UBS and NOAA contract wins boost CSC's QI earnings

But new business revenue down $300m

CSC's profit and revenue rose modestly

IT and outsourcing firm CSC has posted a 11 per cent rise in net income, and a 1.1 per cent rise in revenue. The company attributes this to significant wins with financial services firm UBS and the National Oceanic and Atmospheric Administration (NOAA).

CSC has posted first-quarter fiscal 2011 revenue of $3.94bn (£2.52bn) and net income of $148m (£94.5m), marking a 1.1 per cent rise in revenue and an 11.3 per cent rise in net income.

On the new business front, CSC admitted that bookings were down $300m year-on-year at $3.2bn.

“Continuing delays in the US government’s acquisitions process were the primary cause of the lower bookings number,” said Mike Laphen, chairman and CEO at CSC.

However, the firm was more upbeat about its wins with UBS and NOAA.

“UBS is now one of our largest outsourcing relationships in the banking and capital markets industry. Our North American Public Sector (NPS) business was also awarded a prestigious $317m high performance computing programme from NOAA,” said Laphen.

Both the North American Public Sector and Managed Services Sector lines of CSC’s business reported 2.2 per cent increases in revenue, drumming up sales of $1.2bn apiece. The firm’s Managed Services Sector business line, however, posted a decline of 2 per cent to $800m.

The firm has now adjusted its outlook for the 2011 fiscal year, and expects a total revenue in the range of $16.8bn to $17.2bn, with an operating margin between 9 per cent and 9.25 per cent.