CSC REPORTS FOURTH QUARTER AND RECORD FULL-YEAR FISCAL 2008 RESULTS

Nyhedsartikel -- Maj 21, 2008

FALLS CHURCH, Va., May 21 -- CSC (NYSE: CSC) today reported record annual revenues of $16.5 billion for fiscal year 2008, up 11% year over year. Additionally, the company reported record earnings per share for the fiscal year ended March 28, 2008. Summary results include:

Net income for the fourth quarter was $181.7 million, or $1.15 per share (diluted), including special charges related to the restructuring program announced in April 2006 of $45.6 million after tax, or 29 cents per share. Diluted earnings per share, excluding the special items, were $1.44 compared to last year’s fourth quarter earnings per share of $1.58, excluding special items.

For the year ended March 28, 2008, net earnings were $544.6 million, or $3.20 per share (diluted), including an after-tax net special charge of $108.2 million, or 64 cents per share (diluted), related primarily to the restructuring charge mentioned above. Excluding the special items, the $3.84 of diluted earnings per share for fiscal 2008 compares to $3.67 for fiscal 2007.

The 11% (approximately 7% in constant currency) quarterly revenue gain noted above was led by CSC’s global commercial sector, which grew in excess of 16% (approximately 11% in constant currency), posting $3.01 billion compared to $2.59 billion in the year-ago quarter. U.S. commercial revenue posted a strong fourth quarter total of $1.15 billion, up 20% compared with $963.7 million last year. European revenue rose to $1.38 billion, up 12 (approximately 4% in constant currency) from $1.23 billion for the fourth quarter last year. CSC's non-European international revenue was $473.9 million, up 22% (approximately 8% in constant currency) compared with last year’s $388.5 million.

For the fourth quarter, CSC’s North American Public Sector (NPS) revenue increased 1% to $1.48 billion from $1.46 billion for last year’s fourth quarter. Revenue derived from CSC’s DoD-related business was $977.6 million, up 2% from last year’s $959.4 million. This 2% growth reflects additional business partially offset by normal anticipated contract expirations. CSC’s civil agency activities generated revenue of $441.7 million, down 4% compared to $461.5 million last year. Other NPS segment revenue was $56.1 million, up 48% compared to $38.0 million in last year’s fourth quarter.

Major announced business awards for the fourth quarter were $2.5 billion, bringing the full-year total to $13.3 billion. CSC’s NPS pipeline of opportunities over the next 22 months is across a diverse set of both DoD and civil agency activity. The company’s commercial opportunity pipeline is also robust, and the first quarter is off to a solid beginning with more than $1.6 billion in commercial bookings already signed.

“We are delighted with our record revenue and earnings,” said CSC Chairman, President and Chief Executive Officer Michael W. Laphen. “We are also very pleased that we met or exceeded all of our financial guidance, including free cash flow. On the strength of fiscal 2008 results, we continue to advance toward our strategic goal of diversifying our services portfolio. To that end, our business mix is now 35% North American Public Sector, 41% Global Outsourcing and 24% Business Solutions and Services. As a result of our portfolio diversification efforts, we anticipate future improvements in our growth, profitability and cash flow.

“We are strengthening our positions in these three lines of business and six vertical markets to help drive longer-term operational and financial performance. We anticipate that the market for CSC’s Business Solutions and Services will provide higher revenue growth rates and operating margins in the future, enabling us to continue our expansion of integrated offerings across selected global markets and industries. As an example, the acquisition of First Consulting Group, which closed in the fourth quarter, has enhanced our market position in the healthcare industry with increased capabilities for that important market.”

For the full fiscal year 2009, CSC expects revenue growth, excluding any fiscal year 2009 acquisitions, to be in the 6% to 8% range and earnings per share to be in the $4.20 to $4.40 range, an increase of 9% to 15% year over year.

Free cash flow for fiscal year 2009 is expected to be approximately 80% to 90% of net income, consistent with CSC’s guidance.

For the first quarter, ending June 27, 2008, CSC anticipates revenue to be in the range of $4.25 billion to $4.40 billion, an increase of 11% to 15% year over year.

Earnings per share for the first quarter are expected to be in the range of 70 cents to 80 cents, reflecting the adverse comparative impacts from several non-operating items.

As announced in the company’s press release dated April 29, 2008, a teleconference will be held today at 5:00 p.m. EDT to discuss fourth quarter results. This teleconference can be accessed from the CSC Web site at www.csc.com/investor_relations, in a listen-only mode.

CSC will be hosting an institutional investor meeting in New York City on June 5, 2008, at the Barclay Intercontinental Hotel, from 8:30 a.m. to 1:30 p.m., including lunch. Participants attending in person are required to register for the meeting and can do so at www.csc.com/ir. The meeting, including a slide presentation, www.csc.com/investor_relations.

CSC is a leading information technology (IT) services company. CSC’s mission is to be a global leader in providing technology-enabled business solutions and services.

With approximately 90,000 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 $16.5 billion for the 12 months ended March 28, 2008. 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

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