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Computer Sciences Corporation (CSC)

- NYSE
  • Mon, Feb. 23, 2:46 PM
    • Sources tell dealReporter Computer Sciences (CSC +6.5%) is in talks to sell itself in a 2-part deal: P-E firms would buy its North American public sector business, and a foreign "strategic buyer" would acquire its commercial IT services ops.
    • Shares have surged to new 52-week highs. Bloomberg reported in September CSC is exploring an LBO, and had contacted Blackstone, Bain, and other P-E firms.
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  • Sun, Jan. 18, 12:57 PM
    • TechCrunch reports Google (NASDAQ:GOOG) is interested in acquiring Softcard, the mobile payments platform launched by AT&T (NYSE:T), Verizon (NYSE:VZ), and T-Mobile (NYSE:TMUS) in 2010 - it was previously known as Isis, before changing its name for obvious reasons. Though Softcard's owners have invested hundreds of millions in the venture, sources state Google's purchase price could be below $100M.
    • Like Apple Pay and Google Wallet, Softcard relies on NFC radios to enable transactions. And like Wallet, it has struggled to get off the ground, as U.S. consumers overwhelmingly stick with card swipes. Hard data on Apple Pay usage remains limited for now.
    • Softcard recently laid off 60 employees. Meanwhile, it was reported in 2013 that Google had spent $300M on Wallet-related acquisitions, with little to show for it. The adoption of EMV (chip-and-PIN) readers by U.S. retailers could give NFC solutions a boost, by making card payments a little less convenient.
    • The WSJ reports Google is partnering with consulting giant PwC to bid on a $2B+ contract to update the DoD's electronic health records system. PwC says Google's tools could both improve the system's security and performance, and lower costs. A group featuring IBM, HP (NYSE:HPQ), and CSC has made a rival bid.
    • Ad tech firm Marin Software (NYSE:MRIN) provides some encouraging mobile search data ahead of Google's Jan. 29 Q4 report. A Marin study found mobile accounted for 49% of Q4 U.S. search ad spend, up from 42% in Q3, and that smartphone ad click rates were 38% higher than PC rates (thanks in part to accidental clicks?). On the other hand, mobile still only accounted for 32% of conversions.
    • Medium writer Backchannel provides a deep dive into Google Search's evolution in an  era where users increasingly want search engines to know the precise meaning of their queries. Part 1 looks at Google's efforts to optimize for mobile (aided by its Knowledge Graph and Google Now). Part 2 looks at Google's real-world research into the information needs of users. Part 3 looks at Google's investments in A.I./deep learning to deliver far more intelligent search results and spontaneously surface useful information.
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  • Sep. 29, 2014, 3:58 PM
    • Bloomberg reports Computer Sciences (CSC +5.9%) has contacted Blackstone, Bain, and other P-E firms about an LBO. Shares have spiked higher.
    • Talks are said to be at an early stage, with CEO Mike Lawrie reportedly trying to convince would-be suitors CSC's turnaround is half-finished. One source says P-E firms like the IT services firm's multiples, but have concerns about its cash flow and slower-growing units.
    • With a current market cap of $8.7B, CSC would be a big fish to swallow. But the company's low valuation (shares go for 0.7x FY14 sales) and fairly predictable revenue streams could boost P-E interest.
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  • Oct. 31, 2013, 1:27 PM
    • 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.
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  • Dec. 3, 2012, 8:08 AM
    Computer Sciences (CSC) agrees to sell its credit services unit to Equifax for $1B in cash. CSC plans to use about half of the $750M-$800M after-tax proceeds to repurchase shares, with most of the rest going towards pension plan contributions. Shares +0.7% premarket. (PR)
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  • Nov. 15, 2011, 12:55 PM
    Computer Sciences (CSC +6.3%) soars on a WSJ report of PE interest - including from firms such as Blackstone (BX) and TPG Capital. The IT services provider has long thought to be coveted by buyout firms, and recent share declines may make the company a compelling value.
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  • Sep. 14, 2011, 9:07 AM
    Computer Sciences (CSC) is acquiring AppLabs, an Indian firm it refers to as "the world's largest pure-play software testing and quality management service provider." CSC sees the move enhancing its testing capabilities, and notes an IDC estimate for 21% average annual growth for the independent testing and validation services market.
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Company Description
Computer Sciences Corp provides information technology (IT) and professional services and solutions. The Company's reportable segments are Global Business Services (GBS), Global Infrastructure Services (GIS), and North American Public Sector (NPS).