Computer Sciences Corporation (CSC), the fifth-largest US technology services seller, has posted quarterly revenue that missed Wall Street expectations, hit by a fall in US commercial-sector sales.
Its shares slipped 2% in extended trading yesterday, following the earnings report, after closing up 2.4% in regular-session trading on the New York Stock Exchange.
Net income in the company's fiscal fourth quarter, ended 30 March, increased to $249.7 million, or $1.42 per share, from $158.8 million, or 84c per share, a year earlier.
While revenue advanced to $4.05 billion, from $3.89 billion, it missed Wall Street's average estimate of $4.1 billion, as compiled by Reuters Estimates.
CSC said fourth-quarter revenue from US commercial accounts fell 3%, to $991.1 million.
Weakness in technology spending by large US businesses earlier this year also was reported by International Business Machines, network equipment maker Cisco Systems and data-storage company Network Appliance.
India expansion
CSC, which earns more than a third of its revenue from the US government and helps run Internal Revenue Service computers, said North American public-sector revenue rose 4.8%, to $1.43 billion, in the fourth quarter.
The company, based in California, in May had forecast fourth-quarter earnings per share before items of $1.51 to $1.61 and revenue of $4 billion to $4.1 billion.
CSC forecast first-quarter earnings of 65c to 75c per share before items and revenue of $3.7 billion to $3.8 billion.
For the fiscal year ending 28 March 2008, CSC forecast earnings per share of $4 to $4.20 before items such as expenses for restructuring and a retirement agreement. The company said it expects revenue growth of 6% to 7% from $14.9 billion in fiscal 2007.
The company ranks fifth by revenue among US-based technology services companies, behind IBM, Electronic Data Systems, Hewlett-Packard and Accenture.
CSC said it expects to double its staff in India to about 14 000 after completing the $1.3 billion acquisition of Covansys. It expects to pay about $40 million this fiscal year for a five-point programme to improve its business, including boosting its India operations.
The company's shares, up 5% this year, fell to $54.94, from a close of $56.03.
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