CSC Lowers Year Outlook on Government Contract Delays
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)