Computer Sciences enjoys earnings boost

Computer Sciences (CSC) saw its earnings and revenue grow in the first quarter, thanks largely to strong sales to the US...

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

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