CSC Acquires BearingPoint Brazil

Outsourcer Computer Sciences Corp. said Thursday that it completed the acquisition of bankrupt consulting firm BearingPoint's Brazilian operations.

The move provides CSC with 550 employees located in offices in Sao Paulo, Rio de Janeiro, and Brasilia.

Officials said the acquisition will help the company boost its presence in the growing Latin American market. "Today marks a milestone in the implementation of our strategic growth plan and our expansion in high-potential geographies around the world," said Michael Laphen, CSC's chairman and CEO, in a statement.

"This acquisition aligns perfectly with our capabilities and strategic focus, and it positions CSC as a major player in the local IT services arena. I look forward to our future success both in Brazil and throughout Latin America," Laphen added.

Once high-flying BearingPoint filed for Chapter 11 bankruptcy in February and has since sold off a number of its operating units to rivals, including Deloitte and PWC.

Separately, CSC on Thursday reported that first quarter earnings increased 7.6% year-over-year, from 79 cents per share to 85 cents per share. Net income rose 5.5% to $133 million, while quarterly sales fell 12.4% to $3.9 billion.

Laphen said he was pleased with the results. "We experience another strong quarter of earnings improvement while also meeting or exceeding our other key financial targets for the quarter," said Laphen.

CSC affirmed previous revenue guidance for fiscal 2010. The company said it expects to post sales between $16 billion and $16.5 billion for the fiscal year. CSC also raised its earnings outlook in light of a more favorable tax rate. It expects to earn between $4.80 and $5.00 per share, up from a previous range between $4.20 and $4.30, in fiscal 2010.

CSC shares were up 1.52% to $49.39 in mid-morning trading Friday.

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