Falls Church, Virginia: Global IT services group CSC says it has taken the first steps to recovery, despite reporting falls in profit and revenue in its first quarter of fiscal 2013 today.
- Strong Bookings of $4.0 Billion
- Revenue Growth of 1% in Constant Currency
- Operating Margins of 4.6%
In the quarter to June 29 pre-tax profit fell 27 % 50 $74 million. Operating income was up 1.7% at $183 million on reported revenues down 2% at $3.96 billion.
"Our first quarter performance reflects a first step in turning around CSC. While there is significant work ahead of us, I am pleased with our initial progress on operating margins and free cash flow," said Mike Lawrie, President and CEO.
"We have launched several action plans which will transform the company over the next several years and create value for our shareholders. As part of this transformation agenda, we are bringing a much needed focus to greater contract management discipline across the company.
"We are also simplifying our operating model to realize greater productivity and operational efficiency. We are attacking our cost structure and we expect to realize about $1 billion in cost improvement over the next 18 months."
Lines of Business
- Managed Services Sector (MSS) revenue of $1.64 billion increased by 1% from the first quarter of last year and increased 5% in constant currency, mainly due to new contracts and CSC's AppLabs acquisition. MSS signed $2.2 billion of new business during the quarter.
- Business Solutions & Services (BSS) revenue was $0.99 billion, an increase of 2% from the first quarter last year and 7% in constant currency, primarily due to the iSOFT acquisition. BSS added $0.9 billion of new business in the quarter.
- North American Public Sector (NPS) revenue of $1.37 billion declined by 8% from the first quarter last year primarily due the completion of three Department of Defense contracts. NPS bookings of $0.9 billion were in-line with one year ago.