Mike Dickerson
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Bill Lackey
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CSC RECEIVES $4.6 BILLION IN SECOND-QUARTER NEW BUSINESS ORDERS
News Release -- October 24, 2008
Previously Unannounced Awards of $4.3 Billion Are in Addition to $310 Million in Previously Announced AwardsFALLS CHURCH, Va., Oct. 24 -- CSC (NYSE: CSC) today announced that the company had an estimated $4.3 billion in previously unannounced business orders and awards across its three primary lines of business during CSC’s fiscal 2009 second quarter ended Oct. 3, 2008.
“We are pleased with another strong quarter of new business awards,” said CSC Chairman, President and Chief Executive Officer Michael W. Laphen. “The $10.0 billion of new business awards for the first half of fiscal year 2009 represents a 47 percent increase over the $6.8 billion for the same period in fiscal year 2008. These first half awards are well balanced across our three major lines of business and include new customers, expansion of services for existing customers and extensions of existing long-term relationships.”
CSC’s North American Public Sector (NPS) line of business signed 130 contracts and subcontracts during the fiscal 2009 second quarter that have not been previously announced. These contracts have a total estimated value of $2.9 billion if all contract options are exercised in full. Civil agencies accounted for 52 awards with a total value of approximately $1.3 billion. The Department of Defense and its agencies accounted for 78 awards with a total value of approximately $1.6 billion.
These previously unannounced awards, combined with major announced NPS business awards of $310 million for the second quarter, bring the full-quarter NPS award total to $3.2 billion if all contract options are exercised in full.
CSC’s Global Outsourcing Services (GOS) line of business signed seven new business orders in the second quarter, including six previously unannounced contracts and one previously announced award with an undisclosed value. These contracts have a total estimated value of $366 million if all contract options are exercised in full. GOS awards for the first half of fiscal year 2009 were $3.3 billion when combined with the record $2.9 billion in awards during the first fiscal quarter.
CSC’s Business Solutions & Services (BS&S) line of business received orders for new business in the second quarter with an estimated total value of $1.0 billion if all contract options are exercised in full. 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.
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 Nov. 12, 2008.
About CSC
CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions & Services, Global Outsourcing Services and the North American Public Sector. CSC’s advanced capabilities include systems design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. Headquartered in Falls Church, Va., CSC has approximately 90,000 employees and reported revenue of $17.1 billion for the 12 months ended July 4, 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.
