Huberty - Morgan Stanley
Kathryn Huberty - Morgan Stanley
The rate of deceleration in BRIC countries was particularly alarming, could you just talk about whether you did anything on the financing front or with channel inventories that exaggerated the down tick and maybe just touch on whether you’ve seen a stabilization in demand in areas like China where there is some government rebates going into place.
Mark Hurd
No we didn’t do anything to accelerate the deceleration. I would tell you that what we have seen is very [inaudible]. Its sort of remarkably consistent across the markets. There are a couple of exceptions, Brazil was an exception but the rest of the BRIC companies behaved pretty uniformly. I would say in China to your point we see a [pail] that’s a little different. We see a little more, I’ll use the term negativity in our softness [inaudible] enterprise. So to your point about some of the things that would have been done in China we do see some impact on the enterprise segment.
We really did nothing to decelerate that. Russia was a particular issue in the quarter. Those that did well [inaudible] and we certainly saw that in Russia as well.
Operator
Your next question comes from the line of Richard Gardner - Citigroup
Richard Gardner - Citigroup
The question is on EDS, you talked about cost synergies related to the deal being ahead of planned but can you talk about revenue dis-synergies and how that’s trending versus your expectations. It did look like revenue for EDS was much lower then we expected in the quarter given a full quarter benefit there.
Catherine Lesjak
If you actually look at EDS on a combined company basis, getting them in the base for last year and also this year for the quarter revenue declined roughly 15%. About half of that drop was due to currency so they have a significant exposure, or we have a significant exposure to the British pound where EDS was strong in the UK and so we were definitely hurt by that. There was also a few points of headwinds related to the accounting policy and convergence and purchase accounting and that was probably slightly behind what we had anticipated. And then we had, the rest was basically real demand declines and that was predominantly in the area of application services where there are more discretionary services that we sell.
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