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

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

By | Kat Hall 7th November 2014 16:31

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. ®