UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
October 4, 2006 (September 29, 2006)
PEROT SYSTEMS CORPORATION
(Exact Name of Registrant as Specified in its Charter)
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Delaware
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0-22495
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75-2230700 |
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.) |
2300 West Plano Parkway
Plano, Texas 75075
(Address of Principal Executive Offices) (Zip Code)
Registrants Telephone Number, Including Area Code:
(972) 577-0000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
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ITEM 2.06. |
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MATERIAL IMPAIRMENTS. |
On
September 29, 2006, Perot Systems Corporation ("Perot Systems") and Blue Cross &
Blue Shield of Rhode Island ("BCBSRI") entered into a mutually beneficial new contract accord. This
contract modification to the 10 year outsourcing relationship signed in 2003 relates primarily to
the implementation of a replacement for BCBSRIs existing LRSP system. The infrastructure,
applications and business process outsourcing portions of the relationship remain substantially the
same.
With the contractual changes:
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BCBSRI assumes control and gains flexibility over the selection,
customization and implementation of a system to replace its
current LRSP claims processing software, while obtaining a license
to Perot Systems Payer PÉRADIGM Enterprise Software. |
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Perot Systems and BCBSRI have ended the prior fixed price
arrangement under which Perot Systems was implementing a
replacement claims processing system for BCBSRIs existing LRSP
system. Under the fixed price implementation arrangement, Perot
Systems had recorded deferred costs of approximately $50 million,
which were expected to be amortized over the remaining term of the
contract. Because the contract modifications eliminate certain
deliverables, Perot Systems will write-down approximately $40
million of those deferred costs in the third quarter of 2006. In
addition, Perot Systems will pay to BCBSRI $12 million over four
years, which is a portion of the $19 million implementation fee collected in
advance of the implementation, but never recognized as revenue.
Revenue will not be materially impacted by the contract
modification and the contract is expected to be profitable in the
fourth quarter of 2006. In addition, Perot Systems will perform
future implementation services as requested under a new time and
materials contract arrangement. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: October 4, 2006 |
PEROT SYSTEMS CORPORATION
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By: |
/s/ Rex C. Mills
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Rex C. Mills |
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Assistant Secretary |
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