CSC has reported revenue of $3.97bn for the third quarter of 2011, up 1% compared to $3.94bn in the same quarter previous year.
The company’s pre-tax margin was -72% compared with 6.23% from the previous year, while operating income margin was -1.89% which included the adverse impact of the US Government settlement and the recently completed iSOFT acquisition.
On a pro forma basis, the company posted operating income margin of 5.56% which compares to 7.75% for the prior year.
Free cash flow for the quarter was negative $268m, compared to last year’s free cash flow of $178m, CSC said.
New business awards of $6.6bn for the quarter resulted in a half year increase of 13% above last year, while on a year-to-date basis, new business awards were approximately $8.9bn compared to $7.9bn in the previous year.
CSC chairman, president and chief executive officer Michael Laphen said the first half total bookings of $8.9bn is encouraging and reflects the investment we have made in our sales organisation.
"With respect to the bottom line, MSS is a turnaround story and as previously announced we have made several organisation and process changes aimed at accelerating improvements," Laphen said.
"During the quarter our equitable settlement with the US government was finalised, resulting in a $1bn incremental contract value, a cash payment to the company of $277m and a non-cash pre-tax charge of $269m."
