The services firm says increased government sales boosted profit.
Computer Sciences Corp., the nation's third-largest IT services firm, reported Tuesday that its fourth-quarter net income rose 13%, to $162.7 million, or 93 cents per share, for the period ending March 28. CSC said higher sales to the government helped fortify its numbers.
Revenue for the quarter was $3.08 billion, up from $3.05 billion a year ago, the services firm said. The results include a $3.3 million charge CSC took to cover costs associated with its acquisition of government-services contractor DynCorp in March. CSC says the DynCorp deal helped boost its federal-government sales 19%, to $993.8 million, in the quarter. Among other things, DynCorp was recently awarded a federal contract to provide security for Afghan president Hamid Karzai.
For its 2003 fiscal year, CSC posted net income of $440.2 million, or $2.54 per share. In 2002, it earned $2.01 per share on net income of $344.1 million. Revenue for fiscal 2003 fell 0.3%, to $11.3 billion.
CSC's civilian IT business wasn't as bright as its performance in the government sector. For the quarter, the firm said sales of commercial IT services worldwide fell 5.2%, to $2.09 billion. For the year, worldwide commercial sales fell from $8.47 billion in 2002 to $8.0 billion in 2003. The fourth quarter "closes out what has been a difficult year for the IT services industry," CSC chairman and CEO Van Honeycutt said in a statement.
Still, CSC received some good news: It says it has signed four new IT services contracts with General Dynamics Corp. worth a total of $137 million that will expand its relationship with the defense contractor.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.