CSC Gets Boost From Government Spending

CSC, the third-largest IT services vendor, said Tuesday that net income increased 19 percent year over year to $110.4 million during the three months ended July 2. Per-share earnings rose 18 percent to 58 cents while revenue jumped 5.1 percent to $3.7 billion.

For the period, CSC's sales of IT and consulting services to the federal government rose 5 percent to $1.58 billion while sales to commercial customers in the United States decreased 2.8 percent to $911.6 million. But sales in Europe jumped sharply, rising 14.8 percent to 940.1 million. The value of new contracts secured by CSC in its first quarter totaled $4.9 billion, including a $1.6 billion, 10-year deal to provide outsourcing services to Sears, Roebuck and Co.

Looking ahead, CSC officials said they expect revenue growth between 7 percent and 9 percent in the second quarter and are "comfortable" with analysts' earnings-per-share estimates of between 63 cents and 68 cents.

*This story courtesy of InformationWeek.com.