Mike Dickerson
Director, Media Relations
Corporate
310.615.1647
> Email
Bill Lackey
Director, Investor Relations
Corporate
310.615.1700
> Email
CSC ANNOUNCES $2.9 BILLION IN NEW FIRST-QUARTER BUSINESS ORDERS
News Release -- July 24, 2008
Previously Unannounced Awards Boost First Quarter Award Total to $5.4 BillionFALLS CHURCH, Va., July 24 -- CSC (NYSE: CSC) announced today that the company had an estimated $2.9 billion in previously unannounced business orders and awards across its three primary lines of business during CSC’s fiscal 2009 first quarter ended July 4, 2008.
“We are pleased that our first quarter total awards and new business orders are in line with expectations,” said CSC Chairman, President and Chief Executive Officer Michael W. Laphen. “This is the first time we have reported these awards for all three lines of business and look forward to following this process in the future.”
CSC’s Global Outsourcing line of business signed contracts with a previously unannounced value of $871 million for the first quarter. This amount, combined with announced awards of approximately $2 billion, bring the full-quarter estimated commercial outsourcing award total to $2.9 billion if all contract options are exercised in full.
These contracts include full-service infrastructure and applications outsourcing agreements as well as extensions of existing long-term relationships. The awards underscore CSC’s strategic shift toward midsize deals, defined as those with a total contract value of less than $350 million or annual average revenue of less than $50 million. More than half of the first quarter’s outsourcing awards were midsize deals.
CSC’s North American Public Sector (NPS) line of business signed 76 previously unannounced contracts and subcontracts during CSC’s fiscal 2009 first quarter. These contracts have a total estimated value of approximately $823 million if all contract options are exercised in full. Civil agencies accounted for 27 awards with a total value of approximately $203 million. The Department of Defense and its agencies accounted for 49 awards with a total value of approximately $620 million.
These previously unannounced awards, combined with major announced NPS business awards of $423 million for the first quarter, bring the full-quarter NPS award total to $1.25 billion if all contract options are exercised in full.
CSC’s Business Solutions & Services (BS&S) line of business received orders for new business with an estimated total value of $1.2 billion, if all contract options are exercised in full, during its fiscal 2009 first quarter.
Business Solutions and Services (BS&S) is one of CSC’s fastest-growing lines of business and represents a key element of CSC’s multi-year growth strategy. BS&S includes CSC’s commercial consulting and systems integration activities, large scale program and project management, intellectual property or business process outsourcing based solutions, and other information technology related services. The fiscal 2009 first quarter is the first period for which CSC has announced new orders for Business Solutions and Services.
CSC will provide additional information concerning the quarterly and year-to-date performance of its lines of business, and its overall business, in its upcoming quarterly earnings announcement on August 5, 2008.
About CSC
CSC is a leading 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. Headquartered in Falls Church, Va., 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 28, 2008. 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.
