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computer sciences FY 2000 Q2
1. Investor Relations 2nd Quarter Fiscal 2000
Second Quarter Fiscal 2000 ( Ended October 1, 1999)
Earnings Summary
Research Coverage
Financial Highlights
CSC's Business EARNINGS SUMMARY
Computer Sciences “CSC’s wide range of services, business diversity and large base of long-term
Corporation helps clients in
contracts enabled the company to deliver solid quarterly results in a
industry and government use
Y2K-impacted information technology market. In the first half of fiscal 2000
information technology to
we announced a total of $5.3 billion in new awards -- more than the $5.1
achieve strategic and
operational objectives. With billion total, excluding our IRS award, announced for all of last year. We
54,000 employees in more continued to enjoy significant demand for outsourcing and other services,
than 700 offices worldwide,
and we are seeing a rapid acceleration in requests for our integrated
the company tailors solutions
e-business solutions.quot;
from a broad suite of
integrated service and
Van B. Honeycutt
technology offerings, including
e-business strategies and Chairman, President and Chief Executive Officer
technologies; management and Computer Sciences Corporation
I/T consulting; systems
development and integration; Computer Sciences Corporation earnings per share for its fiscal 2000 second
application software; and I/T
quarter rose 22.2% to 55 cents per share (diluted) from 45 cents per share for
and business process
the comparable quarter last year.
outsourcing.
Net income for the quarter increased 22.7% to $89.6 million from the $73
Since its formation in 1959,
CSC has been known for its million reported a year ago. Revenues for the second quarter were up 15.1% to
flexibility in its relationships $2.13 billion compared with the $1.85 billion for the prior year period.
with clients. Through
numerous agreements with Strong growth in global commercial revenue, up 19.2%, and improved
hardware and software
operating performance were the principal contributors to the net income gain.
technology firms, the company
U.S. commercial revenue growth benefited from strong contributions from
is able to identify and manage
solutions specifically tailored outsourcing awards announced earlier this year and from CSC’s healthcare
to each client's needs. vertical.
CSC had revenues of $8.2
CSC’s rolling 12 month net income margin, excluding special items, has
billion for the 12 months
improved for nine consecutive quarters. The company has exceeded its revenue
ended October 1, 1999.
budget for each of the first two quarters and is comfortably on plan to achieve
approximately $9 billion of revenue for fiscal 2000, excluding the contribution
from the previously announced Nichols Research transaction which will be
accounted for as a pooling-of-interests.
European revenue for the quarter rose 14.5% to $621.5 million from $542.6
million last year. The effect of currency fluctuations reduced European growth
by about three percentage points.
Last year’s fourth-quarter acquisition of Singapore-based CSA Holdings and a
solid increase from CSC Australia drove the dramatic 63.1% growth in other
http://www.csc.com/invest/hilites10_00.html (1 of 5) [03/29/2001 9:36:38 PM]
2. Investor Relations 2nd Quarter Fiscal 2000
international revenue to $195.4 million from $119.8 million.
CSC’s revenues from the U.S. federal government rose 1.9% to $449.3 million
from last year’s $440.9 million, and is consistent with the company’s
expectation that fiscal 2000 full year federal growth will reach the mid-single
digit range. Department of Defense (DoD) revenue declined slightly, reflecting
the end of certain contracts. Civil agency revenues grew 9.3% as growth from
other civil agencies more than offset expected NASA reductions.
CSC ’s federal market pipeline of opportunities over the next 30 months is an
extremely robust $22 billion and the overall market for information technology
services to the U.S. federal government is as vital as it has ever been.
Escalating e-business engagements place CSC well on the way to achieving a
substantial increase in such revenues for fiscal 2000. The rapidly growing
utilization of the Web to enhance the competitiveness and efficiency of clients
presents abundant opportunities for CSC, which is uniquely positioned to offer
end-to-end capabilities encompassing a balance of strategy, experience and
technology. These exciting developments in e-business applications and
solutions are being driven by the need of both public and private organizations
to achieve higher levels of responsiveness, customer satisfaction and results.
CSC's SERVICES ENCOMPASS THREE KEY AREAS:
MANAGEMENT AND INFORMATION TECHNOLOGY CONSULTING
Dramatically improve client organizations' operations. Often streamlines basic business processes.
SYSTEMS DEVELOPMENT, AND INTEGRATION
Design, develop and build information technology systems. Combine hardware, software and communications into more
productive systems.
OPERATIONS SUPPORT AND INFORMATION SERVICES OUTSOURCING
Directly operate clients' information systems. CSC often acquires clients' systems and employees.
RECENT ENGAGEMENTS INCLUDES:
United Technologies Corp. (UTC) – -- CSC and United Technologies Corp., a Fortune 50 diversified
manufacturer, have signed a new outsourcing agreement which incorporates a prior contract signed with Pratt &
Whitney, UTC’s largest business unit. As part of the new contract, CSC will consolidate and streamline the I/T
infra- structure for all of UTC’s North American information technology infrastructure.
Hughes Electronics -- An original seven-year I/T outsourcing agreement announced in January 1995 with Hughes
Electronics has been extended to December 2004. The agreement marks the second long-term outsourcing contract
that a major client has chosen to extend with CSC and is indicative of the business value of outsourcing.
San Diego County -- The Pennant Alliance, a consortium of companies led by CSC, has been selected to create a
virtual government for the County of San Diego that will provide its citizens greater accessibility to County
services. The selection of the Pennant Alliance culminates a 15-month competitive phase and represents the largest
I/T outsourcing project carried out by a local government agency in the United States.
U.S. Department of Education (DoE) -- CSC has been selected to provide data center operations and support to
the Federal Family Education Loan System of the DoE’s Office of Student Financial Assistance. CSC will be
responsible for migrating and consolidating data center operations in support of financial aid programs
administered by the DoE.
CheMatch.com -- Through a strategic partnership, CSC will enhance the online trading and information platform
of CheMatch.com, a real-time, online trading exchange serving the $1.6 trillion global chemical industry.
http://www.csc.com/invest/hilites10_00.html (2 of 5) [03/29/2001 9:36:38 PM]
3. Investor Relations 2nd Quarter Fiscal 2000
CheMatch.com creates a pure market where buyers and sellers benefit from unprecedented market data, price
transparency and access to a global pool of products -- 24 hours a day, seven days a week, from locations around
the world.
INVESTMENT DATA
NYSE: CSC
Recent Closing Price: 67 3/4 (11/01/99)
52-Week Range: 48 3/4 - 74 3/8
Shares Outstanding: 160.0 million
Registered Shareholders: 8,843
Institutional Ownership: 75%
Average Daily Trading Volume:
2nd Quarter FY 2000 - 595,036
Market Cap: $10.8 billion
RESEARCH COVERAGE
A.G. Edwards (Mark Jordan)
Bear, Stearns (Jim Kissane)
Brown Brothers Harriman (Greg Gieber)
CS First Boston (Mark Wolfenberger)
Donaldson, Lufkin & Jenrette
(Thomas Rooney)
ING Baring Furman Selz
(Brian Maimone)
Goldman Sachs (Greg Gould)
J.P. Morgan Securities (Raimundo Archibold)
Lehman Brothers
(Karl Keirstead)
Merrill Lynch (Steve McClellan)
Morgan Stanley DW (David Togut)
PaineWebber (Andrew Burns)
SG Cowen & Co. (Moshi Katri)
Sound View Financial Group
(Gary Helmig)
Standard & Poors
(Brian Goodstadt)
Value Line (David Rosenfield)
http://www.csc.com/invest/hilites10_00.html (3 of 5) [03/29/2001 9:36:38 PM]
![Investor Relations 2nd Quarter Fiscal 2000
Second Quarter Fiscal 2000 ( Ended October 1, 1999)
Earnings Summary
Research Coverage
Financial Highlights
CSC's Business EARNINGS SUMMARY
Computer Sciences “CSC’s wide range of services, business diversity and large base of long-term
Corporation helps clients in
contracts enabled the company to deliver solid quarterly results in a
industry and government use
Y2K-impacted information technology market. In the first half of fiscal 2000
information technology to
we announced a total of $5.3 billion in new awards -- more than the $5.1
achieve strategic and
operational objectives. With billion total, excluding our IRS award, announced for all of last year. We
54,000 employees in more continued to enjoy significant demand for outsourcing and other services,
than 700 offices worldwide,
and we are seeing a rapid acceleration in requests for our integrated
the company tailors solutions
e-business solutions.quot;
from a broad suite of
integrated service and
Van B. Honeycutt
technology offerings, including
e-business strategies and Chairman, President and Chief Executive Officer
technologies; management and Computer Sciences Corporation
I/T consulting; systems
development and integration; Computer Sciences Corporation earnings per share for its fiscal 2000 second
application software; and I/T
quarter rose 22.2% to 55 cents per share (diluted) from 45 cents per share for
and business process
the comparable quarter last year.
outsourcing.
Net income for the quarter increased 22.7% to $89.6 million from the $73
Since its formation in 1959,
CSC has been known for its million reported a year ago. Revenues for the second quarter were up 15.1% to
flexibility in its relationships $2.13 billion compared with the $1.85 billion for the prior year period.
with clients. Through
numerous agreements with Strong growth in global commercial revenue, up 19.2%, and improved
hardware and software
operating performance were the principal contributors to the net income gain.
technology firms, the company
U.S. commercial revenue growth benefited from strong contributions from
is able to identify and manage
solutions specifically tailored outsourcing awards announced earlier this year and from CSC’s healthcare
to each client's needs. vertical.
CSC had revenues of $8.2
CSC’s rolling 12 month net income margin, excluding special items, has
billion for the 12 months
improved for nine consecutive quarters. The company has exceeded its revenue
ended October 1, 1999.
budget for each of the first two quarters and is comfortably on plan to achieve
approximately $9 billion of revenue for fiscal 2000, excluding the contribution
from the previously announced Nichols Research transaction which will be
accounted for as a pooling-of-interests.
European revenue for the quarter rose 14.5% to $621.5 million from $542.6
million last year. The effect of currency fluctuations reduced European growth
by about three percentage points.
Last year’s fourth-quarter acquisition of Singapore-based CSA Holdings and a
solid increase from CSC Australia drove the dramatic 63.1% growth in other
http://www.csc.com/invest/hilites10_00.html (1 of 5) [03/29/2001 9:36:38 PM]](https://image.slidesharecdn.com/1099204/85/computer-sciences-FY-2000-Q2-1-320.jpg)
![Investor Relations 2nd Quarter Fiscal 2000
international revenue to $195.4 million from $119.8 million.
CSC’s revenues from the U.S. federal government rose 1.9% to $449.3 million
from last year’s $440.9 million, and is consistent with the company’s
expectation that fiscal 2000 full year federal growth will reach the mid-single
digit range. Department of Defense (DoD) revenue declined slightly, reflecting
the end of certain contracts. Civil agency revenues grew 9.3% as growth from
other civil agencies more than offset expected NASA reductions.
CSC ’s federal market pipeline of opportunities over the next 30 months is an
extremely robust $22 billion and the overall market for information technology
services to the U.S. federal government is as vital as it has ever been.
Escalating e-business engagements place CSC well on the way to achieving a
substantial increase in such revenues for fiscal 2000. The rapidly growing
utilization of the Web to enhance the competitiveness and efficiency of clients
presents abundant opportunities for CSC, which is uniquely positioned to offer
end-to-end capabilities encompassing a balance of strategy, experience and
technology. These exciting developments in e-business applications and
solutions are being driven by the need of both public and private organizations
to achieve higher levels of responsiveness, customer satisfaction and results.
CSC's SERVICES ENCOMPASS THREE KEY AREAS:
MANAGEMENT AND INFORMATION TECHNOLOGY CONSULTING
Dramatically improve client organizations' operations. Often streamlines basic business processes.
SYSTEMS DEVELOPMENT, AND INTEGRATION
Design, develop and build information technology systems. Combine hardware, software and communications into more
productive systems.
OPERATIONS SUPPORT AND INFORMATION SERVICES OUTSOURCING
Directly operate clients' information systems. CSC often acquires clients' systems and employees.
RECENT ENGAGEMENTS INCLUDES:
United Technologies Corp. (UTC) – -- CSC and United Technologies Corp., a Fortune 50 diversified
manufacturer, have signed a new outsourcing agreement which incorporates a prior contract signed with Pratt &
Whitney, UTC’s largest business unit. As part of the new contract, CSC will consolidate and streamline the I/T
infra- structure for all of UTC’s North American information technology infrastructure.
Hughes Electronics -- An original seven-year I/T outsourcing agreement announced in January 1995 with Hughes
Electronics has been extended to December 2004. The agreement marks the second long-term outsourcing contract
that a major client has chosen to extend with CSC and is indicative of the business value of outsourcing.
San Diego County -- The Pennant Alliance, a consortium of companies led by CSC, has been selected to create a
virtual government for the County of San Diego that will provide its citizens greater accessibility to County
services. The selection of the Pennant Alliance culminates a 15-month competitive phase and represents the largest
I/T outsourcing project carried out by a local government agency in the United States.
U.S. Department of Education (DoE) -- CSC has been selected to provide data center operations and support to
the Federal Family Education Loan System of the DoE’s Office of Student Financial Assistance. CSC will be
responsible for migrating and consolidating data center operations in support of financial aid programs
administered by the DoE.
CheMatch.com -- Through a strategic partnership, CSC will enhance the online trading and information platform
of CheMatch.com, a real-time, online trading exchange serving the $1.6 trillion global chemical industry.
http://www.csc.com/invest/hilites10_00.html (2 of 5) [03/29/2001 9:36:38 PM]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)