Computer Sciences Reports Big 1Q Loss

Computer Sciences Reports Big 1Q Loss

IT outsourcing company Computer Sciences Corp. said Thursday that it saw a fourth-quarter loss due to higher costs and lower revenue, and its shares slid 2 percent by early afternoon.

CEO Mike Lawrie called the results “very poor” but said the company was beginning a turnaround.

“This will be a multiyear journey, but we aim to place our business on a more profitable trajectory to the benefit of our employees, customers and investors,” Lawrie said in a statement.

For the quarter that ended March 30, the company said its net loss was $158 million, or $1.02 per share. That’s compared with net income of $171 million, or $1.09 per share, a year earlier.

Analysts had been expecting adjusted net income of 36 cents per share, according to FactSet. The company didn’t offer an adjusted earnings figure.

Revenue for the period fell slightly to $4.11 billion from $4.2 billion. Analysts were expecting almost $4.1 billion, according to FactSet.

For the full year, the company reported a net loss of $4.24 billion, or $27.37 per share, compared to net income of $740 million, or $4.73 per share, during the year before.

The company said its full-year results included a charge of $17.41 per share to reflect the declining value of its assets plus smaller one-time charges for a United Kingdom National Health Service cost, a claim settlement in the U.S. and restructuring. Computer Sciences also faced higher expenses during the year, but those were partially offset by lower taxes.

Revenue for the year fell to $15.88 billion from $16.04 billion in the prior year period.

The company didn’t offer an earnings outlook.

Shares fell 58 cents to $25.84, near their low for the year of $22.80. They’ve traded as high as $44.92 over the past 52 weeks.

Source: Business Week
CATEGORY: Global News

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