Shares of Electronic Data Systems Corp. fell $4.375 Friday, to $38.625, after the company reported less than stellar earnings for the first quarter.

The Plano, Tex.-based outsourcer showed net income of $211 million, up 8.8% from a year earlier, on revenues of $3.9 billion, up 14.5%. Though revenue growth was the fastest since the third quarter of 1996, the "quality of the earnings was lousy," said Karl Keirstead, analyst at Lehman Brothers. EDS sold about $40 million of assets to "juice up" earnings, he said.

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