Computer Sciences Corp.'s fourth quarter earnings show how the company—officially on the block since April—could make an attractive target for technology outsourcers looking to bolster their business with the federal government. <P> Although CSC's fourth quarter net income plunged 52% year-over-year to $199.4 million, the company's revenues remained stable at $3.88 billion. What's more, its overall sales to the federal government during the quarter ended March 31 jumped 13% to $1.37 billion. Revenue from Department of Defense contracts climbed 22% to $919.5 million. CSC disclosed its quarterly earnings on Tuesday, and said the decline in net income was due in part to a series of one-time charges. <P> With its focus on highly sensitive, behind the scenes IT work at the military and domestic intelligence and law enforcement organizations like the FBI and the National Security Agency, CSC continues to benefit from Bush administration spending on the war on terror. A number of major defense and IT integrators, including Lockheed Martin, have expressed interest in acquiring CSC, though a deal remains elusive. "The concern is they could become shopworn," says a financial analyst who follows the company. <P> For its full fiscal year 2006, CSC said revenues increased 4% to $14.62 billion, while net income fell 22% to $634 million. Earnings per share rose 19% to $3.11. For fiscal 2007, CSC said it expects revenue to increase between 2% and 3%, and anticipates earnings per share to end up between $3.79 and $3.89.
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Public Display: Hot Scenes From XChange Public Sector Hundreds of VARs, integrators, vendors and analysts descended on the Sawgrass Marriott in Jacksonville, Fla., last week for XChange Public Sector. Here's a look at what you missed if you weren't there, from heated health-care and government discussion to just plain heat. |
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CRN 2010 Public Sector Awards: Meet The Big Winners CRN saluted four vendors and five VARs and integrators at XChange Public Sector in Jacksonville. Have a look at who took home the hardware this year, including Public Sector Integrator of the Year. |
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10 Burning Questions For The Public Sector Channel As XChange Public Sector kicks off in Jacksonville June 12, here's a look at some of the most pressing issues for public sector VARs and integrators, from cybersecurity and firm-fixed-price contracts to green technology and small business priorities. |
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