May 25, 2007 (09:05 AM EDT)
CSC Delays Financial Results, Names New CEO

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Outsourcer Computer Sciences Corp. said Thursday that it would delay filing its financial results for its 2007 fiscal year.

In a statement, the company said it needs more time to account for the tax implications of certain business transactions completed in previous periods. It said the results will be announced shortly but did not specify a date.

CSC also said that longtime company leader Van Honeycutt, 62, is stepping down as CEO but will retain his post as chairman. He will be replaced as chief executive by current president and chief operating officer Michael Laphen, 56.

Laphen, a 20-year CSC veteran, will also continue in his role as president. He was formerly chief executive of CSC's European Group.

CSC said additionally that preliminary, unaudited company estimates for current fourth-quarter revenue are expected to be in the range of $4.0 billion to $4.1 billion, and earnings per share will fall between $1.51 to $1.61.

The EPS estimates exclude the impact of net restructuring charges, the expense or impact related to an ongoing stock option investigation and litigation, and the impact of any adjustment related to the prior-period income tax issues, CSC said.

Additionally, the company announced that free cash flow for the fiscal year 2007 will exceed its previous guidance of $400 million to $500 million, excluding payments for restructuring activities. CSC said it currently estimates the range to be $840 million to $860 million.