Investor Relations 1st Quarter Fiscal 2001

Investor Relations 1st Quarter Fiscal 2001
      tailored to each client’s needs.       tangible business results – become...
Investor Relations 1st Quarter Fiscal 2001
              OMNIBUS 2000 Support Services program. Under the program’s three ...
Investor Relations 1st Quarter Fiscal 2001
      Value Line (George Niemond)
Investor Relations 1st Quarter Fiscal 2001

        SHAREHOLDER SERVICES                                               ...
Investor Relations 1st Quarter Fiscal 2001
         Forward-Looking Statements

         All statements in this document t...
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computer sciences FY 2001 Q1

  1. 1. Investor Relations 1st Quarter Fiscal 2001 First Quarter Fiscal 2001 ( Ended June 30, 2000) Earnings Summary Research Coverage Financial Highlights CSC's Business EARNINGS SUMMARY As one of the world’s leading Our expertise in the design, implementation and management of a broad range of fully integrated solutions, consulting and information customized for specific client needs, enhances our competitive position and supports our role as an information technology (IT) services firms, technology leader helping clients to quickly strategize and implement solutions to improve their results. CSC’s Computer Sciences Corporation years of experience in systems integration, outsourcing, and management and IT consulting ideally position the helps clients in industry and government achieve strategic company for success in the expanding e-business marketplace. and operational objectives through the use of technology. Van B. Honeycutt Having guided clients through Chairman, President and Chief Executive Officer every major wave of change in Computer Sciences Corporation IT for more than 40 years, CSC today is well positioned to Computer Sciences Corporation’s solid first quarter results for fiscal 2001 were driven by strong revenue growth develop and apply IT strategies and operating performance from its U.S. federal government, Asia-Pacific and commercial outsourcing activities. and technologies, particularly in the e-business area, based on its For the first quarter (ended June 30): revenues were $2.46 billion, an 11.8% increase over fiscal 2000 (up 15% in full range of capabilities in constant currency); net income increased 13.5% to $96.0 million; earnings per share (diluted) were 56 cents, up management and IT consulting; from 50 cents; and announced major new business awards were $3.3 billion. Geographic and vertical market systems development; operations diversification enabled CSC to take advantage of the more vigorous demand in some of the various markets served. support and information services The absence in the current year of the Year 2000-related revenue which was present during last year’s first quarter, outsourcing. coupled with the pace of the rebound in enterprisewide application demand, had a moderating influence on the first Since its formation in 1959, CSC quarter revenue growth rate. However, CSC’s PeopleSoft, SAP and Oracle practices have seen demand picking up. has been known for its flexibility New product releases are creating greater systems conversion demand and the opportunity to add more value to and customer-centric culture. Through numerous agreements clients’ existing ERP systems. The ramp-up in demand for these applications also ties in very well with CSC’s with hardware and software e-business initiatives. As more global companies rush to embrace e-business as an integral part of their operations, firms, the company develops and and as successful start-ups mature, the requirements for e-business success broaden dramatically. Issues such as manages solutions specifically innovation, speed, global scale, industrial-strength performance, full life-cycle support and – above all, the need for (1 of 6) [03/29/2001 9:33:43 PM]
  2. 2. Investor Relations 1st Quarter Fiscal 2001 tailored to each client’s needs. tangible business results – become critical. These are precisely CSC’s strengths. CSC remains on track to achieve its target of about $1 billion in e-business related revenue for this fiscal year. For the first quarter, global With more than 60,000 commercial revenues grew 10% (or 14% in constant currency), to $1.8 billion compared with $1.6 billion a year employees in locations ago. U.S. commercial revenue increased 12.3% to $980.8 million from last year’s $873 million, and European worldwide, CSC had revenues of $9.6 billion for the twelve revenue was $572.2 million, essentially the same as the comparable period last year (up more than 9% in constant months ended June 30, 2000. currency). Also, other international revenue, due to strong revenue gains in Australia and Asia, rose a robust 26.5% (or 33% in constant currency) to $262.5 million compared to $207.5 million in last year’s first quarter. First quarter revenue derived from the U.S. federal government increased 17% to $647.8 million from last year’s $553.6 million. Both civil agency and Department of Defense (DoD) related revenues showed strong comparisons to last year’s first quarter. CSC’s civil agency business climbed 30.8% to $234.9 million, up from $179.6 million last year, and DoD revenue rose to $412.9 million, up 10.4% from last year’s $374 million. 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: AT&T – CSC signed an outsourcing agreement with AT&T to manage the application development and maintenance work for the telecommunications giant’s Consumer Services organization. CSC is managing various software applications in the unit’s billing, credit and collections, ordering, provisioning and customer care areas. This new agreement subsumes a prior contract signed in March 1999. The Broken Hill Proprietary Company Limited (BHP) – As part of an agreement with BHP, CSC is providing a full range of IT services including consulting, systems integration and outsourcing. Additionally, CSC has acquired the assets of BHP Information Technology Proprietary Ltd., a wholly owned subsidiary of the Australia-based firm. Dupont Pharmaceuticals – Dupont Pharmaceuticals Company, a wholly owned subsidiary of Dupont, selected CSC to provide end-to-end information technology infrastructure services. The work spans the entire IT life cycle. CSC’s existing work in consulting was expanded to address DuPont Pharmaceuticals’ specific needs in their next generation of patient monitoring services. Nortel Networks – Nortel Networks has agreed to outsource certain global information services functions to CSC. Through the agreement, CSC directly supports the Nortel Networks IS organization by delivering global desktop and help line support, computer infrastructure management, legacy application development and support and data center management. The agreement covers more than 75,000 desktops around the world. U.S. Army -- – CSC was selected as one of twelve prime contractors to participate in the U.S. Army Aviation and Missile Command (2 of 6) [03/29/2001 9:33:43 PM]
  3. 3. Investor Relations 1st Quarter Fiscal 2001 OMNIBUS 2000 Support Services program. Under the program’s three major functional areas, CSC was selected as prime contractor for the technical contract and was awarded two sub-contracts, one for the logistics area and the second for the programmatics area. INVESTMENT DATA NYSE: CSC Recent Closing Price: 74 1/16 (8/21/00) 52-Week Range: 57 15/16 - 99 7/8 Shares Outstanding: 168.1 million Registered Shareholders: 9,620 Institutional Ownership: 78% Average Daily Trading Volume: 1st Quarter FY 2001 - 980,306 Market Cap: $12.4 billion RESEARCH COVERAGE A.G. Edwards (Mark Jordan) Bear, Stearns (Jim Kissane) 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) Wit SoundView (Gary Helmig) Standard & Poors (Jonathan Rudy) (3 of 6) [03/29/2001 9:33:43 PM]
  4. 4. Investor Relations 1st Quarter Fiscal 2001 Value Line (George Niemond) (4 of 6) [03/29/2001 9:33:43 PM]
  5. 5. Investor Relations 1st Quarter Fiscal 2001 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 07606 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 (5 of 6) [03/29/2001 9:33:43 PM]
  6. 6. Investor Relations 1st Quarter Fiscal 2001 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 June 30, 2000. [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 9:33:43 PM]