computer sciences FY 2000 Q2


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computer sciences FY 2000 Q2

  1. 1. Investor Relations 2nd Quarter Fiscal 2000 Second Quarter Fiscal 2000 ( Ended October 1, 1999) Earnings Summary Research Coverage Financial Highlights CSC's Business EARNINGS SUMMARY Computer Sciences “CSC’s wide range of services, business diversity and large base of long-term Corporation helps clients in contracts enabled the company to deliver solid quarterly results in a industry and government use Y2K-impacted information technology market. In the first half of fiscal 2000 information technology to we announced a total of $5.3 billion in new awards -- more than the $5.1 achieve strategic and operational objectives. With billion total, excluding our IRS award, announced for all of last year. We 54,000 employees in more continued to enjoy significant demand for outsourcing and other services, than 700 offices worldwide, and we are seeing a rapid acceleration in requests for our integrated the company tailors solutions e-business solutions.quot; from a broad suite of integrated service and Van B. Honeycutt technology offerings, including e-business strategies and Chairman, President and Chief Executive Officer technologies; management and Computer Sciences Corporation I/T consulting; systems development and integration; Computer Sciences Corporation earnings per share for its fiscal 2000 second application software; and I/T quarter rose 22.2% to 55 cents per share (diluted) from 45 cents per share for and business process the comparable quarter last year. outsourcing. Net income for the quarter increased 22.7% to $89.6 million from the $73 Since its formation in 1959, CSC has been known for its million reported a year ago. Revenues for the second quarter were up 15.1% to flexibility in its relationships $2.13 billion compared with the $1.85 billion for the prior year period. with clients. Through numerous agreements with Strong growth in global commercial revenue, up 19.2%, and improved hardware and software operating performance were the principal contributors to the net income gain. technology firms, the company U.S. commercial revenue growth benefited from strong contributions from is able to identify and manage solutions specifically tailored outsourcing awards announced earlier this year and from CSC’s healthcare to each client's needs. vertical. CSC had revenues of $8.2 CSC’s rolling 12 month net income margin, excluding special items, has billion for the 12 months improved for nine consecutive quarters. The company has exceeded its revenue ended October 1, 1999. budget for each of the first two quarters and is comfortably on plan to achieve approximately $9 billion of revenue for fiscal 2000, excluding the contribution from the previously announced Nichols Research transaction which will be accounted for as a pooling-of-interests. European revenue for the quarter rose 14.5% to $621.5 million from $542.6 million last year. The effect of currency fluctuations reduced European growth by about three percentage points. Last year’s fourth-quarter acquisition of Singapore-based CSA Holdings and a solid increase from CSC Australia drove the dramatic 63.1% growth in other (1 of 5) [03/29/2001 9:36:38 PM]
  2. 2. Investor Relations 2nd Quarter Fiscal 2000 international revenue to $195.4 million from $119.8 million. CSC’s revenues from the U.S. federal government rose 1.9% to $449.3 million from last year’s $440.9 million, and is consistent with the company’s expectation that fiscal 2000 full year federal growth will reach the mid-single digit range. Department of Defense (DoD) revenue declined slightly, reflecting the end of certain contracts. Civil agency revenues grew 9.3% as growth from other civil agencies more than offset expected NASA reductions. CSC ’s federal market pipeline of opportunities over the next 30 months is an extremely robust $22 billion and the overall market for information technology services to the U.S. federal government is as vital as it has ever been. Escalating e-business engagements place CSC well on the way to achieving a substantial increase in such revenues for fiscal 2000. The rapidly growing utilization of the Web to enhance the competitiveness and efficiency of clients presents abundant opportunities for CSC, which is uniquely positioned to offer end-to-end capabilities encompassing a balance of strategy, experience and technology. These exciting developments in e-business applications and solutions are being driven by the need of both public and private organizations to achieve higher levels of responsiveness, customer satisfaction and results. CSC's SERVICES ENCOMPASS THREE KEY AREAS: MANAGEMENT AND INFORMATION TECHNOLOGY CONSULTING Dramatically improve client organizations' operations. Often streamlines basic business processes. SYSTEMS DEVELOPMENT, AND INTEGRATION Design, develop and build information technology systems. Combine hardware, software and communications into more productive systems. OPERATIONS SUPPORT AND INFORMATION SERVICES OUTSOURCING Directly operate clients' information systems. CSC often acquires clients' systems and employees. RECENT ENGAGEMENTS INCLUDES: United Technologies Corp. (UTC) – -- CSC and United Technologies Corp., a Fortune 50 diversified manufacturer, have signed a new outsourcing agreement which incorporates a prior contract signed with Pratt & Whitney, UTC’s largest business unit. As part of the new contract, CSC will consolidate and streamline the I/T infra- structure for all of UTC’s North American information technology infrastructure. Hughes Electronics -- An original seven-year I/T outsourcing agreement announced in January 1995 with Hughes Electronics has been extended to December 2004. The agreement marks the second long-term outsourcing contract that a major client has chosen to extend with CSC and is indicative of the business value of outsourcing. San Diego County -- The Pennant Alliance, a consortium of companies led by CSC, has been selected to create a virtual government for the County of San Diego that will provide its citizens greater accessibility to County services. The selection of the Pennant Alliance culminates a 15-month competitive phase and represents the largest I/T outsourcing project carried out by a local government agency in the United States. U.S. Department of Education (DoE) -- CSC has been selected to provide data center operations and support to the Federal Family Education Loan System of the DoE’s Office of Student Financial Assistance. CSC will be responsible for migrating and consolidating data center operations in support of financial aid programs administered by the DoE. -- Through a strategic partnership, CSC will enhance the online trading and information platform of, a real-time, online trading exchange serving the $1.6 trillion global chemical industry. (2 of 5) [03/29/2001 9:36:38 PM]
  3. 3. Investor Relations 2nd Quarter Fiscal 2000 creates a pure market where buyers and sellers benefit from unprecedented market data, price transparency and access to a global pool of products -- 24 hours a day, seven days a week, from locations around the world. INVESTMENT DATA NYSE: CSC Recent Closing Price: 67 3/4 (11/01/99) 52-Week Range: 48 3/4 - 74 3/8 Shares Outstanding: 160.0 million Registered Shareholders: 8,843 Institutional Ownership: 75% Average Daily Trading Volume: 2nd Quarter FY 2000 - 595,036 Market Cap: $10.8 billion RESEARCH COVERAGE A.G. Edwards (Mark Jordan) Bear, Stearns (Jim Kissane) Brown Brothers Harriman (Greg Gieber) CS First Boston (Mark Wolfenberger) Donaldson, Lufkin & Jenrette (Thomas Rooney) ING Baring Furman Selz (Brian Maimone) Goldman Sachs (Greg Gould) J.P. Morgan Securities (Raimundo Archibold) Lehman Brothers (Karl Keirstead) Merrill Lynch (Steve McClellan) Morgan Stanley DW (David Togut) PaineWebber (Andrew Burns) SG Cowen & Co. (Moshi Katri) Sound View Financial Group (Gary Helmig) Standard & Poors (Brian Goodstadt) Value Line (David Rosenfield) (3 of 5) [03/29/2001 9:36:38 PM]
  4. 4. Investor Relations 2nd Quarter Fiscal 2000 (4 of 5) [03/29/2001 9:36:38 PM]
  5. 5. Investor Relations 2nd Quarter Fiscal 2000 SHAREHOLDER SERVICES Registrar and transfer agent- q For more information regarding CSC: ChaseMellon Shareholder Services q Shareholder services and literature P.O.Box 3315 request line- S. Hackensack, NJ 07660 (800) 542-3070 USA Facsimile service- q (800) 962-7328 (201) 329-8660 (800) 526-0801 Website- q Bill Lackey, Director, Investor Relations q CSC Headquarters- q (310) 615-1700 2100 East Grand Avenue Lisa Runge, Manager, Investor Relations q El Segundo, California 90245, USA (310) 615-0311 (310) 615-1680 Forward-Looking Statements All statements in this document that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the Company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the section titled “Forward-Looking Statements” in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 1999. [Return to Reports Screen] [Return to Investor Menu] [Top of Highlight] [About CSC] [Industries] [Solutions] [Career Opportunities] [Investor Relations] [Press Releases] [Contact CSC] [Search] [Home] Copyright © 2000 Computer Sciences Corporation. All rights reserved. (5 of 5) [03/29/2001 9:36:38 PM]