El Segundo-based Computer Sciences Corp., which put itself up for sale in April, said on Tuesday that fourth-quarter net income fell from the year-ago period, which had been boosted by divestitures.
Net income for provider of information technology outsourcing, consulting and systems integration services, dropped 52 percent to $199.4 million, or $1.05 a share, from $411.8 million, or $2.13, a year earlier. Sales were little changed at $3.88 billion in the quarter ended March 31. Commercial revenue fell by 5.8 percent, dragged down by exchange rates in Europe and work delays in the U.S.
Computer Sciences forecast first-quarter sales of $3.4 billion to $3.5 billion, below the $3.71 billion average consensus of analysts surveyed by Thomson Financial. Profit will be in the mid-60-cent range, the company said, excluding stock-option costs of 4 cents a share, compared with analysts’ average projection of 69 cents.
Shares of Computer Sciences, which reported after the market close, fell nearly 3 percent in after-hours trading. Shares earlier fell 2.8 percent in regular trading to close at $53.18
The company said it is eliminating 4,300 jobs in the fiscal year that began April 1, with an additional 700 positions in fiscal 2008 to lower costs by a total $450 million. Most of the job reductions will be in Europe.
Chief Executive Van Honeycutt put the company up for sale last month after a planned buyout fell through. Talk of a sale may have caused some customers to hold off on making decisions about spending, analysts said.