CSC slumps post-earnings, cloud management provider acquired


With shares having doubled from their Sep. '12 lows, Computer Sciences (CSC -5.8%) is selling off after posting mixed FQ2 results and reiterating guidance for FY14 EPS from continuing ops of $3.50-$3.70 (consensus is at $3.67).

CSC has also announced it's buying ServiceMesh, a provider of enterprise cloud management services, for $158M. CSC notes ServiceMesh's platform allows companies to manage apps across multiple clouds (useful as companies adopt a mixture of public, private, and hybrid clouds), and to set governance, access, and performance policies for them.

On its CC (transcript), CSC mentioned its commercial book-to-bill was 1.0, up from 0.9 in FQ1 and a normalized 0.6 a year ago. In addition, global business services B2B rose to 1.2 from 1.1 in FQ1 and 0.8 a year ago. But global infrastructure bookings remain soft: B2B was 0.7, flat Q/Q and up from a very depressed 0.3 a year ago.

Business services revenue fell 12.8% Y/Y to $1.05B, infrastructure services 3.6% to $1.12B, and North American public sector 11.6% to $1.05B. Two bright spots: cybersecurity revenue rose 27% exc. forex, and cloud revenue rose 29%.

FQ2 free cash flow was $86M, below net income of $209M and down from $105M in the year-ago period.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs