SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Date of Report
January 20, 1995
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File No. 1-4850
COMPUTER SCIENCES CORPORATION
Incorporated in the State of Nevada
Employer Identification No. 95-2043126
2100 East Grand Avenue
El Segundo, California 90245
Telephone (310) 615-0311
Item 5 - Other Events
On January 20, 1995, the Company publicly disclosed its summarized results of
operations for its fiscal third quarter ended December 30, 1994, in a routine
press release, a copy of which is appended as a part of this report.
This information will be filed with the Securities and Exchange Commission on
Form 10-Q in due course on or before February 13, 1995. However, the Company
is voluntarily filing this earlier report on Form 8-K in connection with the
Company's registration statement for the sale of 4 million shares of its common
stock filed with the Securities and Exchange Commission on Form S-3 on January
13, 1995.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMPUTER SCIENCES CORPORATION
Date: January 20, 1995 by: /s/Denis M. Crane
-----------------------------
Denis M. Crane
Vice President and Controller
Chief Accounting Officer
Contact: Bruce Plowman or Mary Rhodes 310.615.0311
FOR IMMEDIATE RELEASE
Moved On Business Wire Jan. 20, 1995
CSC EARNS $26.7 MILLION FOR 3RD QUARTER, UP 23.4%
EL SEGUNDO, Calif., Jan. 20---Computer Sciences Corporation
(NYSE:CSC) earned $26.7 million, or 51 cents per share, for its
fiscal 1995 third quarter (ended Dec. 30, 1994), a 23.4% increase
over the $21.7 million, or 42 cents per share, for last year's
third quarter on a greater number of shares outstanding.
Revenues for the quarter were up 33.2 %, from $621.4
million last year to $827.9 million.
"These excellent results reflect strong contributions from
both our commercial and federal markets," said William R. Hoover,
CSC's chairman and chief executive officer. "The large amount of
new business won in recent quarters fueled a significant increase
in revenue growth."
Since the beginning of the third quarter, the company has
announced five new contracts that it estimates will generate $2.2
billion in revenue over their terms. This includes an eight-year
outsourcing pact with Hughes Aircraft that CSC estimates will
generate $1.5 billion. CSC also acquired a majority interest in
Ploenzke AG, Germany's largest independent computer services
company, which has annual revenues of approximately $170 million.
Domestic commercial revenue rose 12%, from $255.4 million to
$285 million, paced by a 40% increase in CSC's commercial
consulting business.
International revenue more than doubled, rising from $82.2
million to $175.1 million. The growth resulted from major
contract wins in recent quarters, including a 10-year outsourcing
agreement with British Aerospace that was signed during March
1994. CSC estimates that the contract will generate $1.5 billion
over its term.
Federal revenue increased 30%, from $283.8 million to $367.8
million, reflecting new contracts won during the fiscal year,
including an eight-year contract with NASA's Marshall SpaceFlight
Center in Huntsville, Ala., awarded in May 1994. CSC estimates
that the contract will generate $1 billion over its term. About
half of the federal revenue increase is attributable to an
acquisition made Dec. 31, 1993.
Hoover said the difference in the growth rates of earnings
and revenues is partly due to increased marketing and proposal
costs during the quarter as CSC pursued numerous new business
opportunities.
Also, net interest expense rose $4.7 million, from $2.8
million to $7.5 million. The change was due principally to
higher interest rates and increased borrowing for acquisitions
and the capital required for outsourcing contracts.
Pre-tax income totaled $43.3 million, up 23.9% from the $35
million reported for last year's third quarter, and the effective
tax rates for the two quarters were 38.3% and 38%, respectively.
- - -more-
Computer Sciences Corporation - Page 2 Jan. 20, 1995
Revenues for the first nine months of CSC's fiscal year 1995
totaled $2.4 billion, up 27.2% from the $1.9 billion reported for
the same period last year. Pre-tax income rose 20%, to $115.5
million from $96.2 million, and the effective tax rates for the
two periods were 38.1% and 39.6%, respectively.
Earnings from operations for the nine months were $71.5
million, or $1.37 per share, up 23% over last year's $58.1
million, or $1.14 per share. Including a gain of $4.9 million,
or 9 cents per share, as the result of the adoption of Financial
Accounting Standard 109, net income for last year's first nine
months was $63 million, or $1.23 per share.
"Since the beginning of fiscal year 1995, CSC has booked
approximately $3.5 billion of new business," said Hoover, "and
we see a strong set of opportunities going forward."
Hoover said the same factors that caused the different rates
of growth for revenues and earnings in the third quarter also
applied to the first nine months.
Domestic commercial revenue for the first nine months of
this year was $812.2 million compared with $764.9 million a year
ago. International revenue totaled $474.4 million versus $209.3
million, and federal revenue was $1.1 billion, compared with
$877.6 million.
Computer Sciences Corporation had $3.1 billion in annual
revenues for the 12 months ended Dec. 30, 1994, about 55% of
which came from commercial clients and the rest from the U.S.
government. The company is headquartered in El Segundo, Calif.,
and has 30,000 employees in 450 offices, primarily in the U.S.,
Europe and Pacific Rim countries. CSC provides clients with a
wide range of professional services including management
consulting; business reengineering; information systems
consulting and integration; and outsourcing.
Editors: Please see attached tables.
January 20, 1995
Consolidated Statements of Earnings Computer Sciences Corporation
Third Quarter Ended Nine Months Ended
___________________ ______________________
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
In thousands except 1994 1993 1994 1993
per-share amounts ________ ________ __________ __________
Revenues $827,901 $621,361 $2,354,532 $1,851,767
________ ________ __________ __________
Costs of services 661,815 494,176 1,877,354 1,494,737
Selling, general and administrative 73,471 56,121 223,567 159,640
Depreciation and amortization 41,812 33,292 119,644 93,369
Interest, net 7,475 2,811 18,470 7,773
________ ________ __________ __________
Total costs and expenses 784,573 586,400 2,239,035 1,755,519
________ ________ __________ __________
Income before taxes 43,328 34,961 115,497 96,248
Taxes on income 16,580 13,285 44,004 38,143
________ ________ __________ __________
Net earnings before cumulative
effect of accounting change 26,748 21,676 71,493 58,105
Cumulative effect of accounting
change for income taxes 4,900
________ ________ __________ _________
Net earnings $26,748 $21,676 $71,493 $63,005
======== ======== ========== =========
Earnings per common share
before cumulative effect
of accounting change $0.51 $0.42 $1.37 $1.14
Cumulative effect of accounting
change for income taxes 0.09
________ ________ __________ _________
Earnings per common share $0.51 $0.42 $1.37 $1.23
======== ======== ========== =========
Average shares and equivalents 52,505 51,550 52,334 51,186
(Figures shown hereon are unaudited)
January 20, 1995
Revenues By Market Sector Computer Sciences Corporation
Third Quarter Nine Months
_____________________________ ______________________________
Fiscal Fiscal % of Total Fiscal Fiscal % of Total
In millions 1995 1994 1995 1994 1995 1994 1995 1994
________________________ ______ ____ ____ ________ ________ ____ ____
U.S. Federal Gov't.
DoD $204.0 $167.6 25% 27% $604.6 $519.2 26% 28%
NASA 81.4 54.6 10 9 219.4 163.2 9 9
Civil agencies 82.4 61.6 10 10 243.9 195.2 10 10
______ ______ ____ ____ ________ ________ ____ ____
Total 367.8 283.8 45 46 1,067.9 877.6 45 47
Commercial 285.0 255.4 34 41 812.2 764.9 35 42
International 175.1 82.2 21 13 474.4 209.3 20 11
______ ______ ____ ____ ________ ________ ____ ____
$827.9 $621.4 100% 100% $2,354.5 $1,851.8 100% 100%
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