1. Quar terly Highlights
First Quarter Fiscal 2004 (Ended July 4, 2003)
The $4.3 billion in announced new awards for our first quarter – with nearly 90% in the commercial
About CSC
sector – represents the largest quarterly total in a year and a half. The last two quarters’ new award
announcements have been very positive, totaling in excess of $8 billion, with 79% coming from the
Founded in 1959,
commercial sector. These recent new business awards and first-quarter performance reinforce our confidence
Computer Sciences
in the remainder of fiscal 2004.
Van B. Honeycutt
Corporation is a leading
Chairman and Chief Executive Officer
information technology
Computer Sciences Corporation
(IT) services company.
Computer Sciences Corporation results for its fiscal 2004 first quarter included: Revenue of $3.55 billion,
CSC’s mission is to provide
up 29.1% (approximately 23% in constant currency) over last year’s comparable quarter, including an impact of
customers in industry
approximately 4% from the additional week in this quarter; Net income of $92.3 million after the pre-tax special
and government with
charge of $6.2 million ($3.9 million after-tax) related to the March 7, 2003, acquisition of DynCorp; Net earnings
solutions crafted to meet
per share (diluted) of 49 cents after the approximately 2 cents per-share after-tax impact of the special charge.
their specific challenges
CSC’s U.S. federal government revenue was up 87.1%. This increase, attributable to the DynCorp acquisi-
and enable them to profit tion, was the primary driver of the quarter’s revenue performance. Revenues of $1.48 billion derived from the
from the advanced use U.S. federal government exceeded $1 billion during a quarter for the first time in the company’s history and
of technology. comprised 42% of the total quarterly revenue. CSC’s European revenue, benefiting from favorable currency
exchange rate movements, also contributed to the quarter’s revenue growth.
With approximately The ongoing integration of DynCorp has been proceeding on target. Coupled with CSC’s legacy position
as a leading IT services provider to the U.S. federal government, the DynCorp acquisition has further solidified
92,000 employees, CSC
the company’s role as a qualified, dependable, competent and experienced choice to support the federal
provides innovative
government’s efforts to modernize and improve the efficiencies of its agencies and departments. The current
solutions for customers
32-month federal pipeline of opportunities is approximately $38 billion.
around the world by
The demand continues to be solid for global commercial IT infrastructure outsourcing. CSC’s efforts and
applying leading tech-
emphasis are directed toward providing creative solutions which enhance the competitiveness and operating
nologies and CSC’s own efficiencies of its global commercial and government clients.
advanced capabilities. CSC’s consulting and systems integration activities in North America, while not showing a significant
These include systems uplift, seem to have stabilized with a slight revenue increase in the first quarter, both sequentially and year-
design and integration; over-year. However, the demand for similar short-term commercial IT services in Europe and Asia remains
IT and business process soft. Recent outsourcing wins in Europe have served to offset that softness, and solid European outsourcing
outsourcing; applications opportunities continue to provide encouragement.
For the fiscal second quarter, ending October 3, 2003, CSC anticipates revenues will be up approximately
software development;
27% to 29%, and earnings per share (diluted) will be in the 58 cents to 60 cents range. For the rest of the
Web and application
hosting; and management year, CSC management is comfortable with the consensus revenue and earnings-per-share estimates. These
quarterly and yearly estimates exclude any DynCorp acquisition-related special charge.
consulting.
For the first quarter, CSC’s U.S. federal government revenue growth reflected the recent DynCorp
acquisition impact. Revenues increased 87.1% to $1.48 billion; DoD revenues nearly doubled to $904.6 million;
Headquartered in Revenue from CSC’s Civil agencies business rose to $575.6 million, up 80.6%.
El Segundo, California, Global commercial revenues were up 5.7% (down approximately 2% in constant currency): U.S. commer-
CSC reported revenue cial revenue was $962.1 million, down 3.4%; European revenue was $819.2 million, up 20.7% (approximately
of $12.1 billion for the 12 2% in constant currency; CSC’s non-European international revenue was up 2.0% (down approximately
months ended July 4, 2003. 8% in constant currency) to $293.3 million.
FINANCIAL HIGHLIGHTS
1ST QUARTER FISCAL 2004
REVENUES BY MAJOR MARKET (unaudited)
First Quarter
Commercial U.S. Federal
58% 42% 6/28/02
$ in millions, except per-share amounts 7/4/03
($ in millions)
U.S. Commercial – $962.1
$ 2,753.7
Revenues* $ 3,554.8
27% 26%
Europe – $819.2
Other International – $293.3
$ 79.0
Net Income $ 92.3
16% U.S. DoD – $904.6
23%
U.S. Civil Agencies – $575.6
8%
$ 0.46
Diluted Earnings Per Share $ 0.49
Total – $3,554.8
* Figures have been adjusted to conform to CSC’s current presentation.

2. •
CSC’S SERVICES ENCOMPASS INVESTMENT DATA
Marconi Corporation – Marconi, a
SEVERAL BROAD AREAS NYSE: CSC
global telecommunications equipment,
• Outsourcing – Involves operating all Recent Closing Price: 42.64 (8/22/03)
services and solutions company, has
or a portion of a customer’s technology 52-Week Range: 24.30 – 44.08
selected CSC for an IT outsourcing
infrastructure. CSC also provides Shares Outstanding: 187.1 million
agreement. CSC will support and
business process outsourcing, which is Registered Shareholders: 11,280
manage Marconi’s IT help desk,
the management of a client’s non-core Institutional Ownership: 81%
desktop computing, networking and
business functions. Average Daily Trading Volume:
midrange operations; develop and
1st Quarter FY 2003 – 1,695,197
maintain software applications; and
• Consulting, Systems Integration Market Cap: $8.0 billion
provide telecommunications services.
and Professional Services – Designing,
•
developing, implementing and integrat- RESEARCH COVERAGE
Royal Mail Group – Royal Mail
ing complete information systems, as A.G. Edwards (Greg Gieber)
Group, a UK government-owned
well as advising clients on the strategic Bear, Stearns ( Jim Kissane)
public limited company providing
acquisition and utilization of IT. Bernstein (Rod Bourgeois)
mail, parcels and express services,
CS First Boston (Dris Upitis)
has outsourced its data centers, data
RECENT ENGAGEMENTS INCLUDE: Deutsche Bank (Bill Zinsmeister)
networks and more than 600 business
• The Boeing Company – CSC has been Goldman Sachs (Greg Gould)
application systems to the CSC-led
awarded a contract to provide mainframe J.P. Morgan Securities (Dirk Godsey)
Prism alliance. This contract under-
computing operations services to Boeing. Jefferies & Co. ( Joe Vafi)
scores CSC’s experience and history
Beginning in 2004, CSC will provide Legg Mason (Bill Loomis)
of providing operational and financial
services to selected Boeing facilities in Lehman Brothers (Louis Miscioscia)
results for clients in managing highly
support of the Boeing Integrated Defense McDonald Investments (Michael Keller)
complex, large-scale outsourcing
Systems business unit, one of the world’s Morgan Stanley (David Togut)
programs.
largest defense and space businesses. Prudential Securities (Bryan Keane)
•
This award underscores CSC’s position Scotia Capital (Peter Misek)
U.S. State Department – DynCorp
as the most experienced, results-driven SG Cowen & Co. (Moshe Katri)
International, a CSC company, was
IT services provider of choice in the Smith Barney Citigroup (Pat Burton)
awarded a contract from the United
aerospace and defense market. SoundView ( John Jones, Jr.)
States Department of State to provide
Standard & Poor’s ( Richard Stice)
up to 1,000 civilian advisors to help
• ISS A/S – CSC has signed an IT Thomas Weisel Partners (David Grossman)
the government of Iraq organize
outsourcing agreement with ISS A/S, UBS Warburg (Adam Frisch)
effective civilian law enforcement,
a global leader in facility services. U.S. Bancorp Piper Jaffray
judicial and correctional agencies.
Under the terms of the agreement, (T. Brett Manderfeld)
The company will also provide all
CSC will assume responsibility for the Value Line (George Niemond)
logistical, technical and administrative
full range of IT services at more than support necessary to accomplish the
800 ISS sites throughout Europe. SHAREHOLDER SERVICES
advisors’ mission.
For more information regarding CSC:
• Shareholder services and literature
CSC REVENUE GROWTH 1ST QUARTER FISCAL 2004 request line – (800)542-3070
FY 1999-2003* REVENUES BY BUSINESS SERVICES*
• Website – www.csc.com
$ in billions
$ 12
•
17% Registrar and transfer agent –
39% Mellon Investor Services
P.O. Box 3315
37%
10 S. Hackensack, New Jersey 07606
7% (800)526 - 0801 or (201)329- 8660
www.melloninvestor.com
OUTSOURCING . . . . . . . . . . . . . . . . . . . 46%
8
•
Global Commercial 39% CSC Investor Relations –
Federal Sector 7%
Bill Lackey
CONSULTING, SYSTEMS INTEGRATION Director, Investor Relations
AND PROFESSIONAL SERVICES . . . . . . . 54%
6 (310)615-1700
Global Commercial 17%
FY99 FY00 FY01 FY02 FY03
Federal Sector 37%
Lisa Runge
* CSC’s fiscal year ends the Friday closest to March 31. * Based on CSC estimates. Manager, Investor Relations
(310)615-1680
All statements in this document that do not directly and exclusively relate to historical facts
constitute “forward-looking statements” within the meaning of the Private Securities Litigation
Email: InvestorRelations@csc.com
Reform Act of 1995. These statements represent the Company’s intentions, plans, expectations
and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside
• Headquarters
the Company’s control. These factors could cause actual results to differ materially from such
2100 East Grand Avenue
forward-looking statements. For a description of these factors, see the section titled “Forward-
El Segundo, California 90245, USA
Looking Statements” in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter
(310)615-0311
ended July 4, 2003.
Printed in U.S.A. WH# CC-1Q04