CSC Reports Strong Fourth Quarter Results

Published 21st May 2009

Q4 Highlights

• Positive top line growth for the quarter. Revenue of $4.11 billion, down 8.3% (up 0.4% in constant currency) over same quarter last year

• Operating income of $447 million, net income of $382 million EPS of $2.51 including $1.11 of tax benefits and a goodwill impairment charge of $0.12.

• Record breaking free cash flow of $850 million

• Operating margin of 10.9%, a 85 basis-point improvement over the prior year.

• $3.5 billion in new bookings for the quarter


FY09 Full Year Highlights

• Positive top line growth for FY09. Revenue of $16.74 billion, up 1.5% (up 4.3% in constant currency) year over year (slightly below guidance)

• Net income of $1,115million

• Operating margin of 8.25%, a year-over-year improvement of 27 basis points

• EPS of $7.31 including $3.36 of tax benefits and a goodwill impairment charge of $0.12, meeting guidance

• Free cash flow of $1,021 million, compared with $175 million in FY08

• Revenue growth by industry vertical compared to last year, in constant currency: - Healthcare, up 30% PS up 4%, FSS flat, CENR up 5% and MFG up 2%

- TCM down 2%

• By lines of business, CSC reported revenues of:

- $4.41 billion for BS&S, up 11.9% year over year in constant currency - $6.46 billion for GOS, up 0.3% year over year in constant currency - $5.98 billion for NPS, up 3.4% year over year in constant currency

• New bookings of $16.2 billion, slightly below guidance, a 4% increase over last year

- $7.3 billion from NPS - $4.5 billion from BS&S - $4.4 billion from GOS

• Successful execution and delivery of all NHS key milestones and receipt of associated payments

• Remediation of material weakness associated with tax accounting

• FY10Guidance/Outlook: Revenue in the $16 - $16.5 billion range and EPS in the $4.20 to $4.30 per share range, and free cash flow to be in a range of 90%-100% of net income.