FARMINGTON HILLS ? IT consultant Covansys Corporation provided some guidance Tuesday on its delayed third-quarter financial results held up by an accounting review – net income of 30 cents a share, income from operations of $15 million and revenue of $112.5 million.

The company said it will not be able to finalize its third-quarter results

until the ongoing accounting policy reassessment is completed. The review was undertaken at the request of the company’s independent auditors and relates to certain fixed-price and multiple element contracts, most of which were divested as part of the sale of the company’s state and local government business during the second quarter of 2006.

“We appreciate the patience of our investors as we continue our reassessment

Process,?? said Covansys CEO James Trouba. ?The accounting rules regarding the fixed-price and multiple element arrangement contracts are complex. While we and our auditors are reassessing our accounting policies for these contracts, it is important to highlight that our business fundamentals are strong, our operations remain profitable and we do not expect our balance sheet to be materially impacted by the outcome of this reassessment. We look forward to resolving this historical accounting matter as expeditiously as possible and to continuing our successful initiatives to enhance margins, expand our operations and create additional value.?

Other preliminary statistics show:

The repurchase of approximately 653,000 shares of Covansys common stock

during the quarter at a total cost of $10.5 million;

Cash and short-term investments of $102.1 million as of

September 30, compared with $114.6 million at the end of the

second quarter of 2006-due in part to the company’s repurchase of its

common stock;

An increase in total headcount in the third quarter to 8,400, up from

approximately 8,000 consultants and employees at the end of the second

quarter;

Cash from operations of $17.9 million for the nine months ended

September 30.

Domestic utilization was 85.9 percent in the third quarter of 2006, up from

85 percent in the third quarter of 2005 and down from 87.7 percent last quarter.

Utilization in India was 80.3 percent for the third quarter, up from 75.2 percent in the third quarter of 2005 and 78.1 percent in the second quarter of 2006.

The foregoing preliminary operating results were prepared based on the

consistent application of the company’s historical accounting policies. The

company cautioned that final third quarter results may differ materially

from this preliminary financial information.