CSC exceeds expectations in Q4

IT services provider Computer Sciences easily exceeded analyst expectations in its fourth financial quarter of 2002, ended 29...

IT services provider Computer Sciences easily exceeded analyst expectations in its fourth financial quarter of 2002, ended 29 March, the company said yesterday.

The company attributed the positive results to solid revenue growth related to its business with the US federal government and to its outsourcing activities in North America and Europe, and to overall cost reductions in its operations.

CSC closed the quarter with net income of $141.1m (£97.4m), or 82 cents per diluted share. The consensus estimate from analysts polled by Thomson Financial/First Call was 77 cents per share.

CSC had a net loss of $37.4m, or 22 cents per share, in the fourth quarter of fiscal 2001. That quarter's net loss included a charge of 54 cents per diluted share, which included employee severance costs and write-offs related to consolidation of facilities, among other things.

Revenue came in at $3.05 bn, a 5.1% increase over the fourth fiscal quarter of 2001, said CSC.

Revenue from US federal government business grew 18% to $834.5m. CSC's clients in this sector include the US Internal Revenue Service, the US Immigration and Naturalisation Service and the US Department of Defence, which by itself accounted for $528.5m of CSC's quarterly revenue.

The company estimates that the US federal government will increase its spending on information systems and services at a 10% annual clip over the next several years.

For the entire fiscal year 2002, CSC had revenue of $11.4bn, up 8.6% over fiscal 2001, while net income came in at $344.1m, or $2.01 per share.

In 2002, more than 70% of CSC's revenue came from US federal government business and from commercial outsourcing, the company said.

CSC's stock closed up 5.73% at $41.50 yesterday. The company has about 67,000 employees worldwide.

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