1. Quar terly Highlights
Second Quarter Fiscal 2005 (Ended October 1, 2004)
We have continued our success in winning new business in the global commercial and U.S. federal markets.
About CSC
During the 12 months since the end of the second quarter of fiscal 2004, we won 31 awards valued at
$100 million or greater. Of those, five exceeded $1 billion. The awards during that period were well balanced
Founded in 1959,
between global commercial and U.S. federal at approximately 50% each.
Computer Sciences
Corporation is a leading Van B. Honeycutt
information technology Chairman and Chief Executive Officer
Computer Sciences Corporation
(IT) services company.
CSC’s mission is to provide
CSC results for fiscal 2005 second quarter included: revenue of $3.93 billion, up 9.6% over last year’s second
customers in industry
quarter (approximately 6% in constant currency); net income of $130.5 million; net earnings per share (diluted)
and government with
of 68 cents, compared with last year’s 57 cents including a three-cent after-tax special charge; and announced
solutions crafted to meet major new business awards were $3.9 billion.
their specific challenges Both of CSC’s reporting segments, global commercial and U.S. federal government, delivered solid
and enable them to profit contributions to the quarter’s revenue growth. Over the 12 months ending October 1, 2004, $18.2 billion
from the advanced use in announced awards served as an important catalyst for this performance. Global commercial revenue
of technology. also benefited from favorable currency movements.
As one of the top U.S. federal information technology contractors and a leader in the federal IT systems
integration market, CSC is well positioned to capitalize on the growth of IT services within the federal govern-
With approximately
ment. The company anticipates continued demand for the modernization of infrastructure for the government’s
91,000 employees, CSC
agencies and departments, improvement of homeland security technology and business/organizational change
provides innovative
within the U.S. Department of Defense.
solutions for customers
The demand environments for short-term commercial consulting and systems integration services continue
around the world by
to differ based on geography. In North America, second quarter revenue improved slightly both sequentially
applying leading tech-
and year-over-year while the demand for similar services in Europe and Asia Pacific remains soft with
nologies and CSC’s own engagements remaining very price competitive. Revenue generated from new, large and long-term engagements
advanced capabilities. in Europe continues to offset the effect of soft demand for shorter-term project work in that market.
These include systems For the second quarter, revenue derived from CSC’s U.S. federal government activities continued to
design and integration; reflect positive demand for CSC’s broad range of services. Revenue increased to $1.67 billion, up 8.2% from
IT and business process last year’s $1.55 billion. Revenue generated from CSC’s civil agencies activities grew to $664.2 million, up
31.5% from last year’s second quarter. The gain for the quarter was primarily derived from work for the
outsourcing; applications
U.S. Department of State and intelligence community-related activities. CSC’s DoD-related revenue declined
software development;
to $956.0 million from the comparable quarter a year ago. The decline was principally attributable to the
Web and application
previously disclosed completion of the Ft. Rucker helicopter maintenance contract and the negative impact
hosting; and management
of a previously consolidated joint venture’s revenue no longer being reported because CSC is now a minority
consulting.
owner. Other federal revenue, comprised of state and local government as well as commercial contracts per-
formed by the U.S. federal sector reporting segment, declined to $52.4 million from last year’s second quarter.
Headquartered in Global commercial revenue was up 10.6% (approximately 5% in constant currency) to $2.26 billion from
El Segundo, California, last year’s second quarter. U.S. commercial revenue was $929.2 million, up 2.4%, from last year. European
CSC reported revenue revenue rose 21.5% (approximately 10% in constant currency) to $1.03 billion from last year’s second quarter.
of $15.3 billion for Global commercial and European revenue were the beneficiaries of meaningful new IT services engagements
the 12 months ended and favorable currency exchange rate movements. CSC’s non-European international revenue was $297.8
million, up 3.9% (down approximately 2% in constant currency), compared with last year.
October 1, 2004.
FINANCIAL HIGHLIGHTS
2ND QUARTER FISCAL 2005
REVENUES BY BUSINESS SEGMENT (unaudited)
Commercial U.S. Federal
57% 43%
Second Quarter Six Months Ended
($ in millions)
$ in millions,except 10/1/04 10/1/04
10/3/03 10/3/03
U.S. Commercial – $929.2
23% 25% per-share amounts
Europe – $1,034.9
Revenues $ 3,934.5 $ 7,670.9 $ 7,146.0
$ 3,591.2
Other International – $297.8
17%
26% Net Income $ 130.5 $ 240.9 $
$ 108.1 200.4
U.S. DoD – $956.0
8% U.S. Civil Agencies – $664.2 Diluted Earnings
Per Share $ 0.68 $ 1.26 $
$ 0.57 1.06
1% Other U.S. Federal – $52.4
Total – $3,934.5

2. • U.S. Army – DynCorp Technical Services
CSC’S SERVICES ENCOMPASS INVESTMENT DATA
(DTS), a CSC company, is one of four
SEVERAL BROAD AREAS NYSE: CSC
• Outsourcing – Involves operating all firms selected to support the U.S. Army Recent Closing Price: 54.90 (11/15/04)
Forces Command (FORSCOM) under the
or a portion of a customer’s technology 52-Week Range: 38.07 – 55.29
Aviation Joint Administrative Manage-
infrastructure. CSC also provides Shares Outstanding: 189.3 million
ment Support Services (AVJAMMS)
business process outsourcing, which is Registered Shareholders: 11,725
contract. Under the terms of the award,
the management of a client’s non-core Institutional Ownership: 81%
DTS will compete for task orders to
business functions. Average Daily Trading Volume:
provide aviation maintenance, project 2nd Quarter FY 2005 – 898,498
• management and training support for
IT & Professional Services – Market Cap: $10.3 billion
FORSCOM activities around the world.
Designing, developing, implementing
and integrating complete information RESEARCH COVERAGE
• United States Strategic Command
systems, as well as advising clients on A.G. Edwards (Timothy Willi)
(USSTRATCOM) – USSTRATCOM
the strategic acquisition and utilization Bear, Stearns ( Jim Kissane)
signed an agreement for CSC to provide
of IT. Bernstein (Rod Bourgeois)
IT infrastructure support services. CSC CS First Boston (Dris Upitis)
will provide all operations, maintenance,
RECENT ENGAGEMENTS INCLUDE: Deutsche Bank (Brandt Sakakeeny)
• Ascension Health – CSC signed an IT logistics, systems engineering, program Goldman Sachs (Greg Gould)
management and procurement functions
services contract with Ascension Health, J.P. Morgan Securities (Tien-tsin Huang)
required to sustain the command’s IT
the largest U.S. nonprofit health system. Jefferies & Co. ( Joe Vafi)
infrastructure. CSC’s experience pro-
The new agreement follows and is KeyBanc Capital Markets (Michael Keller)
viding management and modernization
incremental to a September 2003 IT Legg Mason (Bill Loomis)
services for large, mission-critical IT
services contract. Under the new Lehman Brothers (Louis Miscioscia)
systems will help provide the results
contract, CSC will manage IT opera- Merrill Lynch (Greg Smith)
the command requires to accomplish
tions for 32 Ascension Health ministries Morgan Stanley (David Togut)
its important missions.
and 80 facilities. Prudential Securities (Bryan Keane)
Robert W. Baird (Timothy Byrne)
•
• Zurich Financial Services (Zurich) –
Royal Australian Navy (RAN) – CSC SG Cowen & Co. (Moshe Katri)
Zurich Financial Services, a world-
won a contract to design and install Smith Barney Citigroup (Pat Burton)
leading, insurance-based financial
a shipboard and shore-based IT infra- Standard & Poor’s ( Richard Stice)
services provider, selected CSC for an
structure for RAN. CSC will provide Thomas Weisel Partners (David Grossman)
IT applications outsourcing contract.
technical, analytical, engineering, UBS Warburg (Adam Frisch)
CSC will assume responsibility for the
program management and adminis- Value Line (George Niemond)
provision of all applications development
trative support for 17 RAN frigates, as
and support services to Zurich’s busi-
well as supply, refueling and support SHAREHOLDER SERVICES
nesses in the United States, the United
ships, and three naval communications For more information regarding CSC:
Kingdom, Switzerland and Germany.
stations.
• Shareholder services and literature
request line – (800)542-3070
CSC REVENUE GROWTH FIRST SIX MONTHS FISCAL 2005
•
FY 2000-2004* REVENUES BY BUSINESS SERVICE* Web site – www.csc.com
$ in billions
$ 16
• Registrar and transfer agent –
18% Mellon Investor Services
P.O. Box 3315
40%
12
S. Hackensack, New Jersey 07606
39%
(800)676- 0654 or (201)329- 8660
www.MellonInvestor.com
8
3%
• CSC Investor Relations –
OUTSOURCING . . . . . . . . . . . . . . . . . . . . 43%
Bill Lackey
Global Commercial 40%
4
U.S. Federal Sector 3% Director, Investor Relations
IT & PROFESSIONAL SERVICES . . . . . . . . 57% (310)615-1700
Global Commercial 18%
U.S. Federal Sector 39%
FY00 FY01 FY02 FY03 FY04 Lisa Runge
Manager, Investor Relations
* CSC’s fiscal year ends the Friday closest to March 31. * Based on CSC estimates.
(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 October 1, 2004.
Printed in U.S.A. WH# CC-2Q05