CSC 3Q revenue decline eased by $4.1B in new awards
- By Matthew Weigelt
- Feb 09, 2012
Computer Sciences Corp. posted third-quarter fiscal 2012 revenues of $3.8 billion, a slight decrease from $4 billion in the year-ago quarter, the company announced Feb. 8.
For the quarter that ended Dec. 30, CSC's new awards totaled $4.1 billion across its three business lines. For the three quarters, CSC has had $13 billion in awards, which is a 26-percent increase compared to 2010, the earnings report said.
The North American Public Sector contributed $800 million, Managed Services Sector (MSS) reported $2.4 billion, and Business Solutions & Services (BSS) closed $900 million worth of new business.
CSC brought in $1.4 billion in revenue in its public sector business for the quarter. In 2010, the sector had $1.5 billion in revenue.
The company recorded two significant non-cash charges in the quarter, arising from the annual goodwill impairment analysis and a previously disclosed claims settlement.
In the quarter, CSC had a net goodwill impairment charge of $60 million, which represents all of the remaining goodwill at BSS-Health.
“I am encouraged by our continued success in capturing new business, our strong cash generation, and the sequential improvement in MSS operating margin,” said Michael Laphen, CSC chairman, president and CEO. “Notwithstanding the NHS charge, discussions continue toward defining a program scope and a market potential that builds upon our accomplishments to date.”
CSC’s operating margin of -34.1 percent compares to 7.4 percent for the third quarter of 2010. The operating cash flow was $720 million for the quarter, compared to $462 million compared to 2010.
CSC, of Falls Church, Va., ranks No. 11 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.
Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.