Comunicado de prensa-- Febrero 04, 2003

CSC REPORTS THIRD QUARTER EARNINGS PER SHARE OF 61 CENTS

EL SEGUNDO, Calif., Feb. 4-- Computer Sciences Corporation (NYSE: CSC) today reported results for its fiscal 2003 third quarter, ended December 27, 2002. Earnings per share (diluted) were 61 cents, up 19.6%, and revenues were $2.8 billion, down 3.5% from last year's third quarter.

Effective for fiscal 2003, the company adopted SFAS No. 142, which eliminates the amortization of goodwill and certain intangible assets. Earnings per share before goodwill and employee workforce amortization were 62 cents for last year's comparable quarter.

CSC's U.S. federal government revenue growth partially offset continued softness in global demand for commercial IT services in the financial services vertical market and for shorter-term project-oriented services. Year-over-year profit margin improvement was driven by CSC's North American consulting and systems integration and federal sector performances, and by an ongoing companywide focus on operating efficiency.

For the third quarter (ended December 27):

• Revenues were $2.8 billion, a 3.5% decrease from fiscal 2002 (down approximately 6% in constant currency);


• Net income was $105.7 million;


• Earnings per share (diluted) were 61 cents;


• and announced major new business awards were $1.8 billion.

For the nine months (ended December 27):

• Revenues were $8.3 billion, down 1% from the comparable nine-month period of fiscal 2002 (down approximately 3% in constant currency);


• Net income was $277.5 million;


• Earnings per share (diluted) were $1.61;


• and announced major new business awards totaled $3.9 billion.

“Given the prolonged softness in global demand for commercial project-oriented activities and those of a discretionary nature, we are pleased to see the continued benefit of our cost-based actions reflected in improved margins," said CSC Chairman and Chief Executive Officer Van B. Honeycutt. "The demand for IT services within the U.S. federal government remains solid, as does the global demand for commercial outsourcing, including infrastructure, business process and applications services.

“During challenging economic periods such as we have seen over the last 18 months, it is essential for us to concentrate on operating efficiency and client service delivery, as well as reducing our discretionary costs. We are quite pleased with our results gauged by those measurements, and with the dedication and commitment demonstrated by all our employees to achieve these goals.

“We continue to see indications of stabilization of demand for consulting and systems integration services in North America and we are encouraged by a slight sequential increase in revenue during the quarter just ended," said Honeycutt. "Markets outside North America continue to be under pressure from soft demand for IT services.

“As global organizations continue to focus on making decisions to enhance their competitiveness and operating efficiencies, we believe CSC's long history of delivering results which meet or exceed client expectations will position us well to benefit from the future growth of IT services.

"The U.S. federal government is one of the world's largest spenders for IT services and our competitive position in that market is excellent," Honeycutt added. "The total federal IT budget for the government's fiscal 2003 is materially greater than last year and the Department of Defense budget shows the largest increase in approximately 20 years.

"These factors, along with the strong opportunity set within the U.S. federal government, indicates the market potential we believe will lead to continued revenue opportunities for CSC. We are currently addressing a 26-month federal pipeline of approximately $24 billion, which is about evenly split between civil agencies and the Department of Defense, including modernization of systems and infrastructure, IT and business process outsourcing, homeland security and e-government initiatives.

"The pending acquisition of DynCorp will provide us with increased access to the growing federal IT services market by expanding our breadth of services and deploying those services across a much broader array of agencies and departments,” added Honeycutt. “Now that the U.S. Homeland Security Department is in place, the resources and security expertise of CSC, coupled with those of DynCorp, will position us extremely well as the federal government expands and accelerates its efforts to enhance U.S. national security.

"We have announced approximately $400 million in new awards during the fourth quarter, bringing our year-to-date total to approximately $4.3 billion. We continue to make progress on negotiating two significant outsourcing opportunities we have previously discussed. One is with the Royal Mail Group, a UK government-owned public limited company providing mail, parcels and express services, and the other is with the German Defense Ministry for the Bundeswehr Herkules project, intended to upgrade the German Army's IT and communications systems.

"Addressing the final quarter of fiscal 2003, the current consensus of analysts' estimates is 95 cents earnings per share, and we presently anticipate our earnings will be in the mid-90s. Revenues for the fourth quarter will continue to be impacted by the softness we have discussed and are expected to decrease in the 2% to 4% range before any DynCorp contribution," Honeycutt said. "As we take an early look at fiscal 2004, we see revenue growth exceeding 25% which means revenue of approximately $14.5 billion, including the contribution from the pending DynCorp acquisition. And we see internal CSC growth in the high single digits. Preliminarily, earnings per share for next year are also anticipated to show improvement."

BUSINESS RESULTS

Revenue provided by CSC’s U.S. federal government activities increased to $789.6 million, up 7.2% from the $736.8 million recorded in last year’s third quarter. Revenue from CSC’s civil agencies business rose to $325 million, up 17.7%, from $276.1 million last year, aided by increased work under the Immigration and Naturalization Service STARS program, the IRS modernization activities and the GSA Federal Technology Services Millenia award. DoD revenue rose approximately 1% to $464.6 million from last year’s $460.7 million, with meaningful contributions from Missile Defense Agency engagements, intelligence community activities and other additional task orders.

During the third quarter, global commercial revenues declined 7.1% (down approximately 11% in constant currency), to $2 billion compared with $2.2 billion in last year’s third quarter. U.S commercial revenue declined 11.2% to $969.1 million compared with $1.1 billion a year ago. Both global and U.S commercial revenues showed the effects of continued soft demand for project-oriented consulting and systems integration activities and discretionary project work on some outsourcing contracts. European revenue was essentially flat, at $760.1 million compared with last year’s $761.3 million (down approximately 9% in constant currency).

Non-European international revenue was down 9.6% (down approximately 14% in constant currency), to $274.8 million from last year’s $304 million, as the Asian economies continue to struggle.

As announced in the company’s press release dated January 21, 2003, a teleconference will be held today at 5:00 p.m. EST, to discuss the third quarter results. This teleconference can be accessed from the CSC Web site at www.csc.com/investorrelations/, in a listen-only mode.

Founded in 1959, Computer Sciences Corporation is one of the world’s leading information technology (IT) services companies. 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 nearly 64,000 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. Headquartered in El Segundo, Calif., CSC reported revenue of $11.3 billion for the 12 months ended Dec. 27, 2002. For more information, visit the company’s Web site at www.csc.com.

All statements and assumptions in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the current expectations and beliefs of Computer Sciences Corporation, but are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results described in such statements. For a description of these factors, see (a) the section titled "Cautionary Statement Regarding Forward-Looking Statements" in the proxy statement/prospectus included in CSC’s Registration Statement on Form S-4 (File No. 333 102187) filed with the Securities and Exchange Commission on December 24, 2002, as it may be amended, and (b) the section titled "Management’s Discussion and Analysis of Financial Condition and Results of Operations; Forward-Looking Statements" in CSC’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 27, 2002.

Note to Analysts and Editors: Please see attached tables.

Revenue by Market Sector

Consolidated
Statements of Income

Additional Financial Information