CSC revenue declines 10 percent to $3.26 billion in Q1 FY 2014

CSC on Tuesday said its revenue declined 10 percent to $3.26 billion in the first quarter of FY 2014.

CSC president and CEO Mike Lawrie said: “The company is beginning to pivot more towards growth and we are investing in offerings and partnerships that will enhance our differentiation and expand our market coverage.”

The company’s net income increased to $159 million for the first quarter from $42 million in the prior year.

CSC implemented a new operating model to align the company’s strategy of leading the next generation of IT services and solutions.

Global Business Services

GBS provides consulting, industry software & solutions, and applications services.

GBS revenue declined to $1.08 billion from $1.28 billion.

The revenue decline is primarily due to a net reduction of $72 million from a divested IT staffing business and $55 million from a one-time NHS milestone payment in the prior year. New business awards for GBS were $1.2 billion in the quarter.

Global Infrastructure Services

GIS offers managed and virtual desktop solutions, unified communications and collaboration services, data center management, as well as CSC’s next generation Cloud offerings including secure Infrastructure as a Service (IaaS), private Cloud solutions, CloudMail and Storage as a Service (SaaS).

GIS revenue declined 4 percent to $1.15 billion primarily due to contract conclusions and contract scope changes in Europe. Operating margin was 7.1 percent, a significant increase from 1.3 percent in the prior year as the business benefitted from cost takeout initiatives and better contract performance. GIS reported new business awards of $900 million in the quarter.

North American Public Sector

NPS provides mission-specific IT services, infrastructure and business services primarily to the U.S. federal government and this segment has not changed as a result of the new operating model.

NPS revenue dipped 11 percent to $1.05 billion. Revenue in the quarter was impacted by a reduction in professional services at the Department of Defense and other government agencies as the result of sequestration, as well as contracts which are winding down. New business awards were $700 million in the quarter.

[email protected]

Related News

Latest News

Latest News