CSC Drops on Earnings Delay

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Computer Sciences Corp. said Tuesday that it will not file its first-quarter results on time because it has not finished an accounting review.


The El Segundo-based IT services provider in May said it found significant errors in its accounting for tax liabilities in fiscal years 2000 through 2006. The company also said that it needed to make a correction in accounting for software license sales.


The total effect of the errors was a 12-cent reduction in reported earnings per share of $2.16 for fiscal year 2007 and a 48-cents reduction in 2006 annual results of $2.81 per share.


The company said it still expects profit for its first quarter of 65 cents to 75 cents per share on revenue between $3.7 billion and $3.8 billion but added that it did not know when it would report its results officially, which were due Monday.


Analysts polled by Thomson Financial said they expected profit for the quarter of 71 cents per share on revenue of $3.74 billion.


Shares in CSC dropped $1.91, or 3.3 percent, to $55.76 in afternoon trading Tuesday on the New York Stock Exchange.

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