CSC reports loss because of non-cash charges
- February 8, 2012
Falls Church-based CSC reported a loss of $8.97 a share for the third quarter of its 2012 fiscal year because of two non-cash charges.
Revenue for the quarter ending Dec. 30 was $3.76 billion net of a $204 million reduction relating to changes in the company’s National
Health Service (NHS) contract in the United Kingdom. Excluding the NHS reduction, revenue was $3.97 billion, a decrease of 0.7 percent when compared to a year ago.
Two significant non-cash charges affected earnings per share from continuing operations:
o On Dec. 27, the company announced it would record a material impairment of the its net investment in the NHS contract. Third quarter results reflect a charge of $1.49 billion, reducing earnings per share from continuing operations of $9.93.
o A further goodwill impairment review for the BSS-Health reporting unit took place in the third quarter and resulted in a net goodwill impairment charge of $60 million which represented all of the remaining goodwill at BSS-Health. This charge reduced earnings per share from continuing operations by 39 cents.
Excluding the impact of these charges, non-GAAP earnings per share was $1.35.
New business awards were $4.1 billion for the quarter and $13.0 billion year to date, which represents an increase of 71 percent and 26 percent, respectively, when compared to last year.