May 24, 2005 (01:05 PM EDT)
CSC Increases Sales Nearly 8% In Fourth Quarter
Read the Original Article at InformationWeek
Computer Sciences Corp., the third-largest provider of IT and business-process-outsourcing services, on Tuesday reported that sales from continuing operations in its fiscal fourth quarter rose 7.9% year over year to $3.88 billion. Net income, including one-time gains from the sale of parts of its Dyncorp federal-services unit, rose 116% to $411.8 million. Per-share earnings, which also include the one-time gain, rose from $1.01 in the year prior to $2.13.
CSC officials say an uptick in spending on short-term, discretionary IT projects helped bolster its fourth-quarter numbers. The company also noted that fourth-quarter major contract signings totaled $2.7 billion, more than double the previous year's total.
For fiscal year 2005, ended April 1, CSC said revenue increased 5% to $14.06 billion. Net income, including one-time gains, rose 56% to $810.2 million, while earnings per share jumped 54% to $4.22.
CSC said it expects to post total revenue for the current fiscal year of between $15 billion and $15.2 billion. However, in a Securities and Exchange Commission filing disclosed last week, the company said it might have to take a charge against earnings to cover costs associated with the termination of a long-term outsourcing deal with Sears Holdings Corp.
Sears terminated the 10-year, $1.6 billion agreement earlier this month for what it says was CSC's failure to perform certain services. CSC claims the retailer was looking for an excuse to exit the deal following its merger with Kmart.
This story was updated May 25.