CSC Profit Up on Government Contracts

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Computer Sciences Corp. on Tuesday said third-quarter earnings rose 29 percent on higher revenue from its federal government and U.S. commercial operations.


The El Segundo-based technology services company reported third-quarter net income of $203.5 million ($1.08 per share), compared with $157.5 million (82 cents) for the same period a year earlier. Revenues rose 2.5 percent to $3.58 billion from $3.49 billion in the year-prior period.


Analysts had expected earnings of 85 cents per share on revenue of $3.78 billion.


Net income included an after-tax gain from discontinued operations of $38.4 million (20 cents per share) related to the sale of its DynCorp unit.


Revenue derived from the company’s Department of Defense-related business increased 12 percent to $820.1 million from $732.2 million a year earlier. Its U.S. federal government revenue climbed 6.9 percent to $1.22 billion. Third quarter global commercial revenue was mostly unchanged at $2.35 billion, compared to $2.34 billion in the year-ago quarter. U.S. commercial revenue edged up 3.4 percent to $998.3 million.


The company expects fourth-quarter earnings of $1.10 to $1.14 per share on revenue of approximately $3.8 billion and full-year earnings of $3.27 to $3.31 per share on revenue of about $14.6 billion.


Over the next 14 months, through fiscal 2007, the company’s federal pipeline is approximately $28 billion, comprised of about 390 programs from a number of government agencies and departments.

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