CSC posts preliminary results


CSC posts preliminary results

Antony Savvas

Computer Sciences Corporation has delayed posting full third quarter results as a result of its ongoing investigation into stock option grants.

For the quarter, CSC has reported a reduced preliminary net profit of £60.1m, and a slight increase in total group sales, which were £1.91bn. European sales were down 7%.

The company said revenues for the third quarter continued to be impacted by lower levels of outsourcing activity, primarily in Europe and the US.

In early January, CSC signed the final agreements to transfer the NHS Connecting for Health programme work in the north east and east of England to the CSC-led alliance, following Accenture’s withdrawal from the project.

The company already does similar work within the north west and west Midlands clusters.

“Our third quarter results were as expected, and with our restructuring efforts, we are well positioned for the future,” said CSC CEO Van Honeycutt.

A restructuring programme announced in April 2006 involves workforce reductions, mainly in Europe.

In future results, CSC is planning to take a charge to cover the wrongly accounted for stock options. CSC is one of a number of US companies having to modify or delay their full accounts because of stock option problems.

CSC claims swift progress in NHS contracts

Listen to a teleconference on the CSC results

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