Computer Sciences Posts Q1 Loss - Update

(RTTNews) - IT services provider Computer Sciences Corp (CSC), on Monday reported a loss for the first quarter compared to a loss last year, as higher revenues were offset by increase in operating costs.

Falls Church, Virginia-based CSC reported first-quarter loss of $21 million or $0.15 per share, compared to a profit of $163 million or $1.15 per share last year. Adjusted earnings from continuing operations improved to $0.53 per share from $0.47 per share last year.

CSC said its first-quarter revenues rose to $1.93 billion from $1.80 billion last year.

Analysts polled by Thomson Reuters estimated earnings of $0.45 per share on revenues of $1.91 billion for the quarter. Analysts' estimates typically exclude special items.

Total costs and expenses for the quarter rose to $1.97 billion from $1.73 billion last year. The company reported a restructuring cost of $57 million in the quarter.

CEO Mike Lawrie said, "Revenue was up 9% in constant currency driven by contributions from acquisitions as well as strong momentum within our next-generation offerings."

Lawrie also said that its merger with the Enterprise Services segment of Hewlett Packard Enterprise is progressing as planned, and expects to close the deal in late March 2017.

In May, Hewlett Packard Enterprise (HPE) announced its plans for a tax-free spin-off and merger of its Enterprise Services business with CSC.

CSC closed Monday's trading at $48.02, down $0.50 or 1.03%, on the NYSE. The stock gained $0.05 or 0.10% in after-hours trade.