IT services company Computer Sciences Corp has reported a strong finish to fiscal 1999, with fourth-quarter net income up 45.8% at $116.8m, or $0.72 per share, a penny better than Wall Street expected. The El Segundo, California-based company saw revenue grow 14% to $2.13bn, marking the first time a single quarter has exceeded $2bn. Results for the year-ago quarter included a one- time charge of $20.7m stemming from the company’s successful fight of the hostile takeover attempt by Computer Associates International Inc.
For the full year, net income rose 31% to $341.2m against the prior year, which included a net one-time credit of $1.7m resulting from a $133.3m after-tax charge and a $135m income tax benefit, both of which related to developments at an affiliated joint venture during the first quarter. Revenue for the year rose 16% to $7.66bn.
CSC says it was awarded $1.6bn in new business during the quarter and saw strong results from its European, Australian and Asian operations. European revenues rose 19.4% year-over-year to $610.1m. Other international revenues increased 42.9% to $172.2m, aided by the acquisition during the quarter of Singapore-based services firm CSA Holdings Ltd. Non-US revenues for the full year were $2.8bn, or 36% of total revenue.
US commercial revenues for the quarter rose 13.1% to $880.4m, with outsourcing, consulting and systems integration, as well as further expansion of market position in the financial services and healthcare markets, all drivers behind the revenue increase. Full-year US commercial revenue rose 12.7% to $3.1bn, or 41% of the total.
Fourth-quarter revenues from the US federal government sector, meanwhile rose 1.9% to $467.7m, as NASA reduced its spending with the company and several other contracts wound down. For the full year, federal government revenue totaled $1.8bn, up 8.3% and accounting for 23% of total 1999 revenue. á
