Feb 9 (Reuters) – U.S. technology services provider
Computer Sciences Corp (NYSE:CSC) lowered its full-year outlook as
it grapples with contract delays from the U.S. government and
accounting problems at its Nordic business.
Shares of the company fell 14.5 percent on the news.
The company, which is being investigated by regulators on
previously disclosed accounting adjustments,
lowered its 2011 bookings outlook to $16 billion, from its
prior expectation of more than $18.5 billion.
"The headwinds to our bookings are attributed to an
abnormally high level of delays in decision-making for larger
opportunities. This is true in both our government and
commercial segments," the company said on a conference call
with analysts.
Since the company’s second-quarter conference call in
November last year, customers shifted $6.6 billion in contract
award dates to fiscal 2012 from fiscal 2011.
For 2011, CSC now expects 2011 revenue of about $16.2
billion, down from its previous forecast of $16.5 to $17 billion.
The company also lowered it full-year profit expectations
to about $5.20 a share from $5.35 to $5.45 a share.
Third-quarter net income rose 15 percent to $242 million,
or $1.54 a share, against analysts’ expectations of $1.48,
according to Thomson Reuters I/B/E/S.
Total revenue rose 1.39 percent to $4.01 billion, while
revenue from its North American public sector business was
almost flat at $1.48 billion.
Shares of the Falls Church, Virginia-based company were
down 14 percent, or $7.95, at $48.95 in morning trade on
Nasdaq. About 1.4 million shares had changed hands by 12:20 ET
— three times its 10-day average volumes.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Jarshad
Kakkrakandy)