Outsourcing giant Computer Sciences Corp reported solid growth in profitability and revenue in its first fiscal quarter.
In the three months ending July 2, 2004, the El Segundo, California-based company grew net profit 19.6% to $110.4m on revenue that rose 5.1% to $3.74bn. CSC pointed out that this year’s quarter (a 13-week period) had one week less than last year’s comparable quarter (a 14-week period).
The US government remained CSC’s largest client, with federal sales increasing 5% to $1.58bn, representing 42% of total revenue. Within this figure sales to the Department of Defense grew 3.5% to $929.7m.
In contrast, sales to commercial sector clients in the US fell 2.8% to $911.6m, although the company continued its strong run in Europe, where revenue rose 14.8% to $940.1m. Total contract signings during the quarter reached $4.9bn.
Chairman and CEO Van Honeycutt said that during the next 20 months, the company had a federal pipeline of around $33bn, with $19bn of that total to be awarded in the company’s current financial year ending March 2005.
Honeycutt added that the company remained on target to achieve revenue growth of between 8% to 10% in its current financial year, which would take sales to between $16bn to $16.25bn.