CSC Q4 Profit Tops Estimate; To Split Into Two

(RTTNews) - Computer Sciences Corp. (CSC) reported net income for the fourth quarter of $9 million or $0.06 per share, compared to $270 million or $1.81 per share for the year-ago quarter.

Earnings from continuing operations for the fourth quarter was $0.06 per share, compared to $1.83 per share in the prior year quarter.

Excluding items, adjusted earnings from continuing operations for the fourth quarter was $1.26 per share, compared to $1.15 per share in fourth quarter of the previous year.

Revenue for the fourth quarter fell 12.6% to $2.91 billion from $3.33 billion in the same quarter last year.

Analysts polled by Thomson Reuters expected the company to earn $1.20 per share on revenue of $2.96 billion for the fourth quarter. Analysts' estimates typically exclude special items.

Separately, Computer Sciences said that its Board of Directors has approved a plan to separate the company into two publicly traded, pure-play leaders: one to serve commercial and government clients globally and one to serve public sector clients in the U.S.

CSC - Global Commercial will move forward as the information technology services and solutions partner for Fortune 1,000 companies and non-U.S. government clients, leveraging its industry, infrastructure and consulting expertise to lead customers on their digital transformation journey. With $8.1 billion in FY 15 revenue, CSC Global Commercial will have more than 1,000 customers, including 175 of the Fortune 500, 51,000 employees and 34 delivery centers globally.

CSC - U.S. Public Sector will be a top three provider of mission-specific IT, infrastructure and business services to U.S. federal, state and defense agencies. The public sector business had FY 15 revenues of $4.1 billion and employs 14,000 people, including 3,500 U.S. military veterans.

Concurrent with the separation, CSC plans to pay a special cash dividend to shareholders of $10.50 per share at closing, which is expected by October 2015.