CSC Posts Third-Quarter Gains In Sales And Profits

Computer Sciences Corp. on Tuesday said revenue for its third quarter increased 5.6% year over year to $3.5 billion despite a decline in sales to the federal government.

Net income for the period rose 23% to $157.5 million while earnings per share rose 20% to 83 cents. Analysts surveyed by Thomson First Call were, on average, expecting the IT-services firm to report per-share earnings of 80 cents. In the third quarter, CSC said it announced $5.3 billion in new contracts. However, the company noted that continuing operations' revenue attributable to federal government sales fell 4.1% to $1.14 billion during the period.

For its fiscal year ending April 1, CSC expects revenue of about $14 billion. The figure doesn't include sales from CSC's DynCorp International LLC unit, which it's in the process of selling.