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computer sciences FY 2000 Q3
1. Investor Relations 3rd Quarter Fiscal 2000
Third Quarter Fiscal 2000 ( Ended December 31, 1999)
Earnings Summary
Research Coverage
Financial Highlights
CSC's Business EARNINGS SUMMARY
Computer Sciences Corporation โWe are pleased with this quarterโs excellent performance given the dramatic demand shifts for information
helps clients in industry and
technology services during the latter months of calendar 1999. The benefits from recent new business awards
government use information
and acquisitions and our focus on aggressive cost containment provided strong support for achieving our
technology to achieve strategic
financial results for the second half of calendar 1999. More specifically, we announced $3.5 billion in new
and operational objectives. With
54,000 employees in more than business awards during the third quarter. Including awards through January 2000, CSCโs year- to-date total is
700 offices worldwide, the $9.6 billion, compared with $5.1 billion, excluding the IRS award, for all of fiscal 1999.โ
company tailors solutions from a
broad suite of integrated service Van B. Honeycutt
offerings, including e-business
Chairman, President and Chief Executive Officer
strategies and technologies;
Computer Sciences Corporation
management and I/T consulting;
systems development and
Computer Sciences Corporation reported earnings per share, before special items, of 66 cents (diluted) for its fiscal
integration; application
software; and I/T and business 2000 third quarter, a 20% increase over the restated 55 cents for the same period last year. After special items,
process outsourcing. consisting principally of merger-related charges and other transaction costs, earnings per share were 48 cents on a
diluted basis. The special items total $41.1 million ($29.8 million after income taxes), or 18 cents per share
Since its formation in 1959, CSC
(diluted). All previous period results have been restated to reflect the November 16, 1999 merger with Nichols
has been known for its flexibility
in its relationships with clients. Research Corporation, accounted for as a pooling of interests.
Through numerous agreements
with hardware and software Revenues for the third quarter were up 14.9% (17.3% before the pooling of interests) to $2.4 billion compared with
technology firms, the company is the $2.1 billion for the prior-year period. Global commercial revenue rose 17.4%, while U.S. commercial revenue
able to identify and manage
grew 10.7%.
solutions specifically tailored to
each client's needs.
Nicholsโ revenue of $100 million for CSCโs fiscal 2000 third quarter ended December 1999 is compared to
Nicholsโ fiscal 1999 third quarter revenue of $127 million for its March to May period. As a result, a seasonally
CSC had revenues of $9.1 billion
for the 12 months ended lower quarter for Nichols is compared to its strongest quarter of the prior year.
December 31, 1999.
CSC continues to see a rapid acceleration in requests for integrated e-business solutions, and anticipates these
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2. Investor Relations 3rd Quarter Fiscal 2000
activities for fiscal 2000 to grow three-fold over last year.
CSCโs third quarter revenue from the U.S. federal government accelerated strongly, growing 7% (13.6% before the
pooling of interests) to $543.8 million from last yearโs $508.2 million. The growth was fueled by a 14.9% increase
from CSCโs civil agency business while Department of Defense (DoD) related revenue increased 2.8%. (Before the
Nichols merger, the growth rates for the civil agency and DoD-related revenue were 16.1% and 12%, respectively.)
CSCโs federal market pipeline of opportunities over the next 27 months is approximately $30 billion, greater than it
has ever been for this period of time. Within the federal environment, modernization and commercial best practice
opportunities, including the transition of federal employees to the private sector, are likely to become an important
part of the governmentโs I/T strategy. CSC is positioned exceptionally well to capture a large share of this market.
CSCโs European revenue for the quarter was $654.3 million, up 7.5% over last yearโs $608.5 million, and was
impacted adversely by 2.5 percentage points due to currency fluctuation. Importantly, growth in other international
markets was a robust 113.6%, driven by last yearโs fourth-quarter acquisition of Singapore-based CSA Holdings
and solid gains from CSC Australia. These markets continue to show excellent demand for CSCโs broad range of
I/T services.
CSC's SERVICES ENCOMPASS THREE KEY AREAS:
MANAGEMENT AND INFORMATION TECHNOLOGY CONSULTING
Dramatically improve client organizations' operations. Often streamlines basic business processes.
SYSTEMS DEVELOPMENT, AND INTEGRATION
Design, develop and build information technology systems. Combine hardware, software and communications into more productive systems.
OPERATIONS SUPPORT AND INFORMATION SERVICES OUTSOURCING
Directly operate clients' information systems. CSC often acquires clients' systems and employees.
RECENT ENGAGEMENTS INCLUDE:
United Technologies Corp. (UTC) โ -- Under a master agreement with UTC, CSC has signed additional contracts with two units of UTC,
Hamilton Sundstrand and Pratt & Whitney Canada. For Hamilton Sundstrand, CSC will manage mainframes, servers, and the help desk, local
area networks and about 8,100 desktop units. For Pratt & Whitney Canada, CSC will manage applications, a central help desk, midrange
computers, network operations, 6,000 desktop units.
General Electric Company (GE) -- CSC signed an I/T outsourcing agreement with GE to manage the data processing operations, help desk
and disaster recovery services for GE and GE Capital in the UK and other European countries. In addition, CSC acquired the Australian
operations of GE Capital ITS, a leading supplier of commercial and government organizations.
Saturn -- - CSC led a team of companies chosen by General Motors' Saturn Corporation to build the auto industry's first customer-driven
web-based retail management system. Saturn is the first to bring together leaders in I/T, automotive systems and e-business software to build a
system that will make car buying simple and flexible for customers.
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3. Investor Relations 3rd Quarter Fiscal 2000
Raytheon Company -- CSC signed an agreement with Raytheon to manage a significant portion of Raytheon's I/T infrastructure, including
mainframes and data centers. CSC also will assume management of help-desk support serving 90,000 users and network operations that include
voicemail and telecommunications.
U.S Army -- CSC has been awarded the U.S. Army Wholesale Logistics Modernization Program (WLMP) contract. This continues a trend by
U.S. federal agencies to turn to the private sector to obtain best commercial practices. CSC will reengineer and modernize the Army's wholesale
logistics business processes to support the client's vision for the next millennium.
Old Mutual Alliance -- Old Mutual, South Africa's largest financial services firm, has contracted with CSC to acquire and manage their I/T
infrastructure including mainframe and midrange computers, servers, desktops, help desk and system software support. This agreement makes
CSC a leading I/T services provider in South Africa.
INVESTMENT DATA
NYSE: CSC
Recent Closing Price: 90 3/4 (2/7/2000)
52-Week Range: 52 3/8 - 94 15/16
Shares Outstanding: 166.6 million
Registered Shareholders: 8,781
Institutional Ownership: 76%
Average Daily Trading Volume:
3rd Quarter FY 2000 - 859,270
Market Cap: $15.0 billion
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4. Investor Relations 3rd Quarter Fiscal 2000
RESEARCH COVERAGE
A.G. Edwards (Mark Jordan)
Bear, Stearns (Jim Kissane)
Brown Brothers Harriman (Greg Gieber)
CS First Boston (Mark Wolfenberger)
Donaldson, Lufkin & Jenrette (Thomas Rooney)
ING Baring Furman Selz (Brian Maimone)
Goldman Sachs (Greg Gould)
J.P. Morgan Securities (Bob St. Jean)
Lehman Brothers (Karl Keirstead)
Merrill Lynch (Steve McClellan)
Morgan Stanley DW (David Togut)
PaineWebber (Andrew Burns)
SG Cowen & Co. (Moshe Katri)
Salamon Smith Barney (Pat Burton)
Sound View Financial Group (Gary Helmig)
Standard & Poors (Brian Goodstadt)
Value Line (Ray Cowen)
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6. Investor Relations 3rd Quarter Fiscal 2000
SHAREHOLDER SERVICES Registrar and transfer agent-
q
ChaseMellon Shareholder Services
For more information regarding CSC:
P.O.Box 3315
q Shareholder services and literature
S. Hackensack, NJ 07660
request line-
USA
(800) 542-3070
www.chasemellon.com
q Facsimile service- (201) 329-8660
(800) 962-7328 (800) 526-0801
q Website- CSC Investor Relations -
q
http://www.csc.com Bill Lackey, Director, Investor Relations
q CSC Headquarters- (310) 615-1700
2100 East Grand Avenue Lisa Runge, Manager, Investor Relations
El Segundo, California 90245, USA (310) 615-1680
(310) 615-0311 Email:InvestorRelations@csc.com
Forward-Looking Statements
All statements in this document that do not directly and exclusively relate to historical facts constitute
โforward-looking statementsโ within the meaning of the Private Securities Litigation Reform Act of 1995. These
statements represent the Companyโs intentions, plans, expectations and beliefs, and are subject to risks,
uncertainties and other factors, many of which are outside the Companyโs control. These factors could cause
actual results to differ materially from such forward-looking statements. For a description of these factors, see the
section titled โForward-Looking Statementsโ in the Companyโs Quarterly Report on Form 10-Q for the fiscal
quarter ended December 31, 1999.
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Copyright ยฉ 2000 Computer Sciences Corporation. All rights reserved.
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![Investor Relations 3rd Quarter Fiscal 2000
Third Quarter Fiscal 2000 ( Ended December 31, 1999)
Earnings Summary
Research Coverage
Financial Highlights
CSC's Business EARNINGS SUMMARY
Computer Sciences Corporation โWe are pleased with this quarterโs excellent performance given the dramatic demand shifts for information
helps clients in industry and
technology services during the latter months of calendar 1999. The benefits from recent new business awards
government use information
and acquisitions and our focus on aggressive cost containment provided strong support for achieving our
technology to achieve strategic
financial results for the second half of calendar 1999. More specifically, we announced $3.5 billion in new
and operational objectives. With
54,000 employees in more than business awards during the third quarter. Including awards through January 2000, CSCโs year- to-date total is
700 offices worldwide, the $9.6 billion, compared with $5.1 billion, excluding the IRS award, for all of fiscal 1999.โ
company tailors solutions from a
broad suite of integrated service Van B. Honeycutt
offerings, including e-business
Chairman, President and Chief Executive Officer
strategies and technologies;
Computer Sciences Corporation
management and I/T consulting;
systems development and
Computer Sciences Corporation reported earnings per share, before special items, of 66 cents (diluted) for its fiscal
integration; application
software; and I/T and business 2000 third quarter, a 20% increase over the restated 55 cents for the same period last year. After special items,
process outsourcing. consisting principally of merger-related charges and other transaction costs, earnings per share were 48 cents on a
diluted basis. The special items total $41.1 million ($29.8 million after income taxes), or 18 cents per share
Since its formation in 1959, CSC
(diluted). All previous period results have been restated to reflect the November 16, 1999 merger with Nichols
has been known for its flexibility
in its relationships with clients. Research Corporation, accounted for as a pooling of interests.
Through numerous agreements
with hardware and software Revenues for the third quarter were up 14.9% (17.3% before the pooling of interests) to $2.4 billion compared with
technology firms, the company is the $2.1 billion for the prior-year period. Global commercial revenue rose 17.4%, while U.S. commercial revenue
able to identify and manage
grew 10.7%.
solutions specifically tailored to
each client's needs.
Nicholsโ revenue of $100 million for CSCโs fiscal 2000 third quarter ended December 1999 is compared to
Nicholsโ fiscal 1999 third quarter revenue of $127 million for its March to May period. As a result, a seasonally
CSC had revenues of $9.1 billion
for the 12 months ended lower quarter for Nichols is compared to its strongest quarter of the prior year.
December 31, 1999.
CSC continues to see a rapid acceleration in requests for integrated e-business solutions, and anticipates these
http://www.csc.com/invest/hilites03_00.html (1 of 6) [03/29/2001 9:35:08 PM]](https://image.slidesharecdn.com/1099202/85/computer-sciences-FY-2000-Q3-1-320.jpg)
![Investor Relations 3rd Quarter Fiscal 2000
activities for fiscal 2000 to grow three-fold over last year.
CSCโs third quarter revenue from the U.S. federal government accelerated strongly, growing 7% (13.6% before the
pooling of interests) to $543.8 million from last yearโs $508.2 million. The growth was fueled by a 14.9% increase
from CSCโs civil agency business while Department of Defense (DoD) related revenue increased 2.8%. (Before the
Nichols merger, the growth rates for the civil agency and DoD-related revenue were 16.1% and 12%, respectively.)
CSCโs federal market pipeline of opportunities over the next 27 months is approximately $30 billion, greater than it
has ever been for this period of time. Within the federal environment, modernization and commercial best practice
opportunities, including the transition of federal employees to the private sector, are likely to become an important
part of the governmentโs I/T strategy. CSC is positioned exceptionally well to capture a large share of this market.
CSCโs European revenue for the quarter was $654.3 million, up 7.5% over last yearโs $608.5 million, and was
impacted adversely by 2.5 percentage points due to currency fluctuation. Importantly, growth in other international
markets was a robust 113.6%, driven by last yearโs fourth-quarter acquisition of Singapore-based CSA Holdings
and solid gains from CSC Australia. These markets continue to show excellent demand for CSCโs broad range of
I/T services.
CSC's SERVICES ENCOMPASS THREE KEY AREAS:
MANAGEMENT AND INFORMATION TECHNOLOGY CONSULTING
Dramatically improve client organizations' operations. Often streamlines basic business processes.
SYSTEMS DEVELOPMENT, AND INTEGRATION
Design, develop and build information technology systems. Combine hardware, software and communications into more productive systems.
OPERATIONS SUPPORT AND INFORMATION SERVICES OUTSOURCING
Directly operate clients' information systems. CSC often acquires clients' systems and employees.
RECENT ENGAGEMENTS INCLUDE:
United Technologies Corp. (UTC) โ -- Under a master agreement with UTC, CSC has signed additional contracts with two units of UTC,
Hamilton Sundstrand and Pratt & Whitney Canada. For Hamilton Sundstrand, CSC will manage mainframes, servers, and the help desk, local
area networks and about 8,100 desktop units. For Pratt & Whitney Canada, CSC will manage applications, a central help desk, midrange
computers, network operations, 6,000 desktop units.
General Electric Company (GE) -- CSC signed an I/T outsourcing agreement with GE to manage the data processing operations, help desk
and disaster recovery services for GE and GE Capital in the UK and other European countries. In addition, CSC acquired the Australian
operations of GE Capital ITS, a leading supplier of commercial and government organizations.
Saturn -- - CSC led a team of companies chosen by General Motors' Saturn Corporation to build the auto industry's first customer-driven
web-based retail management system. Saturn is the first to bring together leaders in I/T, automotive systems and e-business software to build a
system that will make car buying simple and flexible for customers.
http://www.csc.com/invest/hilites03_00.html (2 of 6) [03/29/2001 9:35:08 PM]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)