Earnings report: CSC Corp., Falls Church
- November 7, 2012
THE TAKE: CSC Corp. reported a 2.8 percent decline in revenues and 1 percent decline in constant currency. The company saw a huge surge in net income during the second quarter of its Fiscal Year 2013, as the second quarter of 2012 included a goodwill impairment charge. The company is trying to focus more on its core mission: technology solutions and services. The company’s Managed Services Sector’s revenue fell 2 percent in the second quarter but increased in constant currency from an acquisition of AppLabs. The company’s North American Public Sector said revenues declined 4 percent because of Defense Department completions and fewer business awards from government procurement.
Revenues: $3.85 billion in the second quarter of Fiscal Year 2013, down 2.8 percent from $3.97 billion during the previous year
Net income (loss): $138 million profit for the quarter, compared with a $2.87 billion loss during the second quarter of 2012.
Diluted earnings per share: 83 cents per share, compared with a loss of $18.56 per share during the same period last year
Special items: The second quarter of 2012 included a $18.21 per share goodwill impairment charge because of anticipated government spending cuts
THE COMPANY’S TAKE: “Our second quarter results reflect continued progress made on our contract management performance and cost takeout program. As a result, operating margins improved across all three lines of business when compared with the prior year and we are raising our fiscal year 2013 EPS targets to $2.30 to $2.50,” Mike Lawrie, President and CEO, said in a statement. “During the quarter, we also strengthened our offering portfolio through the acquisition of a premiere software development company that specializes in big data, analytics and advanced applications. This action is consistent with our strategy of being a leader in next generation technology solutions and services. We are also taking steps to divest certain non-core assets such as a smaller business in Italy. There is much work to be completed but we are encouraged with the early results of our turnaround program.”