Computer Sciences (CSC) saw its earnings and revenue grow in the first quarter, thanks largely to strong sales...
to the US government.
CSC closed the quarter ending 4 July with $3.55bn in revenue, up 29.1% from the same period last year.
Net income came in at $92.3m, up from $79m for the same period the previous year.
Revenue from the US federal government grew 87.1% during the quarter, boosted by CSC's acquisition of DynCorp, which closed in March. CSC's US federal government revenue reached $1.48bn, or 42% of the quarter's total revenue.
Global revenue from the commercial sector rose 5.7% to $2.07bn. US commercial-sector revenue fell 3.4%, while European revenue rose 20.7%. CSC said its consulting and systems integration business stabilised in North America, but not in Europe and Asia.
CSC expectedrevenue for its second quarter, which ends on 3 October to grow between 27% and 29%. The forecasts exclude special charges related to the DynCorp purchase.
The first-quarter DynCorp charge is related to the write-off of equipment unable to support the integration of the two companies. More acquisition-related charges are expected to surface in coming quarters and unlikely to exceed $16m.
Juan Carlos Perez writes for IDG News Service