CSC Reports Continuing Operating Improvement and Strong Profitability in Fourth Quarter and Fiscal Year 2013

  CSC Reports Continuing Operating Improvement and Strong Profitability in
  Fourth Quarter and Fiscal Year 2013

  Diluted EPS from Continuing Operations of $1.57 for the Fourth Quarter and
                                $3.20 for 2013

 Q4 Operating Income of $212 Million Including Restructuring and $365 Million
                           Excluding Restructuring

Full Year Operating Income of $900 Million Including Restructuring and $1,162
                       Million Excluding Restructuring

    Q4 Operating Margin of 5.7% Including Restructuring and 9.9% Excluding
                                Restructuring

Full Year Operating Margin of 6.0% Including Restructuring and 7.8% Excluding
                                Restructuring

 Free Cash Flow* of $307 Million for the Fourth Quarter and $764 Million for
                                     2013

 Revenue of $3.70 Billion for the Fourth Quarter and $14.99 Billion for 2013

EPS from Continuing Operations Target Raised to $3.30 - $3.50 for Fiscal Year
                                     2014

Business Wire

FALLS CHURCH, Va. -- May 15, 2013

CSC (NYSE: CSC) today reported fourth quarter 2013 diluted earnings per share
of $1.81 consisting of $1.57 from continuing operations and $0.24 from
discontinued operations. This compares with a diluted loss per share from
continuing operations of ($1.20) in the fourth quarter 2012. Total revenues
for the quarter were $3.70 billion and compares with $3.99 billion in the year
ago period.

For fiscal year 2013, diluted earnings per share were $6.18 consisting of
$3.20 from continuing operations and $2.98 from discontinued operations. This
compares with a diluted loss per share from continuing operations of ($28.31)
in fiscal 2012. Total revenues were $14.99 billion and compares with $15.36
billion in the year ago period.

“During fiscal 2013, CSC delivered on its commitments and made significant
strides in transforming our company. We returned to profitability and exceeded
our targets for cost takeout, operating margin expansion, EPS and free cash
flow growth. We are making significant investments in our business –
employees, offerings, systems, and partnerships - designed to enhance our
competitive position and long-term earnings growth. And we returned $428
million to shareholders through share repurchases and dividends,” said Mike
Lawrie, president and CEO. “For fiscal year 2014, our plans include continued
cost takeout, investing in our people, expanding market coverage, pursuing
delivery excellence and driving innovation with our clients.”

* Excludes discretionary pension contribution of $500 million.

Financial Highlights

  *Diluted EPS of $1.81 for the fourth quarter and $6.18 for the fiscal year
    2013 compares with losses in the prior year.
  *Non-GAAP diluted EPS from continuing operations of $1.27 for the fourth
    quarter excludes certain items: a tax planning benefit of $1.02 per share,
    a gain on the sale of an Australian IT staffing business of $0.24 per
    share, settlement of a shareholder securities class action lawsuit of
    ($0.24) per share, and restructuring charges of ($0.72) per share. For
    fiscal year 2013, non-GAAP diluted EPS from continuing operations
    excluding these certain items was $2.90.
  *Income from continuing operations before taxes of $110 million for the
    quarter and $480 million for fiscal year 2013 compares with a loss in both
    prior periods.
  *Pre-tax margin of 3.0% for the quarter and 3.2% for fiscal year 2013
    improved 760 bps and 3,220 bps when compared with the prior year.
  *Operating income of $212 million for the quarter and $900 million for the
    year are significant improvements when compared with operating losses in
    the year ago periods. Excluding restructuring charges of $153 million for
    the fourth quarter and $262 million for the year, operating income was
    $365 million and $1,162 million respectively.
  *Operating margin of 5.7% for the quarter and 6.0% for fiscal year 2013.
    Excluding restructuring charges, operating margin was 9.9% for the fourth
    quarter and 7.8% for the fiscal year.
  *Operating cash flow of $41 million in the quarter declined from $496
    million in the prior year primarily due to CSC’s previously announced
    decision to make a $500 million discretionary contribution to its pension
    plans. For fiscal 2013, operating cash flow was $1,119 million as reported
    and $1,619 million excluding the discretionary pension contributions.
  *Excluding discretionary pension contributions of $500 million, free cash
    flow was $307 million for the fourth quarter and was $764 million for
    2013. Fiscal 2013 free cash flow compares favorably with $59 million from
    fiscal 2012.
  *Ending cash and cash equivalents were $2.05 billion, an increase of $961
    million from March 30, 2012.

Managed Services Sector (MSS)

For the fourth quarter, MSS revenue of $1.63 billion decreased 4%, as
reported, and in constant currency, when compared with the fourth quarter of
2012. Segment operating margin was 3.4% compared with a (8.4%) margin in the
prior year and includes restructuring charges of $122 million which were
partially offset by better contract performance and cost takeout. MSS signed
$1.1 billion of new business during the quarter.

For fiscal 2013, MSS revenue of $6.46 billion decreased by 2%, as reported,
and was unchanged in constant currency, when compared with the prior year.
Segment operating margin was 5.6% improved by 530 bps when compared with
fiscal 2012 due to better contract performance and cost takeout, partially
offset by restructuring charges of $190 million. New business awards for MSS
were $6.9 billion during fiscal 2013.

Business Solutions & Services (BSS)

Fourth quarter BSS revenue of $0.80 billion decreased by 12%, as reported, and
in constant currency primarily due to the sale of an Australian IT staffing
business. BSS operating margin of 9.9% compares with a (1.9%) margin in the
prior year. Operating margin improved primarily as the result of cost takeout
and included a restructuring charge of $7 million. New business awards for BSS
were $1.0 billion during the quarter.

For fiscal 2013, BSS revenue of $3.27 billion increased by 3%, as reported,
and increased by 6% in constant currency, when compared with the prior year.
Operating margin of 4.2% compares favorably with an operating loss in the
prior year due to progress on cost takeout partially offset by workforce
restructuring charges of $39 million. BSS signed $3.4 billion of new business
during fiscal 2013, excluding divested businesses.

Subsequent to the fourth quarter of 2013, CSC reached an agreement to divest a
flood insurance business process outsourcing business for $46 million in cash.
This business contributed approximately $44 million of revenue and four cents
of diluted EPS from continuing operations in fiscal 2013. These results will
be recast as discontinued operations in future periods.

North American Public Sector (NPS)

Fourth quarter NPS revenue of $1.31 billion declined by 7% from the fourth
quarter of 2012 primarily due to contracts which were winding down and the
slow pace of new business awards. Operating margin of 10.0% increased by 420
bps when compared with the prior year and included better cost takeout and
contract management partially offset by restructuring costs of $10 million.
NPS awards of $0.8 billion declined from one year ago primarily due to delays
in government procurement.

For fiscal 2013, NPS revenue of $5.39 billion decreased by 6% when compared
with the prior year. Operating margin increased by 730 basis points to 9.6%
due to better contract management and cost takeout partially offset by
workforce restructuring charges of $13 million. NPS signed $3.5 billion of new
business during fiscal 2013.

Returning Cash to Shareholders

During the fourth quarter, CSC returned $258 million to shareholders
consisting of $30 million in common stock dividends and $228 million of share
repurchases. CSC repurchased 4.7 million shares during the quarter at an
average price of $48.15.

For the fiscal year 2013, CSC returned $428 million to shareholders in the
form of $123 million in common stock dividends and $305 million of share
repurchases. During the year, CSC repurchased 6.7 million shares at an average
price of $45.47.

CSC ended fiscal year 2013 with 150,164,762 shares outstanding on March 29,
2013.

Conference Call and Webcast

CSC senior management will host a conference call and webcast at 11:00 a.m.
EDT today. The dial-in number for domestic callers is 888-395-3230. Callers
who reside outside the United States or Canada should dial 719-325-2282. The
passcode for all participants is 2733188. The webcast audio and presentation
slides will be available at www.csc.com/investorrelations.

A replay of the conference call will be available from approximately three
hours after the conclusion of the call until May 21, 2013. The replay dial-in
number is 888-203-1112 for domestic callers and 719-457-0820 for callers who
reside outside of the U.S. and Canada. The replay passcode is also 2733188. A
replay of this webcast will also be available on CSC’s website.

Non-GAAP Measures

In an effort to provide investors with additional information regarding the
company’s preliminary results as determined by generally accepted accounting
principles (GAAP), the company has also disclosed in this press release
preliminary non-GAAP financial information which management believes provides
useful information to investors, including operating income, operating margin,
earnings before interest and taxes (EBIT), EBIT margin, and free cash flow.
Reconciliations of the preliminary non-GAAP measures to the respective and
most directly comparable GAAP measures, as well as the rationale for
management’s use of non-GAAP measures, is included below.

About CSC

For more information, please visit CSC’s company profile.

All statements in this press release and in all future press releases that do
not directly and exclusively relate to historical facts constitute
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent the company’s
intentions, plans, expectations and beliefs, and are subject to risks,
uncertainties and other factors, many of which are outside the company’s
control. These factors could cause actual results to differ materially from
such forward-looking statements. For a written description of these factors,
see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year
ended March 30, 2012 and any updating information in subsequent SEC filings.
The company disclaims any intention or obligation to update these
forward-looking statements whether as a result of subsequent events or
otherwise, except as required by law.

Business Segment Revenues, Operating Income and Operating Margins
(preliminary and unaudited)

Quarterly revenues and operating income of the MSS and BSS segments has been
recast to reflect the impact of CSC's fiscal 2013 divestitures: U.S. credit
services business, Italian consulting and system integration business and
enterprise system integration business in Malaysia and Singapore.

                
Revenues by        Quarter Ended
Segment
                                                              % Change
                                                                    in
                                                                    Constant
(Amounts in        March 29,         March 30,         % Change     Currency
millions)          2013              2012
North American     $  1,308          $  1,404          (6.8  )%     (6.8   )%
Public Sector
Managed
Services           1,632             1,705             (4.3  )      (4.0   )
Sector
Business
Solutions &        796               908               (12.3 )      (11.8  )
Services
Corporate &        (39        )    (31        )      -            -
Eliminations
Total Revenue      $  3,697       $  3,986         (7.3  )%     (7.0   )%
                                                                    
                                                                    
                   Twelve Months Ended
                                                                    % Change
                                                                    in
                                                                    Constant
(Amounts in        March 29,         March 30,         % Change     Currency
millions)          2013              2012
North American     $  5,391          $  5,703          (5.5  )%     (5.5   )%
Public Sector
Managed
Services           6,457             6,602             (2.2  )      (0.3   )
Sector
Business
Solutions &        3,272             3,180             2.9          5.5
Services
Corporate &        (127       )    (121       )      -            -
Eliminations
Total Revenue      $  14,993      $  15,364        (2.4  )%     (1.1   )%
                                                                           

                       
Operating Income and
Operating
Margins by Segment        Quarter Ended
                          March 29, 2013            March 30, 2012
                          Operating   Operating     Operating    Operating
(Amounts in millions)     Income        Margin        Income         Margin
North American Public     $  131        10.0   %      $ 81           5.8    %
Sector
Managed Services          55            3.4    %      (144     )     (8.4   )%
Sector
Business Solutions &      79            9.9    %      (17      )     (1.9   )%
Services
Corporate &               (53     )     -             (18      )     -
Eliminations
Total Operating           $  212       5.7    %      $ (98    )     (2.5   )%
Income
                          
                          
                          Twelve Months Ended
                          March 29, 2013              March 30, 2012
                          Operating     Operating     Operating      Operating
(Amounts in millions)     Income        Margin        Income         Margin
North American Public     $  519        9.6    %      $ 132          2.3    %
Sector
Managed Services          361           5.6    %      17             0.3    %
Sector
Business Solutions &      136           4.2    %      (1,443   )     (45.4  )%
Services
Corporate &               (116    )     -             (65      )     -
Eliminations
Total Operating           $  900       6.0    %      $ (1,359 )     (8.8   )%
Income
                                                                            

                                                
Consolidated Statements of Operations
(preliminary and unaudited)
                                                     
                   Quarter Ended                  Twelve Months Ended
(Amounts in
millions,           March 29,        March 30,       March 29,      March 30,
except            2013           2012          2013         2012
per-share
amounts)
                                                               
Revenues           $  3,697        $  3,986       $ 14,993      $ 15,364 
                                                                    
Costs of
services
(excludes
depreciation
and
amortization,
specified
contract
charge,
settlement
charge and
restructuring       2,836            3,425           11,851         13,019
costs of $137
and $238 for
the fourth
quarter and
twelve months
of fiscal 2013
and $137 for
the fourth
quarter and
twelve months
of fiscal 2012)
Cost of
services –
specified
contract charge
(excludes           —                —               —              1,281
amount charged
to revenue of
$204 (fiscal
2012))
Cost of
services –
settlement
charge
(excludes           —                —               —              227
amount charged
to revenue of
$42 fiscal
2012))
Selling,
general and
administrative
(excludes
restructuring
costs of $16
and $26 for the
fourth quarter      331              291             1,195          1,128
and twelve
months of
fiscal 2013,
and $3 for the
fourth quarter
and twelve
months of
fiscal 2012)
Depreciation
and                 272              281             1,076          1,147
amortization
Restructuring       153              140             264            140
costs
Goodwill            —                —               —              2,745
impairment
Interest            36               46              183            175
expense
Interest income     (8        )      (6        )     (22      )     (38      )
Other income,      (33       )      (7        )     (34      )     (6       )
net
Total costs and    3,587           4,170          14,513        19,818   
expenses
                                                                    
Income (loss)
from continuing     110              (184      )     480            (4,454   )
operations
before taxes
Taxes on income    (139      )      (3        )     (35      )     (84      )
Income (loss)
from continuing     249              (181      )     515            (4,370   )
operations
Income from
discontinued       37              28             464           145      
operations, net
of taxes
Net income          286              (153      )     979            (4,225   )
(loss)
Less: Net
income
attributable to    5               5              18            17       
noncontrolling
interest, net
of tax
Net income
(loss)
attributable to    $  281          $  (158   )     $ 961         $ (4,242 )
CSC common
stockholders
                                                                    
Earnings (loss)
per common
share:
Basic:
Continuing          $  1.60          $  (1.20  )     $ 3.22         $ (28.31 )
operations
Discontinued       0.24            0.18           3.00          0.94     
operations
                   $  1.84         $  (1.02  )     $ 6.22        $ (27.37 )
Diluted:
Continuing          $  1.57          $  (1.20  )     $ 3.20         $ (28.31 )
operations
Discontinued       0.24            0.18           2.98          0.94     
operations
                   $  1.81         $  (1.02  )     $ 6.18        $ (27.37 )
                                                                    
Cash dividend
per common          $  0.20          $  0.20         $ 0.80         $ 0.80
share
Weighted
average common
shares
outstanding
for:
Basic EPS           152.638          155.098         154.590        155.012
Diluted             155.136          155.098         155.557        155.012
                                                                             

                                                           
Selected Balance Sheet Data
(preliminary and unaudited)
                                                                
(Amounts in millions)                      March 29, 2013   March 30, 2012
                                                                
Assets
Cash and cash equivalents                    $   2,054          $   1,093
Receivables, net                             3,199              3,257
Prepaid expenses and other current           420               533         
assets
Total current assets                         5,673             4,883       
                                                                
Property and equipment, net                  2,184              2,441
Outsourcing contract costs, net              505                562
Software, net                                611                649
Goodwill                                     1,516              1,752
Other assets                                 762               902         
Total Assets                                 $   11,251        $   11,189  
                                                                
Liabilities
Short-term debt and current maturities       $   234            $   1,254
of long-term debt
Accounts payable                             373                478
Accrued payroll and related costs            653                789
Accrued expenses and other current           1,425              1,339
liabilities
Deferred revenue and advance contract        630                619
payments
Income taxes payable and deferred income     34                57          
taxes
Total current liabilities                    3,349             4,536       
                                                                
Long-term debt, net of current               2,498              1,486
maturities
Income tax liabilities and deferred          501                357
income taxes
Other long-term liabilities                  1,743              1,976
                                                                
Total Equity                                 3,160              2,834
                                                               
Total Liabilities and Equity                 $   11,251        $   11,189  
                                                                
Debt as a percentage of total                46.4        %      49.2        %
capitalization
                                                                            


Consolidated Statements of Cash Flows
(preliminary and unaudited)
                                          
                                             Twelve Months Ended
(Amounts in millions)                        March 29, 2013   March 30, 2012
Cash flows from operating activities:
Net income (loss)                            $   979            $   (4,225  )
Adjustments to reconcile net income
(loss) to net cash provided by operating
activities:
Depreciation and amortization                1,134              1,212
Goodwill impairment                          —                  2,745
Specified contract charge                    —                  1,485
Settlement charge                            —                  269
Stock based compensation                     49                 36
Deferred taxes                               101                (117        )
(Gain) loss on dispositions                  (797        )      30
Provision for losses on accounts             18                 18
receivable
Excess tax benefit from stock based          (3          )      (2          )
compensation
Unrealized foreign currency exchange         (37         )      (8          )
gain
Impairment losses and contract               9                  156
write-offs
Cash surrender value in excess of            (10         )      (7          )
premiums paid
Changes in assets and liabilities, net
of effects of acquisitions and
dispositions:
Decrease in receivables                      55                 232
Decrease (increase) in prepaid expenses      22                 (210        )
and other current assets
Decrease in accounts payable and accrued     (690        )      (67         )
expenses
Increase (Decrease) in income taxes          50                 (136        )
payable and income tax liability
Increase (Decrease) in advances contract     270                (247        )
payments and deferred revenue
Other operating activities, net              (31         )      12          
Net cash provided by operating               1,119             1,176       
activities
                                                                
Cash flows from investing activities:
Purchases of property and equipment          (395        )      (569        )
Outsourcing contracts                        (115        )      (179        )
Acquisitions, net of cash acquired           (34         )      (374        )
Business dispositions                        1,108              2
Software purchased and developed             (162        )      (227        )
Proceeds from sale of property and           32                 11
equipment
Other investing activities, net              22                28          
Net cash provided by (used in) investing     456               (1,308      )
activities
                                                                
Cash flows from financing activities:
Borrowings under lines of credit             128                140
Repayment of borrowings under lines of       (169        )      (120        )
credit
Borrowing on long-term debt                  1,077              —
Principal payments on long-term debt         (1,238      )      (485        )
Proceeds from stock options and other        55                 15
common stock transactions
Excess tax benefit from stock based          3                  2
compensation
Repurchase of common stock and               (283        )      —
acquisition of treasury stock
Dividend payments                            (124        )      (124        )
Other financing activities, net              (38         )      (9          )
Net cash used in financing activities        (589        )      (581        )
Effect of exchange rate changes on cash      (25         )      (31         )
and cash equivalents
Net increase (decrease) in cash and cash     961                (744        )
equivalents
Cash and cash equivalents at beginning       1,093             1,837       
of year
Cash and cash equivalents at end of year     $   2,054         $   1,093   
                                                                            

Non-GAAP Financial Measures

The following tables reconcile operating income, earnings before interest and
taxes (EBIT) and free cash flow to the most directly comparable financial
measure calculated and presented in accordance with GAAP. CSC management
believes that these non-GAAP financial measures provide useful information to
investors regarding the company's financial condition and results of
operations as they provide another measure of the company's profitability and
ability to service its debt, and are considered important measures by
financial analysts covering CSC and its peers.

Management uses operating income to evaluate business unit financial
performance and it is one of the measures used in assessing management
performance. One of the limitations associated with the use of operating
income (as compared to reported earnings) is that it does not reflect the
complete financial results of the company. CSC compensates for these
limitations by providing reconciliation between operating income and income
before taxes. Management uses free cash flow as one of the factors in
reviewing the overall performance of the business. Management compensates for
the limitations of this non-GAAP measure by also reviewing the GAAP measures
of operating, investing and financing cash flows as well as debt levels
measured by the debt-to-total capitalization ratio.

GAAP Reconciliations

Operating Income
CSC defines operating income as revenue less costs of services, depreciation
and amortization expense, restructuring costs and segment general and
administrative (G&A) expense, excluding corporate G&A. Operating margin is
defined as operating income as a percentage of revenue. Pre-tax margin is
defined as income (loss) from continuing operations before taxes as a
percentage of revenue. A reconciliation of consolidated operating income to
income from continuing operations before taxes is as follows:

                                              
Operating
Income (Loss)
(preliminary       Quarter Ended                   Twelve Months Ended
and unaudited)
                                                             
(Amounts in        March 29,      March 30,        March 29,      March 30,
millions)          2013           2012             2013           2012
                                                                  
Operating          $  212         $  (98   )       $  900         $  (1,359 )
income (loss)
Corporate G&A      (107    )      (53      )       (293    )      (219      )
Interest           (36     )      (46      )       (183    )      (175      )
expense
Interest           8              6                22             38
income
Goodwill           —              —                —              (2,745    )
impairment
Other income,      33            7               34            6         
net
Income (loss)
from
continuing         $  110        $  (184  )       $  480        $  (4,454 )
operations
before taxes
                                                                  
Operating          5.7     %      (2.5     )%      6.0     %      (8.8      )%
margin
Pre-tax margin     3.0     %      (4.6     )%      3.2     %      (29.0     )%
                                                                            

Earnings Before Interest and Taxes
CSC defines EBIT as revenue less costs of services, selling, general and
administrative expenses, depreciation and amortization, restructuring costs,
goodwill impairment, and other income (expense). EBIT margin is defined as
EBIT as a percentage of revenue. A reconciliation of EBIT to net income is as
follows:

                                              
Earnings
Before
Interest and
Taxes
(preliminary       Quarter Ended                   Twelve Months Ended
and unaudited)
                                                             
(Amounts in        March 29,      March 30,        March 29,     March 30,
millions)          2013           2012             2013           2012
Earnings
before             $  138         $  (144  )       $  641         $  (4,317 )
interest and
taxes
Interest           (36     )      (46      )       (183    )      (175      )
expense
Interest           8              6                22             38
income
Income taxes       139           3               35            84        
Net income
(loss) from        $  249        $  (181  )       $  515        $  (4,370 )
continuing
operations
EBIT margin        3.7     %      (3.6     )%      4.3     %      (28.1     )%
                                                                            

Free Cash Flow
CSC defines free cash flow as equal to the sum of (1) operating cash flows,
(2) investing cash flows, excluding business acquisitions, dispositions and
investments (including short-term investments and purchase or sale of
available for sale securities), and (3) payments on capital leases and other
long-term asset financings. A reconciliation of free cash flow to net cash
provided by (used in) operating activities is as follows:

                                              
Free Cash Flow
(preliminary       Quarter Ended                   Twelve Months Ended
and unaudited)
                                                               
(Amounts in        March 29,       March 30,       March 29,        March 30,
millions)          2013            2012            2013             2012
                                                                    
Free cash flow     $  (193  )      $  231          $  264           $ 59
Net cash used
in (provided       18              220             (456      )      1,308
by) investing
activities
Acquisitions,
net of cash        —               (6       )      (34       )      (374     )
acquired
Business           150             2               1,108            2
dispositions
Short-term         —               1               —                4
investments
Payment on
capital leases
and other          66             48             237             177      
long-term
asset
financings
Net cash
provided by        $  41          $  496         $  1,119        $ 1,176  
operating
activities
Net cash (used
in) provided       $  (18   )      $  (220  )      $  456          $ (1,308 )
by investing
activities
Net cash used
in financing       $  (156  )      $  (110  )      $  (589   )      $ (581   )
activities
                                                                             

Adjusted Operating Income and Adjusted Operating Margin

Adjusted operating income (Non-GAAP) is computed by excluding the impact of
the fourth quarter restructuring costs from operating income. Reconciliation
of adjusted operating income to operating income for the quarter ended March
29, 2013 is as follows:

                                                  
Adjusted Operating
Income
(preliminary and       Quarter Ended March 29, 2013
unaudited)
                                                     Adjusted    Adjusted
                       Operating     Restructuring     Operating     Operating
(Amounts in            Income        Costs             Income        Margin
millions)
North American         $  131        $     10          $ 141         10.8   %
Public Sector
Managed Services          55               122           177         10.8   %
Sector
Business Solutions        79              7             86          10.8   %
& Services
Corporate &              (53  )          14           (39   )   
Eliminations
Total                  $  212       $     153         $ 365      9.9    %
                       
                       
Adjusted Operating
Income
(preliminary and       Twelve Months Ended March 29, 2013
unaudited)
                                                       Adjusted      Adjusted
                       Operating     Restructuring     Operating     Operating
(Amounts in            Income        Costs*            Income        Margin
millions)
North American         $  519        $     13          $ 532         9.9    %
Public Sector
Managed Services          361              190           551         8.5    %
Sector
Business Solutions        136             39            175         5.3    %
& Services
Corporate &              (116 )          20           (96   )   
Eliminations
Total                  $  900       $     262         $ 1,162    7.8    %
                                                                            

* Total restructuring expense was $264 million of which $262 million was
included in operating expenses and $2 million in Corporate G&A)

Non-GAAP Diluted EPS from Continuing Operations

The tables below set forth the impact of certain fourth quarter fiscal 2013
items on diluted EPS from continuing operations. These items were not included
in the company's targets publicly disclosed on February 5, 2013, and include:

  *Gain on divestiture - This item represents the gain on the sale of Paxus,
    CSC's Australian IT Staffing unit. The divestiture did not qualify to be
    presented as discontinued operations due to CSC's continuing business
    relationship with the divested entity.
  *Restructuring costs - Incremental restructuring related costs incurred
    during the fourth quarter.
  *Settlement of Securities Class Action lawsuit - This item represents the
    fourth quarter charge resulting from the settlement of claims in re
    Computer Sciences Corporation Securities Litigation pending in the United
    States District Court for the Eastern District of Virginia, net of
    insurance recovery.
  *Tax benefit - This item represents an adjustment to normalize income from
    continuing operations based on a targeted tax rate of 28% for fiscal 2013.

              
                 Quarter Ended March 29, 2013
(Preliminary
and                          Certain Fourth Quarter Items                               
unaudited)
(Amounts in      Actual                                          Settlement                  Non-GAAP
millions,        Results                                         of                          Results
except                         Gain on       Restructuring   Securities   Tax
per-share                      Divestiture     Costs             Class          Benefit
amounts)                                                         Action
                                                                 lawsuit
Income from
continuing       $ 110         $  38           $   (156   )      $  (53   )     $ —          $ 281
operations
before taxes
Effective        (126.4 )%     —        %      28.0       %      28.0     %     —      %     28.0   %
tax rate
Taxes on         (139   )      —               (44        )      (15      )     (158   )     78
income
Income from
continuing       249           38              (112       )      (38      )     158          203
operations
Diluted EPS
from             $ 1.57       $  0.24        $   (0.72  )      $  (0.24 )     $ 1.02      $ 1.27 
continuing
operations *
                                                                                                    

* Computation of Diluted EPS requires adjustment for non-controlling interests

              
                 Twelve Months Ended March 29, 2013
(Preliminary
and                          Certain Fourth Quarter Items                               
unaudited)
(Amounts in      Actual                                          Settlement                  Non-GAAP
millions,        Results                                         of                          Results
except                         Gain on       Restructuring   Securities   Tax
per-share                      Divestiture     Costs             Class          Benefit
amounts)                                                         Action
                                                                 lawsuit
Income from
continuing       $ 480         $  38           $   (156   )      $  (53   )     $ —          $ 651
operations
before taxes
Effective        (7.3   )%     —        %      28.0       %      28.0     %     —      %     28.0   %
tax rate
Taxes on         (35    )      —               (44        )      (15      )     (158   )     182
income
Income from
continuing       515           38              (112       )      (38      )     158          469
operations
Diluted EPS
from             $ 3.20       $  0.24        $   (0.72  )      $  (0.24 )     $ 1.02      $ 2.90 
continuing
operations *
                                                                                                    

* Computation of Diluted EPS requires adjustment for non-controlling interest

Fiscal 2012 and Fiscal 2013 Quarterly Revenues by Segment
(preliminary and unaudited)

Quarterly revenues of the MSS and BSS segments has been recast to reflect the
impact of CSC's fiscal 2013 divestitures: U.S. credit services business,
Italian consulting and system integration business and enterprise system
integration business in Malaysia and Singapore.

                                                                    
Fiscal 2013
Revenues by      Quarter Ended
Segment
                 June 29,    September   December    March 29,
                               28,           28,
(Amounts in      2012          2012          2012          2013          Total
millions)
North
American         $ 1,368       $ 1,375       $ 1,340       $ 1,308       $ 5,391
Public
Sector
Managed
Services           1,630         1,581         1,614       1,632         6,457
Sector
Business
Solutions &        862           800           814         796           3,272
Services
Corporate
and               (31   )      (25   )      (32   )     (39     )     (127     )
Eliminations
Total            $ 3,829      $ 3,731      $ 3,736      $ 3,697      $ 14,993 
Revenues
                                                                       
                                                                       
Fiscal 2012
Revenues by      Quarter Ended
Segment
                 July 1,       September     December      March 30,
                               30,           30,
(Amounts in      2011          2011          2011          2012          Total
millions)
North
American         $ 1,484       $ 1,436       $ 1,379       $ 1,404       $ 5,703
Public
Sector
Managed
Services           1,618         1,614         1,665       1,705         6,602
Sector
Business
Solutions &        820           825           627         908           3,180
Services
Corporate
and               (31   )      (34   )      (25   )     $ (31   )     $ (121   )
Eliminations
Total            $ 3,891      $ 3,841      $ 3,646      $ 3,986      $ 15,364 
Revenues
                                                                           

Fiscal 2012 and 2013 Quarterly Operating Income by Segment
(preliminary and unaudited)

Quarterly operating income of the MSS and BSS segments has been recast to
reflect the impact of CSC's fiscal 2013 divestitures: U.S. credit services
business, Italian consulting and system integration business and enterprise
system integration business in Malaysia and Singapore.

                                                            
Fiscal 2013
Operating        Quarter Ended
Income by
Segment
                 June        September     December       March
                 29,         28,           28,            29,
(Amounts in      2012        2012          2012           2013         Total
millions)
North
American         $ 101       $  150        $ 137          $ 131        $ 519
Public
Sector
Managed
Services           95           87           124            55           361
Sector
Business
Solutions &        (11 )        35           33             79           136
Services
Corporate
and               (29 )       (4   )      (30    )      (53  )      (116   )
Eliminations
Total
Operating        $ 156      $  268       $ 264         $ 212       $ 900    
Income
                                                                       
                                                                       
Fiscal 2012
Operating        Quarter Ended
Income by
Segment
                 July 1,     September     December       March
                             30,           30,            30,
(Amounts in      2011        2011          2011           2012         Total
millions)
North
American         $ 118       $  (132 )     $ 65           $ 81         $ 132
Public
Sector
Managed
Services           9            45           107            (144 )       17
Sector
Business
Solutions &        33           3            (1,462 )       (17  )       (1,443 )
Services
Corporate
and               (4  )       (22  )      (21    )      (18  )      (65    )
Eliminations
Total
Operating        $ 156      $  (106 )     $ (1,311 )     $ (98  )     $ (1,359 )
Income
                                                                       

Fiscal 2012 and 2013 Quarterly Diluted Earnings Per Share
(preliminary and unaudited)

Quarterly earnings of the MSS and BSS segments has been recast to reflect the
impact of the CSC's fiscal 2013 divestitures: U.S. credit services business,
Italian consulting and system integration business and enterprise system
integration business in Malaysia and Singapore.

                                                                  
Fiscal 2013      Quarter Ended
EPS
                 June       September      December      March 29,
                 29,      28,          28,         2013          Total *
                 2012       2012           2012
Diluted:
Continuing       $ 0.15     $ 0.72         $ 0.75        $1.57         $ 3.20
operations
Discontinued      0.11      0.11         2.52       $0.24        $ 2.98   
operations
                 $ 0.26     $ 0.83        $ 3.27       $1.81        $ 6.18   
                                                                       
                                                                       
Fiscal 2012      Quarter Ended
EPS
                 July       September      December      March 30,
                 1,         30,            30,           2012          Total *
                 2011       2011           2011
Diluted:
Continuing       $ 0.54     $ (18.46 )     $ (9.19 )     $ (1.20 )     $ (28.31 )
operations
Discontinued      0.63      (0.10  )      0.23       $ 0.18       $ 0.94   
operations
                 $ 1.17     $ (18.56 )     $ (8.96 )     $ (1.02 )     $ (27.37 )
                                                                       

* Full year EPS will not equal sum of the quarterly EPS amounts due to
difference in the quarterly number of weighted average shares outstanding.

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Contact:

CSC
Marcel Goldstein
Corporate Public Relations
703-641-3271
mgoldstein@csc.com
or
Steve Virostek
Investor Relations
703-641-3000
investorrelations@csc.com
 
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