1. Computer Sciences Corporation
QUARTERLY HIGHLIGHTS THIRD QUARTER FISCAL 2 0 0 1 (E NDE D DECEMBER 2 9 , 2 0 0 0 )
ABOUT CSC We are pleased with our financial performance for the third quarter during a challenging and turbulent
period for IT service providers. The strong revenue growth resulting from our federal government vertical
Computer Sciences market, coupled with the continuing strength in commercial outsourcing, were the principal contributors
Corporation, one of the to our increased quarterly revenue performance.
world’s leading consulting Van B. Honeycutt
and information technology Chairman, President and Chief Executive Officer
(IT) services firms, helps
Computer Sciences Corporation
clients in industry and
For the third quarter (ended December 29): revenues were $2.7 billion, a 12.9% increase over
government achieve
fiscal 2000 (or approximately 19% in constant currency); earnings, before special items, increased
strategic and operational
9.6% to $122.9 million; earnings per share (diluted), before special items, were 72 cents, a 9.1% increase
results through the use of
versus fiscal 2000’s 66 cents; net income and earnings per share (diluted) were $65.6 million and 38 cents,
technology. The company’s
respectively; and announced major new business awards were $1.8 billion.
success is based on its
For the nine months (ended December 29): revenues were $7.6 billion, up 12.2% over the comparable
culture of working collabo-
nine-month period of fiscal 2000 (or approximately 17% in constant currency); earnings, before special
ratively with clients to
items, increased 13.1% to $327.9 million; earnings per share (diluted), before special items, were $1.92, a
develop innovative tech-
12.3% increase over the $1.71 for last year’s comparable period; net income and earnings per share (diluted)
nology strategies and solu-
were $270.6 million and $1.58, respectively; announced major new business awards totaled $9.4 billion.
tions that address specific
The third quarter’s results were impacted adversely by the effects of currency, severance costs
business challenges.
associated with headcount reductions in CSC’s global IT consulting practices and lower than anticipated
healthcare market software licensing sales late in the quarter. The company has responded to these
Having guided clients
market factors by swiftly implementing additional cost containment activities.
through every major wave
The results for the third quarter include special items of $84.2 million ($57.3 million after tax), or
of change in information
34 cents per share which consisted of the restructuring of CSC’s global financial services activities resulting
technology since 1959,
from the acquisition of Mynd Corporation and final resolution of items from operations previously sold
CSC combines the newest
or phased out.
technologies with its
For the third quarter, global commercial revenues grew 11.1% (or approximately 19% in constant
capabilities in consulting,
currency), to $2 billion compared with $1.8 billion in last year’s third quarter. An increase in U.S.
systems design and inte-
commercial revenue of 10.5% to $999.6 million from last year’s $904.6 million, and an increase in non-
gration, IT and business
European international revenue of 22.1% (or approximately 36.2% in constant currency) to $314.2 million
process outsourcing, appli-
from last year’s $257.4 million, contributed to this performance. European revenue was $703.4 million,
cations software, and Web
and application hosting up 7.5% (or approximately 24.2% in constant currency) from last year’s $654.3 million. The excellent
to meet the individual local currency revenue growth in Europe was predominantly driven by outsourcing activities.
needs of global corporations Revenue derived from CSC’s U.S. federal government activities continued to show significant growth,
and organizations. increasing to $647.5 million, up a strong 19.1% from the $543.8 million recorded in last year’s third
quarter. Both civil agencies and Department of Defense (DoD) activities generated double-digit revenue
With more than 68,000 growth over the comparable period last year. CSC’s civil agencies business rose 22.2% to $248.1 million,
employees in locations up from $203.1 million last year. DoD revenue climbed to $399.4 million, up 17.2% from last year’s
worldwide, CSC had $340.7 million.
revenues of $10.2 billion The company has announced major new business awards of $9.9 billion so far in the current fiscal
for the 12 months ended year. With a strong opportunity pipeline in both the commercial and federal markets, it is anticipated
December 29, 2000. CSC will close out another year of solid results.
3RD QUARTER FISCAL 2001 FINANCIAL HIGHLIGHTS
(unaudited)
Revenues By Major Market
Third Quarter Nine Months Ended
$ in millions, except 12/29/00
12/29/00 12/31/99
12/31/99
Federal
Commercial
per-share amounts
24%
76%
($ in millions)
Revenues $ 6,795.5
$ 2,360.1 $ 7,626.9
$ 2,664.7
U.S. Commercial — $999.6
15%
Europe — $703.4
9%
38%
65.6 * 82.3 ** $ 270.6 *
Net Income $ 260.0 **
$
$
Other International — $314.2
12% U.S. DoD — $399.4
Diluted Earnings
U.S. Civil Agencies — $248.1
26% 0.38 * 0.48 ** $ 1.58 *
Per Share $ 1.54 **
$
$
* Includes special items of $84.2 million ($57.3 million after income taxes), or 34 cents per share (diluted).
Total – $2,664.7 ** Includes special items totaling $41.1 million ($29.8 million after income taxes), or 18 cents per share (diluted).

2. provide computing resources and
CSC’S SERVICES ENCOMPASS THREE BROAD INVESTMENT DATA
support services to enable space and NY SE: CSC
AREAS:
Earth scientists funded by NASA to
• Management and Information Recent Closing Price: 62.50 (2/13/01)
accomplish their research goals.
Technology Consulting – Dramatically 52-Week Range: 51.56 – 99.88
improve client organizations’ operations. Shares Outstanding: 168.6 million
• MedUnite – MedUnite, a service
Often streamline basic business Registered Shareholders: 9,794
company founded by leading health
processes. Institutional Ownership: 73%
plans to reduce administrative Average Daily Trading Volume:
inefficiencies in the U.S. healthcare
• Systems Development and Integration 3rd Quarter FY 2001 – 787,308
market, has selected CSC to play a
– Design, develop and build information Market Cap: $10.5 billion
leading role in the company’s effort to
technology systems. Combine hardware,
create an e-commerce solution that con-
software and communications into RESEARCH COVERAGE
nects healthcare payors and providers.
more productive systems. A.G. Edwards (Greg Gieber)
CSC will serve as MedUnite’s IT support
Bear, Stearns ( Jim Kissane)
contractor and systems integrator.
• Outsourcing and Operations Support
CS First Boston (Mark Wolfenberger)
and Information – Directly operate
• Global Crossing – As part of a global
clients’ information systems. CSC ING Barings (Brian Maimone)
strategic alliance with Global Crossing,
often acquires clients’ systems and
Goldman Sachs (Greg Gould)
CSC has received preferred provider
employees.
J.P. Morgan Securities (Bob St. Jean)
status which will enhance Global
Lehman Brothers (Karl Keirstead)
Crossing’s IT infrastructure through
RECENT ENGAGEMENTS INCLUDE:
joint development of SAP, Customer
• U.S. Department of State – CSC Merrill Lynch (Steve McClellan)
Relationship Management, and
was awarded contracts to assist U.S.
Morgan Stanley DW (David Togut)
Web-based billing systems. Through
embassies and consulates worldwide.
SG Cowen & Co. (Moshe Katri)
a joint marketing arrangement, the
CSC will implement e-government
companies plan to deliver integrated
solutions to improve visa processing Salomon Smith Barney (Pat Burton)
solutions to multinational organizations.
and issuance services through customer
Wit SoundView (Gary Helmig)
contact centers with integrated voice
Standard & Poor’s ( Jonathan Rudy)
• National Institutes of Health (NIH) –
response systems and web services.
Value Line (George Niemond)
CSC has been selected as one of more
than 40 companies that will compete for
• NASA – CSC will support NASA’s
SHAREHOLDER SERVICES
work under a multiple-award contract
Center for Computational Sciences
For more information regarding CSC:
in support of the NIH National
(NCCS) at Goddard Space Flight
Information Technology Acquisitions
Center. CSC will acquire, install and
• Shareholder services and literature
and Assessment Center. Under the
manage the latest supercomputer
request line – (800) 542-3070
contract, CSC will provide IT solutions
systems on a multi-year technology
covering a broad range of products,
refresh basis, and provide services
• Facsimile service – (800) 962-7328
services and solutions.
in support of the NCCS mission to
• Website – http://www.csc.com
FY 2000 REVENUES
CSC REVENUE GROWTH FY 1996-2000*
BY BUSINESS SERVICES* • Registrar and transfer agent –
$ 10 $ in billions Mellon Investor Services
P. O. Box 3315
Systems
Outsourcing
Integration
S. Hackensack, New Jersey 07606
8 (201) 329- 8660 or (800) 526 - 0801
39%
• CSC Investor Relations –
24%
Bill Lackey
6
37% Director, Investor Relations
(310) 615 -1700
4 Management Consulting/
FY96 FY97 FY98 FY99 FY00
Lisa Runge
Professional Services
Manager, Investor Relations
* CSC’s fiscal year ends the Friday closest to March 31. * Based on CSC estimates.
(310) 615 -1680
All statements in this document that do not directly and exclusively relate to historical
Email: InvestorRelations@csc.com
facts constitute “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent the Company’s intentions,
plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, • CSC Headquarters
many of which are outside the Company’s control. These factors could cause actual 2100 East Grand Avenue
results to differ materially from such forward-looking statements. For a description
El Segundo, California 90245, USA
of these factors, see the section titled “Forward-Looking Statements” in the Company’s
(310) 615-0311
Quarterly Report on Form 10-Q for the fiscal quarter ended December 29, 2000.
Printed in U.S.A. WH# CC -3Q01