For the quarter ended March 30, 2007, revenue was up 4% to $4.05bn. The sales story was similar to past quarters; CSC’s federal business continues to grow strongly, making up for a dip in commercial revenue. The company’s North American public sector business, 97% of which is with the federal government, was up 5% to $1.43bn for the quarter. US commercial sales, meanwhile, tumbled 3% to $991.1m, although CSC got a nice jump in European sales, up 9% to $1.23bn.
Earnings per share came in at $1.42 per share. Excluding restructuring charges, EPS was $1.56, ahead of analysts’ expectations of $1.54, according to Reuters Estimates. Wall Street was looking for $4.1bn on the top line.
For all of fiscal 2007, CSC posted income of $388.8m, or $2.16 per share, on revenue of $14.9bn. CSC’s restructuring program lopped of a whopping $1.46 per share. The recently disclosed accounting errors in certain tax liabilities the company took between 2000 and 2006 resulted in another $0.12 off of EPS. These same errors, which CSC estimates will cost it between $300m and $400m, had forced CSC to last month delay its annual report until now.
The bookings news was positive for CSC. It clocked in $4.3bn in new signings for Q4 for a total of $16.9m for the year, divided 55% and 45% between federal and commercial awards, respectively. The federal pipeline, at $44bn over the next 22 months, is surely strong.
First-quarter guidance for fiscal 2008 includes EPS between $0.65 and $0.75 on revenue of $3.7bn to $3.8bn. For the full year, CSC expects an EPS range of $4.00 to $4.20, on revenue up 6% to 7% from 2007 levels. These numbers exclude CSC’s recent acquisition of offshore specialist Covansys, which had revenue of $456m in 2006.
CSC reported its numbers after market close, but shares were down 2% to $54.82 in after-hours trading.
