The IT infrastructure services deal covers help desk, desktop management, network services, security services, and server support, as well as applications maintenance.
CSC has also revealed the extent of its investment in its disputed contract with retail giant Sears in a filing with the Securities and Exchange Committee. Its Form 10-Q said that while it expected to resolve the dispute over the $1.6bn contract, it had invested net assets worth $80m which it would vigorously pursue the recovery of. It said it expects to recover the assets, but if unsuccessful it warned it might have to take an impairment charge. The termination of the Sears deal, along with end of its Nortel Networks contract, made a combined impact of $58m in its most recent financial quarter.
Sears canceled the contract for cause in May 2005, but CSC claimed that Sears only canceled the deal because it merged with rival retailer K-Mart and wanted to consolidate its contracts without having to pay early termination fees.
