Steady progress at CSC

(By Anthony Miller – Thursday 21st May 2009 9:30am). The last of the US ‘majors’ to report its quarterly (and in this case, FY) results, CSC seemed to show steady progress. For the quarter ended 3rd April 2009, CSC’s revenues inched up 0.4% yoy in constant currency terms to $4.1b, bring the year’s total to $16.7b, up 4% ccy. Q4 operating margins rose 90 bps yoy to 10.9%, which contributed to the 27 bps improvement in FY margins, to 8.25%. CEO Mike Laphen expects FY10 revenues to fall about 3% below FY09, but is looking for another 25-50 bps margin expansion.

It’s interesting to do the ‘compare and contrast’ with HP’s results the other day (see HP – The Services Company). Again, we have to look at sequential growth in order to account for EDS, but you will recall that HP’s services revenues declined (as reported) qoq by 3% to $8.5b, but delivered 14% margins. CSC’s revenues grew 4% qoq (as reported). All of HP’s service lines showed qoq revenue decline, whereas all of CSC’s were no worse than flat, as was the case for its Global Outsourcing Services, now $1.5b, about 36% of the total. Indeed, CSC’s Business Solutions & Services revenues grew 12% qoq to $1.14b, mostly in consulting.

Unlike every other major player, CSC shows a complete disregard for regional reporting so I’m afraid you’ll have to wait a bit before we can bring you the local story.