computer sciences FY 2000 Q3


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computer sciences FY 2000 Q3

  1. 1. Investor Relations 3rd Quarter Fiscal 2000 Third Quarter Fiscal 2000 ( Ended December 31, 1999) Earnings Summary Research Coverage Financial Highlights CSC's Business EARNINGS SUMMARY Computer Sciences Corporation “We are pleased with this quarter’s excellent performance given the dramatic demand shifts for information helps clients in industry and technology services during the latter months of calendar 1999. The benefits from recent new business awards government use information and acquisitions and our focus on aggressive cost containment provided strong support for achieving our technology to achieve strategic financial results for the second half of calendar 1999. More specifically, we announced $3.5 billion in new and operational objectives. With 54,000 employees in more than business awards during the third quarter. Including awards through January 2000, CSC’s year- to-date total is 700 offices worldwide, the $9.6 billion, compared with $5.1 billion, excluding the IRS award, for all of fiscal 1999.” company tailors solutions from a broad suite of integrated service Van B. Honeycutt offerings, including e-business Chairman, President and Chief Executive Officer strategies and technologies; Computer Sciences Corporation management and I/T consulting; systems development and Computer Sciences Corporation reported earnings per share, before special items, of 66 cents (diluted) for its fiscal integration; application software; and I/T and business 2000 third quarter, a 20% increase over the restated 55 cents for the same period last year. After special items, process outsourcing. consisting principally of merger-related charges and other transaction costs, earnings per share were 48 cents on a diluted basis. The special items total $41.1 million ($29.8 million after income taxes), or 18 cents per share Since its formation in 1959, CSC (diluted). All previous period results have been restated to reflect the November 16, 1999 merger with Nichols has been known for its flexibility in its relationships with clients. Research Corporation, accounted for as a pooling of interests. Through numerous agreements with hardware and software Revenues for the third quarter were up 14.9% (17.3% before the pooling of interests) to $2.4 billion compared with technology firms, the company is the $2.1 billion for the prior-year period. Global commercial revenue rose 17.4%, while U.S. commercial revenue able to identify and manage grew 10.7%. solutions specifically tailored to each client's needs. Nichols’ revenue of $100 million for CSC’s fiscal 2000 third quarter ended December 1999 is compared to Nichols’ fiscal 1999 third quarter revenue of $127 million for its March to May period. As a result, a seasonally CSC had revenues of $9.1 billion for the 12 months ended lower quarter for Nichols is compared to its strongest quarter of the prior year. December 31, 1999. CSC continues to see a rapid acceleration in requests for integrated e-business solutions, and anticipates these (1 of 6) [03/29/2001 9:35:08 PM]
  2. 2. Investor Relations 3rd Quarter Fiscal 2000 activities for fiscal 2000 to grow three-fold over last year. CSC’s third quarter revenue from the U.S. federal government accelerated strongly, growing 7% (13.6% before the pooling of interests) to $543.8 million from last year’s $508.2 million. The growth was fueled by a 14.9% increase from CSC’s civil agency business while Department of Defense (DoD) related revenue increased 2.8%. (Before the Nichols merger, the growth rates for the civil agency and DoD-related revenue were 16.1% and 12%, respectively.) CSC’s federal market pipeline of opportunities over the next 27 months is approximately $30 billion, greater than it has ever been for this period of time. Within the federal environment, modernization and commercial best practice opportunities, including the transition of federal employees to the private sector, are likely to become an important part of the government’s I/T strategy. CSC is positioned exceptionally well to capture a large share of this market. CSC’s European revenue for the quarter was $654.3 million, up 7.5% over last year’s $608.5 million, and was impacted adversely by 2.5 percentage points due to currency fluctuation. Importantly, growth in other international markets was a robust 113.6%, driven by last year’s fourth-quarter acquisition of Singapore-based CSA Holdings and solid gains from CSC Australia. These markets continue to show excellent demand for CSC’s broad range of I/T services. 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 INCLUDE: United Technologies Corp. (UTC) – -- Under a master agreement with UTC, CSC has signed additional contracts with two units of UTC, Hamilton Sundstrand and Pratt & Whitney Canada. For Hamilton Sundstrand, CSC will manage mainframes, servers, and the help desk, local area networks and about 8,100 desktop units. For Pratt & Whitney Canada, CSC will manage applications, a central help desk, midrange computers, network operations, 6,000 desktop units. General Electric Company (GE) -- CSC signed an I/T outsourcing agreement with GE to manage the data processing operations, help desk and disaster recovery services for GE and GE Capital in the UK and other European countries. In addition, CSC acquired the Australian operations of GE Capital ITS, a leading supplier of commercial and government organizations. Saturn -- - CSC led a team of companies chosen by General Motors' Saturn Corporation to build the auto industry's first customer-driven web-based retail management system. Saturn is the first to bring together leaders in I/T, automotive systems and e-business software to build a system that will make car buying simple and flexible for customers. (2 of 6) [03/29/2001 9:35:08 PM]
  3. 3. Investor Relations 3rd Quarter Fiscal 2000 Raytheon Company -- CSC signed an agreement with Raytheon to manage a significant portion of Raytheon's I/T infrastructure, including mainframes and data centers. CSC also will assume management of help-desk support serving 90,000 users and network operations that include voicemail and telecommunications. U.S Army -- CSC has been awarded the U.S. Army Wholesale Logistics Modernization Program (WLMP) contract. This continues a trend by U.S. federal agencies to turn to the private sector to obtain best commercial practices. CSC will reengineer and modernize the Army's wholesale logistics business processes to support the client's vision for the next millennium. Old Mutual Alliance -- Old Mutual, South Africa's largest financial services firm, has contracted with CSC to acquire and manage their I/T infrastructure including mainframe and midrange computers, servers, desktops, help desk and system software support. This agreement makes CSC a leading I/T services provider in South Africa. INVESTMENT DATA NYSE: CSC Recent Closing Price: 90 3/4 (2/7/2000) 52-Week Range: 52 3/8 - 94 15/16 Shares Outstanding: 166.6 million Registered Shareholders: 8,781 Institutional Ownership: 76% Average Daily Trading Volume: 3rd Quarter FY 2000 - 859,270 Market Cap: $15.0 billion (3 of 6) [03/29/2001 9:35:08 PM]
  4. 4. Investor Relations 3rd Quarter Fiscal 2000 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 (Bob St. Jean) Lehman Brothers (Karl Keirstead) Merrill Lynch (Steve McClellan) Morgan Stanley DW (David Togut) PaineWebber (Andrew Burns) SG Cowen & Co. (Moshe Katri) Salamon Smith Barney (Pat Burton) Sound View Financial Group (Gary Helmig) Standard & Poors (Brian Goodstadt) Value Line (Ray Cowen) (4 of 6) [03/29/2001 9:35:08 PM]
  5. 5. Investor Relations 3rd Quarter Fiscal 2000 (5 of 6) [03/29/2001 9:35:08 PM]
  6. 6. Investor Relations 3rd Quarter Fiscal 2000 SHAREHOLDER SERVICES Registrar and transfer agent- q ChaseMellon Shareholder Services For more information regarding CSC: P.O.Box 3315 q Shareholder services and literature S. Hackensack, NJ 07660 request line- USA (800) 542-3070 q Facsimile service- (201) 329-8660 (800) 962-7328 (800) 526-0801 q Website- CSC Investor Relations - q Bill Lackey, Director, Investor Relations q CSC Headquarters- (310) 615-1700 2100 East Grand Avenue Lisa Runge, Manager, Investor Relations El Segundo, California 90245, USA (310) 615-1680 (310) 615-0311 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 December 31, 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. (6 of 6) [03/29/2001 9:35:08 PM]