US gov helps CSC to profit
Two thirds of sales go to Uncle Sam
CSC brought in revenues of $4bn, up almost 30 per cent, for the fourth quarter ended 2 April 2004. The company made a profit of $190.6m in the period. This contributed to annual revenue of $14.8bn, up 30.2 per cent on 2003, or 25 per cent in constant currency. Profits were $519.4m after the after-tax special charge.
65 per cent of revenue in the fourth quarter came from US government projects following the acquisition of DynCorp. Revenues from federal government jumped 64 per cent to $1.64bn. CSC brought in $988.8m from the Department of Defense during the fourth quarter.
CSC chairman and chief exec Van B Honeycutt said:"The strong performance of our U.S. federal government sector and our commercial outsourcing activities resulted in 83% of our annual revenue coming from long-term agreements. The healthy state of the pipeline of opportunities for both commercial outsourcing and the U.S. federal government gives us confidence in the future of this long-term revenue base.
"Looking at the next 23 months, our federal pipeline stands at approximately $31 billion, with the majority of these opportunities stemming from the Department of Defense. Approximately $21 billion of that total is scheduled to be awarded during our fiscal 2005.
Honeycutt expects revenue growth of between 8 and 10 per cent for 2005.®