CSC posts 30 percent Q4 revenue increase

Outsourcing and services company Computer Sciences boosted revenue by 30 percent, to US$4 billion, in the fourth fiscal quarter of 2004, compared with just over US$3 billion in revenue during the same period a year earlier.

The higher revenue was only part of the good financial news for the El Segundo, Calif.-based company, which released its quarterly results yesterday. Net income for the quarter, which ended April 2, was US$190.6 million, up from US$162.7 million one year earlier.

For all of fiscal 2004, CSC brought in US$14.7 billion in revenue, compared with US$11.3 billion in the previous fiscal year, according to the company. Net income for the full fiscal year was US$519.4 million, up 18 percent from the US$440.2 million in net income in fiscal 2003.

Earnings per share for Q4 were US$1.02 basic and US$1.01 diluted, compared with 93 cents basic and diluted one year earlier. Earnings per share for the full fiscal year of 2004 were US$2.77 basic and US$2.75 diluted, compared with US$2.55 basic and US$2.54 one year earlier.

"We are very pleased with our fourth quarter and fiscal 2004 results," Van B. Honeycutt., CSC's chairman and CEO, said in a statement. "We have delivered strong performance and have gained market share during another challenging year for the information technology services market."

The higher revenues and earnings were the result of increased business with the federal government, as well as increased outsourcing services and business acquisitions, including the purchase of DynCorp, CSC said.

For the first fiscal quarter of 2005, the company expects revenue to grow between 8 percent and 10 percent, with diluted earnings per share in the range of US$3.10 to US$3.20. "Our assumptions for the first quarter, ending July 2, 2004, are for revenue growth of approximately 4 percent to 6 percent and earnings per share diluted in the 55 cent to 59 cent range," Honeycutt said.

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