IT services provider Computer Sciences Corp easily exceeded analyst expectations in its fourth fiscal quarter of 2002, ended March 29, the company said on Tuesday.
The company attributed the positive results to solid revenue growth related to its business with the US Federal Government, to its outsourcing activities in North America and Europe, and to overall cost reductions in its operations.
CSC closed the quarter with net income of $US141.1 million, or $0.82 per diluted share. The consensus estimate from analysts polled by Thomson Financial/First Call was $0.77 per share.
CSC had a net loss of $37.4 million, or $0.22 per diluted and basic share, in the fourth quarter of fiscal 2001. That quarter's net loss included a charge of $0.54 per diluted share, which included employee severance costs and write-offs related to consolidation of facilities, among other things.
Revenue came in at $3.05 billion, a 5.1 per cent increase over the fourth fiscal quarter of 2001, said CSC, based in California.
Revenue from US Federal Government business grew 18 per cent to $834.5 million. CSC's clients in this sector include the US Internal Revenue Service, the US Immigration and Naturalization Service and the US Department of Defense, which by itself accounted for $528.5 million of CSC's quarterly revenue. The company estimates that the US Federal Government will increase its spending on information systems and services at a 10 per cent annual clip over the next several years.
For the entire fiscal year 2002, CSC had revenue of $11.4 billion, up 8.6 per cent over fiscal 2001, while net income came in at $344.1 million, or $2.01 per share.
In fiscal 2002, more than 70 per cent of CSC's revenue came from US Federal Government business and from commercial outsourcing, the company said.
CSC's stock closed up 5.73 per cent at $41.50 on Tuesday. The company has about 67,000 employees worldwide.