Operating income grew 1.7% to $183m
IT consulting firm CSC has reported revenue of $3.96bn for the first quarter of fiscal 2013, a decline of 2% when compared with $4.03bn in the same period previous fiscal.
Diluted earnings per share (EPS) was $0.26, compared with diluted EPS of $1.17 in the first quarter of fiscal 2012, which included a one-time tax benefit of approximately $0.78 cents.
The company has posted a total operating income of $183m in the first quarter, a growth of 1.7% compared to $180m in the same quarter previous fiscal.
For the quarter ended 31 July 2012, operating margin was 4.6%, which is an increase of 16 basis points from the previous fiscal, while EBIT margin decreased by 37 basis points year-over-year to 2.9%, CSC said.
CSC president and CEO Mike Lawrie said the company’s Q1 performance reflects a first step in turning around CSC.
"We have launched several action plans which will transform the company over the next several years and create value for our shareholders," Lawrie said.
"As part of this transformation agenda, we are bringing a much needed focus to greater contract management discipline across the company.
"We are also simplifying our operating model to realize greater productivity and operational efficiency. We are attacking our cost structure and we expect to realize about $1 billion in cost improvement over the next 18 months."
Revenues from managed services sector and business solutions & services (BSS) increased by 1% and 2%, respectively, whereas revenues from North American Public Sector (NPS) declined by 8% in the latest quarter, compared with the corresponding quarter in 2011.