More like this

Business

Arrow

The Channel

Revenue drops at IT giant CSC... 'Good progress' says chief

Don't worry, 'transformation' efforts are underway

Revenue at CSC fell by 3.4 per cent to $3.08bn for the firm's second quarter as "transformation efforts" took hold at the IT giant.

Meanwhile, operating income fell 3.3 per cent compared to the same period last year – to $340m. Half-year net income fell by $112m to $307m, compared with the first six months of 2013.

Sales were down across CSC's three divisions for the quarter, but the firm's Global Infrastructure Services segment took the biggest hit - with revenue dropping 6.9 per cent to $1.036bn.

Growth in next-generation offerings of cloud and cyber helped to partially offset the impact of price-downs in the division, restructuring and contract conclusions, said the firm in a statement.

Revenue for CSC's Global Businesses Services segment fell 1.9 per cent to 1bn, while its North American Public Sector division fell 1 per cent to 1.04bn.

Chief executive Mike Lawrie said the results reflected the firm's "transformation efforts" and demonstrate "good progress" for the quarter.

He said: “In the commercial business, we delivered solid improvements in profitability and are showing good revenue growth in our next-generation offerings, which is helping to offset headwinds in the infrastructure business. Our public sector business has seen a normalization of revenue and continues to deliver strong margins, which is helping to drive overall earnings growth.”

CSC has approximately 74,000 employees and reported revenue of $12.9bn for the 12 months ended 3 October, 2014. ®

Sponsored: Customer Identity and Access Management