The contract extension is worth AU$300 million and lasts two years. EDS have been providing services to the ATO under an existing five year contract that commenced in mid 1999. That contract was worth AU$500 million.
The company's stock price went into free-fall after they released a profit warning in September last year, slashing their third quarter earnings forecast by80 percent . The EDS share price plummeted to around 25 percent of its september high.
The list price fell from around US$40 to a low of US$10.09, a far cry from their 52 week high of US$55.69. They are currently trading at US$17.04.
Despite this, corporate communications manager for EDS Australia, Brian Finn, remains up-beat.
"We've reassured our clients and the market since that warning that we remain profitable... we're very robust," he told ZDNet Australia.
The ATO have remained positive also, ATO first assistant commissioner of technology, Peter Wilson sang the outsourcer's praises in a statement.
"The ATO and EDS have established an excellent working relationship in support of the delivery of ATO business outcomes. I look forward to a further two years of quality service delivery," it said.
The contract covers the management and provision of mainframe services, data warehousing, desktop systems, midrange servers, laptops and printers as well as help desk and associated services.
