CSC REPORTS PRELIMINARY THIRD QUARTER RESULTS

Nyhedsartikel -- Februar 04, 2008

• Total revenue of $4.16 billion, up 14.3% (approximately 10% in constant currency);
• Net income of $179.0 million, or $1.05 per share (diluted), including special charges of 6 cents per share related to CSC’s restructuring program,
up 57.7%;
• Global commercial revenue of $2.73 billion, up 17.5% (approximately 10% in constant currency);
• North American Public Sector revenue of $1.44 billion, up 8.6%.

EL SEGUNDO, Calif., Feb 4 -- Computer Sciences Corporation (NYSE: CSC) today reported preliminary results for its fiscal 2008 third quarter, ended December 28, 2007.

As noted, for the third quarter, net income was $179.0 million, or $1.05 per share (diluted), including special charges related to the restructuring program announced in April, 2006 of $9.9 million after tax, or 6 cents per share. Diluted earnings per share, excluding the special items, were $1.11, up 31% compared to last year’s third quarter earnings per share, as restated, of 85 cents before special items.

Revenue for the third quarter was $4.16 billion, up 14.3% (approximately 10% in constant currency) over last year’s third quarter. The quarter’s strong revenue growth was led by CSC’s global commercial sector, which achieved double-digit growth, aided by Europe, which contributed revenue growth of over 20%, as reported.

Third quarter global commercial revenue was $2.73 billion, up 17.5% (approximately 10% in constant currency) compared to $2.32 billion in the year-ago quarter. U.S. commercial revenue was $1.03 billion, up 11.5% compared with $924.8 million last year. European revenue rose to $1.24 billion, up 20.7% (approximately 10% in constant currency) from the $1.03 billion reported for the third quarter last year. CSC's non-European international revenue was $454.4 million, up 23.4% (approximately 10% in constant currency) compared with last year’s $368.1 million.

For the third quarter, CSC’s North American Public Sector (NPS) revenue increased 8.6% to $1.44 billion from $1.32 billion for the third quarter of fiscal 2007. Revenue derived from CSC’s DoD-related business was $970.1 million, up 10.1% from last year’s $881.3 million. This solid performance was the result of increases in growth from both existing clients and new business awards. CSC’s civil agencies activities generated revenue of $419.6 million, up 6.6% compared to $393.8 million last year. Other NPS segment revenue, comprised of state, local and foreign government as well as commercial contracts performed by the NPS segment, was $45.3 million compared with last year’s $45.7 million.

CSC’s NPS pipeline of opportunities over the next 14 months is approximately $34 billion, comprised of more than 430 programs across a very diverse set of both DoD and civil agency activity.

Major announced business awards for the third quarter were $2.3 billion, bringing the nine-months total to $10.8 billion. For the remainder of the fiscal year, the company is pursuing numerous opportunities and anticipates another solid year of award totals.

“We are pleased with our third quarter profit performance, which was stronger than anticipated, with some benefits advancing from the fourth to the third quarter, and with free cash flow of $300 million for the quarter, we remain on track to achieve our fiscal year target,” said CSC Chairman, President and Chief Executive Officer Michael W. Laphen.

“Our multi-year strategic initiative, Project Accelerate, provides us with direction and opportunities going forward to achieve our goals of improving revenue growth, operating margin and ROIC. We are strengthening our positions in selected industry vertical markets to help drive these improvements. Notably, we closed the acquisition of First Consulting Group on January 11. This acquisition enhances our healthcare expertise and intellectual property while expanding our worldwide delivery capabilities.

“For the fourth quarter, ending March 28, we anticipate revenue to be in the range of $4.2 billion to $4.5 billion and earnings per share, excluding special items, to be in the $1.33 to $1.43 range. Our guidance for the fiscal year’s revenue continues to be in the range of $16.2 billion to $16.5 billion, up approximately 9% to 11%. We now expect earnings per share for the year to be in the $3.75 to $3.85 range, including the adoption of FIN 48, but excluding special items.”

As announced in the company’s press release dated January 24, 2008, a teleconference will be held today at 5:00 p.m. EST to discuss third quarter results. This teleconference can be accessed from the CSC Web site at www.csc.com/investorrelations, in a listen-only mode.

Computer Sciences Corporation is a leading global IT services company. CSC’s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 91,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC’s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. CSC reported revenue of $16.1 billion for the 12 months ended Dec. 28, 2007. For more information, visit the company’s Web site at www.csc.com.

All statements in this press release and in all future press releases 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 written description of these factors, see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year ended March 30, 2007. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent events or otherwise except as required by law.

Note to Analysts and Editors: Please see attached tables.