CSC Reports Solid First Quarter Results -
EPS Up 8% - 6th August, 2009
FALLS CHURCH, Va., - CSC today reported first quarter 2010 revenue of $3.9 billion and fully
diluted earnings per share (EPS) of $0.85, compared to first quarter 2009 revenue of $4.4 billion
and EPS of $0.79. Highlights include:
* New business awards of $3.5 billion;
* Revenue of $3.9 billion, down 12.2% from the previous year (down 6.2% in constant currency);
* Operating margin of 6.81%, a 46 basis points improvement from the previous year;
* EPS for the first quarter of $0.85 including a tax benefit of $0.11 per share;
* Operating cash flow of -$297 million;
* Free cash flow of -$462 million.
Commenting on the results, CSC Chairman and Chief Executive Officer Michael W. Laphen
said, "We experienced another strong quarter of earnings improvement while also meeting or
exceeding our other key financial targets for the quarter."
"We remain committed to our revenue guidance for fiscal year 2010," Laphen said. "We
anticipate modest improvement in the economy which should drive an increase in short-term
projects during the second half of our fiscal year. Long-term opportunities in our pipeline
position us for growth in both our public and commercial sectors."
The company has enhanced its market position with several important strategic actions this
* The investment in global cyber security and trusted cloud computing positions the company in
these expanding markets. The company's recently-announced cloud computing alliance with
Microsoft further enhances these business prospects.
* The company has consolidated its application management services business, including all
offshore activities, and the Global Outsourcing Services business (GOS), into its Managed
Services Sector (MSS) unit. The new MSS organization will enable better client service delivery
and sales efficiency by leveraging CSC's over 30,000 application professionals servicing all of
key enterprise solutions globally.