DXC - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day ladies and gentlemen and welcome to the DXC Fiscal Year ’20, Third Quarter Results Conference Call. Today's call is being recorded.

At this time, I would like to hand things over to Mr. Shailesh Murali. Please go ahead, sir.

Shailesh Murali

afternoon, good and you everyone. Thank you I'm Technology's us DXC joining Quarter pleased Fiscal that Third XXXX for are Earnings Call.

of Our Investor Mike today. call, these Salvino, includes slides Officer; call After webcast at will the and is will Relations the This today's on our our slides Executive webcast and Officer. Saleh, and website. speakers Chief post Paul accompany being we Financial call that section will dxc.com/investorrelations, our the on President Chief be the discussion

Slide GAAP adjustments two that have of be a investors. reconciliation can we participants included provide DXC Technology's their found these financial measures our presentation in non-GAAP with informs rules, our measures, the believe respective includes and today's provided to These directly we measures. to accordance earnings release. tables reconciliations certain certain to which SEC comparable in measures information and further useful In most these

you'll that Report unknown on slide Form risks risks On and those these actual XX-K we which These will and known is call. be uncertainties SEC results in make call included uncertainties, the the other materially discussion could A see are to expressed from Annual differ forward-looking. filings. and of cause three, statements subject to our certain on and comments on

the like would on presented information the update assumes to by call, to law. I remind as obligation our Technology listeners DXC no except required that

Technology's introduce like I'd now, CEO, DXC to and Mike. Mike And President Salvino.

Mike Salvino

everyone the Thank you, call today. Shailesh, and joining I appreciate

follow today focus concerning first that my will of is our call, style comments earnings clarity, As on quarter and direction. my I mentioned one the and

represent on progress of this discussed the QX priority call. call on during will value business for the update priorities agenda Let me against transformational journey the we’re quickly today's We at the unlocking that focus These the DXC. earnings our and our strategy. you running call. outline I

closing business our journey our will details then year. and quarter quarter before and full on remarks fourth what's Paul fiscal third the the questions. results, outlook next through take make for financial concerning you I some of take the will we then transformational

pleased We Turning progress results business value. nicely financial new did on with our in-line the to we we the the quarter, we're Simply and and with third executing of we priorities made our reported are unlocking running what to going put, our we've I'm against focus strategy. said do initial plan.

is Revenue X% currency. sequentially up in constant

expectation our three and We It profitability ratio was in our of also best delivered on X.XX. our book-to-bill quarters.

new fix, transformation will I As I’ve am but before, IT the quick confident DXC a not compete that will you discussed position space. this be services with to our focus in strategy

customers, you color little value. give around operational making execution we're unlocking the people, me a with progress Let now our and

work services us is As customers”. sales the are the of deliver that fly, I unique customers, with planes space. our meet our not customers, with types infrastructure “inside the operate, our in the services courage impressed heart most The customers customers years. to our have entrusted DXC that phrase I’ve are of used applications running at businesses. the of and for I’m the continue are the critical completed. have do Friday to Black for IT This Without don't our we day and people every for hospitals truly don't we

one business. system This key we is by to earn of to our running leveraging strategy some will have I our ITO trust DXC. ITO that right our win customers’ and with business of During our customers. our business critical a delivery focus our fundamental that tenets belief additional needed leverage regain mentioned investments last call, of and smoothly, the our the I to improve grow make we to

challenge reviews category, completely. XX doing We pleased saw We we're with capabilities making in-depth levels original had in were progress. performance. meeting not two good we assessment to and delivery and that started meaning My the management our and not were focusing terminated have partial been or some XX on service account accounts and customers accounts terminations

very to represent a about establish address this program with that program we These quarter out of Overall XX graduating accounts is to issues. accounts a focused these includes a revenue. accounts our this seven good program. off start, During this quarter of

by completed to expect be of the in to of the be the majority end ’XX. of We first these the program accounts turned and QX half around fiscal

comments of total, positive the created receiving in momentum calls been customers. program XX during clearly I've check-in has and this our my positive with

from of awarded $XXX form of the over of in accounts new In million renewal and several fact, been these already business we've work.

previously network of and the an on is and technology at is to strategy evidence operational enterprise that the analytics, was leveraging top and grow the people right customers, of which DXC. new Some of is is business focusing This hold, ITO the execution some this on stack. put work our the solid

we held and telling quarter completed feeling global Halls that region survey; are every representing have are are people over Town comments Turning They this now engaged. that optimistic. seeing they we are employee and to in changes our have XXX,XXX received our us a people, past positive

focus people for our and areas are current learning prospects Our career opportunities, compensation.

typical increases our ahead a of investment this great review for our During of our quarter action centers was example India salary salary cycle. and implementing delivery

we delivery in we progress DXC where to In talent. is functions. of XX areas corporate new and QX the roughly leaders account making are had Another attracting area management,

part and Chris to impeccable leadership in roles transformation Both We DXC have companies, Carla two joined leaders but prior the our senior their be also broad team. more experience resumes, added played journey. broader and a of to

Security, Risk and Virtual deliver and IT to Management, be our will Chief will lead our and our Risk to customers. serve to our transformation Chris Enterprise Physical people Overall our and Compliance leads and CIO is tools better Ethics Officer Carla and

Leading couple leadership our now is and key Delivery I've of also for Vinod changes. a Steve in accountable made is UKIIMEA. business Global

making is positive immediate the team hires of are total and the with team an these impact. existing All integrating well and

working for a team. we of evidence this as well book-to-bill X.XX Our quarter are that is

positive Ian out us transformation the brings DXC’s CEO a evidenced the and journey. DXC market thrilled of about company, I This is am seeing by of join also and others shift alumni wealth Ian particularly to perception. public in that us transformations. a rejoining our brand of the We're be Pfizer leading Read, experience, large the joining as through area will Chairman in new retired reaching Chairman.

of confidence strategy. All can we integrate retain attract, focus on this our talent to gives me execute that top and

Another is key component operational running the execution. to business

and delivery and our and improve to goal steps operations. is and delivery of delivery. examining delivery taking are to speed scale are footprint, our talent Vinod his team quality, our execution. improve cost Ultimately our consolidate further to utilization We

moving we model, operating speed tighter banking From those of a the in two and system bringing also our now automotive to our Lexar and industries. to Dmitry’s industry are opportunity perspective, take advantage up management making focused regionally capabilities accountability. with together an are We decision leadership increase with to designed under

I ITO As leveraging are previously we business mentioned, to begin to our grow DXC.

Let detail on me more you plan. a give the little bit

We concerning based us our are virtual These clarity our dialogues assess estates industry of using to assessments fact will estate of of customers to IT with to the their the IT the migration allow have top unique capability our cloud. XXX accounts.

technical ability XX quarter of we we execute the assessments in and customers our with feasibility, about with of discussions need complete top for migration, along the for will assistance. market a customers. to will these and such fourth risk, our our these their we In value engaging accounts talk be proposition the In the

a will which This and our has work concerning the numbers productive us cloud. mission ITO applications give fast business, allow customers to will have move and with our it to critical and of large in how discussions proactive hard infrastructure us amount

Now given to our let and with to their us value. an technology opportunity comments area engage turn our clarity focus The customers has the strategy the align me on of stack enterprise my better to with unlocking needs. of

stack our introducing to are us they by breadth and to of the the customers across trying customers industry reacting communicating in We and that offerings positively have an our services. technology are our interest players enterprise

three pursuing set executing track hit also are and ourselves. are we strategic well alternatives on for to for the businesses, time-line We in

to advisors with effort have this us help be market and this the We our world in month. is plan several retained to class

businesses. Let me briefly on the three comment

and and were In in-line final other new as BPS the and Local the and been but expectations. in State In it’s usual, of to Workplace they state with portfolio. horizontal one business, Health our mixed, Human adding two business stage were Services, and we're our results Mobility,

On the existing customers side, renewed or have some positive awarded new have us contract. work

intent However, there has have are been with a us. renew renewals, out to insourcing few not work where customers the their indicated cases or pushing

and Now I'm the the third through Paul to results for going business over call to full our take hand year. outlook quarter you fourth and the to

Paul Saleh

Well, thank everyone. and you Mike greetings

share. we quarter are start results pretax excluded per $XX the or covering non-GAAP I’ll current of had In by usual, that this from restructuring items $X.XX diluted As million quarter. our costs some

Now facilities were workforce optimization rationalization. related primarily these costs to and

million Also acquired integration million amounted diluted pretax third was $X.XX share restructuring, separation related share. per amortization in the transaction, to integration of and share. separation Year-to-date the and intangibles million per In transaction diluted or per $XXX costs. $XX or pretax costs of quarter we $X.XX pretax quarter, had of diluted or $XXX $X.XX

million of related out of we quarter. adjustment quarter, goodwill second took Now $XX in the recorded in we to tax period the the an impairment

impact Now net this share. continuing per income not non-cash earnings does or income from operations, adjustment

is that involve we internal weakness of financial control we not does material with issued connection and any prior determined this of complex weakness out over our processes. and primarily restatement relating transactions to This in However, reporting, this period adjustment, have in a material financials.

business expect our in about to we included XX-Q, information which is plan more of the our tomorrow. remediation file after Now close Form

more quarter items, taxes our EPS these I'll non-GAAP million was before our special non-GAAP Excluding in third continuing move of $XXX to $X.XX. results now on all and operations our income was detail. from

GAAP was in QX revenue billion. $X.XX

As discuss will in comparisons will I revenue constant currency. be always, all

revenues of represent increase a Our QX X%. sequential

put and a work with in in-part, we our customers, who previously hold. compared While reflects quarter on growth us QX, revenue typically in add experience on this activities business project from with have QX also pick-up

to are challenged starting we off. Now encouraging that turn accounts these making to pay the are around investments signs are

million, you the in was our on Adjusted line last shared adjusted EBIT the in with margin we was with plan earnings quarter $XXX EBIT call. XX.X%

Our was in That and business, basis take-out consistent sequentially. our as priorities reflects people additional of well investment down cost the execution. as of operational XX points moderation margin activities, EBIT the stated customers, with our

XX.X%, few was to XX% from than our slipped slightly bill of stack. our XX.X% was margin the and billion, enterprise among senior layer QX the deals book adjusted quarter Book-to-bill billion X.XXx. was every rate for members the was This revenue and to tax opportunities close were our that non-GAAP $X.X business leadership quarter team. were bookings XX%. able of collaboration of expectations billion, in QX of the the We $XX.XX new reflects and Year-to-date, better the had to across convert was technology In all X.Xx. EBIT book-to-bill $XX.X a

Turning consistent the segment now business, strategic state layers the to our BPS segment enterprise results, are and for Human includes stack. of the review. which also global technology of services now business Services business horizontal local It and Health under the and upper our three

$X.XX quarter, was billion up year. sequentially to close revenue the GBS in year-over- XX% X% up and

Luxoft, completion BPS was to year. of year-over-year, this the application a large few revenue a insourcing the due Excluding GBS down and X.X% primarily contract earlier projects of transformation

the margin with making the in In our slower of well as cost posting investment $XXX million profit a pace basis we're of profit take-outs. the book-to-bill talent, offering margins GBS points, in was X.XXx the XX reflecting digital were quarter quarter down Xx. was XX%. third as every Sequentially excess GBS segment book-to-bill was in and

were saw billion, In $X.X business. $X.X data we for Year-to-date engineering margin was was billion and analytics a services was bookings book-to-bill strength $X.X revenue our XX.X% segment of billion, Xx. particular and in profit GBS

segment. and Now workplace turn for under our and consists ITO, mobility which includes technology The to the the let enterprise layers GIS security stack. is business, of business of strategic me review. also GIS Cloud GIS now

was GIS work revenue profit Year-over-year quarter accounts. up segment was $X.XX was down the our profit take-out of actions cost basis Sequentially accounts. around the $XXX in quarter, third our roll-off was primarily sequentially. delivery points, insourcing profit making GIS the we're in down in XX XX.X%, margin to turning X.X% billion the the in select and revenue due slowdown investment challenged million in margin and X.X%. and was reflecting

billion, and previously that segment book-to-bill from well quarter GIS million, for bookings delayed, revenue pipeline GIS $XXX of $X was in were Year-to-date the reflecting add-on as conversion of challenged award the of were XX.X% the opportunities was book-to-bill work account. X.Xx. was as and margin project X.XXx, $X.X billion a profit was

up digital on earlier X.X% decline due the the within on X.Xx. stack. work is roll-off the previously concessions price revenue terminated ITO layers of their Now customers down Book-to-bill with but year-over-year let the efforts. year-over-year. help sequentially, transformation me select accounts made performance to year briefly The enterprise of to comment and primarily was technology was in XX.X%

Cloud is and Book-to-bill QX was of last sequentially the up X.Xx, we’ve book-to-bill revenue and best X.X% was year. security year-over-year. X.X% since had which

up X.Xx. up application up Moving time four was quarters This IP X% our the first was application sequentially excluding business stack, layer in Book-to-bill that and for X.X% cloud grew applications industry year-over-year. stack of the our the this is enterprise sequentially. and

by Data services revenue two X.X% analytics, sequentially year-over-year business, fold. up engineering was and there up

Excluding performance grew with across board. year-over-year the basis. services X.X% Book-to-bill analytic engineering X.Xx solid Luxoft, and a data on was

year-over-year Lastly, against prior up down advisory year sequentially, a but revenue performance. strong was nearly was X.X% Book-to-bill X.Xx. X%

but under decline sequentially, down primarily the digital by in those were businesses mobility three shift strategic from business. X.X% driven up was the and year-over-year. collective Turning review, now traditional year-over-year to workplace X.X% to The businesses the

We're moving and able timeline to are case to three We still the effort we will $X as previously confident proceeds stated. market be are we the strategic for and of from for realize this that that the coming all weeks the plan billion tracking in net be businesses. in reviews

cash Turning by working receivables XXX% cash reflecting the adjusted our use billion net flow of XXX% Year-to-date adjusted income. the million. adjusted improved is to capital our facility expanded and million, free of or free financial a flow management quarter net of adjusted third was income, $X.XX $XXX $XXX highlights, in

free fourth a more and fourth will percentage at insurance for we ‘XX large outflows, one as functions remains match cash unchanged recover or quarter settlement flow adjusted cash target full Fee flow reflects two of more. Free the capital and payment year, our for conservative income flow from our contract also the cash net in coverage. For XX% working that second quarter. to the the to cash cover in XXX-K a annual expect reflect fiscal

of million CapEx and a in $X.XX $XXX X.X% CapEx was basis revenue, revenue. the was on X.X% of or quarter or year-to-date billion

of million returned the $XX $XXX dividends During million a in shareholders form Year-to-date shares $XXX million quarter, paid in million. share for million in dividends capital we’ve $XXX we the total and of and repurchases. $XXX to in $XX million of repurchased

XX.X%. Net $X.X at Cash including debt ratio end total billion, quarter $X.X debt the was capitalized total of the to was billion, capital our leases. was

agencies, updated but which DXCs negative. will second quarter Following DXC, was credit rating and ratings and negative. rating our a reports alternatives issued our revise earnings unaffected, were on call, outlook three [inaudible] agencies pursuit of all their to strategic as that Moody's outlook credit indicated

remain making tucking balanced in capital and our including returning to profile. allocation, the protecting credit investment capital shareholders, grade reinvestment we to strategic committed a acquisition business, Now while

in in the In from accounts. billion revenue $XX.X range softness U.K. the slightly we uptick longer be closing, expect to to we revenue revenue key seasonal the to continue in primarily billion. as we of target Sequentially $XX.X typical due expect no to down, certain

quarter margins of we're profit making. reflecting investment lower sequentially, full the expect to the impact be We

management particularly These addition and challenged in in talent of the investments, investments previously support accounts finance, leaders, to particularly acquisition, of finally, additional deployed the new share our resources additional and XXX not delivery turn HR, increases, our include, centers, investment ITO top functions, our risk assets ongoing accounts, to salary around senior state contemplated to including IT.

the towards targeting range year per lower although For to range. of the are we of full end $X.XX that we non-GAAP share, remain are EPS a to in $X.XX trending

remarks. Mike I’ll for back his to turn now the closing call

Mike Salvino

Paul. Thanks

against first third of decent done good our a executing step results focus are our new We’ve Our strategy. job on quarter journey. a transformation

significant in need structure earnings scale scope last a cost services, customers of services transformation call, and reduced we and have their I IT our support As to needs. our said

strong Although I’m our a strategy the in we execute. that team very we transformation building win because will focus have confident future, DXC fix, not are this proven position our and to market be a quarter, we the quick will can in

expect priorities with the quarter, turn is customers. the the our be this complete Virtual majority plan challenged to estate our and account are in to end market by our the we With around the of plans also the Clarity QX follows: first of XX with engaging and customers, In accounts IT as

front, talent the value global employee of survey, our feedback high employee implement On continue to plan continue DXC. the people we our proposition address attracting to to and

In the the area model will of Operational complete Execution, our and we our rollout support operating of of structure. regional

with plan conducting and investment regional the we Enterprise Stack develop and We our also be for better our will align portfolio to offering level to the reviews, business focused fiscal detailed plan XXXX. streamline account at to Technology

as make we three for progress along unlocking expect that stated our on businesses. to move timeline value, the Finally, we page

again for questions. for joining you open and will the we now Thank call, the line-up

Operator

you, Instructions] first Thank Our will America. [Operator Bank sir. Jason Kupferberg, of from question come

Jason Kupferberg

Really Good off, the Hey, ask, plus X.O nice gate ones the target the the combine we back just then think progress, you book-to-bill you'd if given fiscal of here, on guys. [ph] see into potentially do couple are congrats when you to with comfortable any you I last, thoughts the so afternoon out us last review one of quick will. just just thanks. of to a sustainable. that. question on first here still strategic announcements. quarter first I XX of is But know going to and wanted

Mike Salvino

So look, Jason comments. for your thanks

We upon the and of you are and that First we do. moving the to looked months XX the execute would we’d we're next said continue know them on alternatives look across going to at all what strategic pace. be alternatives, that's

months. made we've and it been the good. customers, As the encouraged think of programs by very I've our I When sustainability look three XXXX and about about you that'll recent activity book-to-bill, be over XXXX, very to people the right a to of what market have earnings any progress know updates year for The the transformation provide is relates last that additional the us, I our plan going XXXX discuss that and XXXX people next And in and for expectations customers, continue do and to to invest our execution plan call. transitional we're also our time. to on I operational on plan then at been

won't on be than gave any outlook Paul XXXX. that, know we that commenting other on be you I further and So the won’t

Jason Kupferberg

book-to-bill. the on Just

Mike Salvino

but good what to on be start, right. I we mean will Look in and progress we QX, book-to-bill a in you make know are expect made around. is going good I continue to we

a bit bottom lower, we mean slightly know is I that winning. I maybe motion X.X a little think that the but have is You the line market in

Jason Kupferberg

Perfect! Thank you.

Operator

up Darrin Wolfe Peller, is Next Research.

Darrin Peller

Hey, nice job bookings. guys and good

emphasis like Let DXC feel I mean, it. organizational I portion that clients I and but meaningful that’s now how kind just company Maybe guess the of assume case. XX reemphasized that focus in headwinds that, how the me to Thanks reacting of on one there's about. Mike are also just start the I’d your parts employee on talked reenergized seems the reacting your piece; culture how Do you ITO the just about all to clients you of refocused the It feels appreciate a on of guys. to touch are the base. hear investing clients internal ITO I one the been off. color like on in

Mike Salvino

thanks look, that. Okay for

it's It’s green First that, the call just orange, it I when layers. I clients that’s service the those the thing, the layers. layer right. ITO took in-depth of what and went the on line the so the XX into not those an stringent about a talked apps review, on also I all, because layers, in said, the two what are I very like levels, I in easiest just clients wasn't comment, And mean or within

customer. the got effect, on red – listen inside. then you in to on You you know the What the red the is on know place market the that on green green and voice the you inside watermelon hear of outside, the the means to

them where sure month, I'm now, as if said needs it to calls it it into be, that So to it simple needed performance put was I’d where these mean and make as our XX made the program. I when that, wasn't XX customers a to talking I I alright. be is to

is And if note program, that of get the program moving the of the or that hear, performance over out only a I out a is client says have seen happy and call the a get we've way month. you’d

have you gotten seven you said be out, of know to expected that sort as framework, it I you when know would So the relates progression.

but definitely second to we're custom of the and when the say by quarter results. from you like right, employee is, the about wanted DXC, the right sit and our was then you to really and because our in side know you energy our one here the that that taking not transformation, would they are that the know the not what know talking and of into your it, people with The engaged, transparency bleeds Town global whole openness that terms they call market, in but survey, happy, see and well market. out all Halls And our side did customers people tends are to get the that only but they responded our I only people

back and impressed without rejoining, then with saying, movement, that right. the the call highlighted what place want the with So able it honored, been I very talent to new come along alumni is to Meaning goes join I'm I attract. all right. that’s and we’ve a DXP reason people am I

tell would I you, very the receptivity that So has good. been

Darrin Peller

guys. Thanks

Operator

hear we’ll Ellis, Lisa up from MoffettNathanson. Next

Lisa Ellis

of longer off you updated are free you coming XXXX, I DXC. for the start and you're then term Thank foreseeable Do for Paul. good adjusted going bit think see And they making just kind kind cash XXXX of you, separation go sales of big one down and to a to future. you. little that’s one Hi, strategy to and third elaborate to mean be about restructuring Paul just as to or guys, flow a the any for for the good cash Mike and market one for or your changes a I of you afternoon are support the running got can maybe on and that, model flow a for here. so look costs I sort piece outlook. the know of you an into free driver important Mike,

Mike Salvino

go I’ll Lisa, first. So

changes lot, model, this word you hear In focus. a of I say is terms sales know would you'll on what the is,

about went of cloud. I tell the into when plans, little to just are detail business the Clarity the was that you, estate getting Virtual So IT I'll was run people saying tired to a ITO I going

do it's in that, So far the most of around the know started and reason I critical stuff more of private going goes, when KL analysis public to what cloud. nature, so cloud cloud. you it a been the now, will go The take will that bit a business that's the a right time. we it state that stuff, And and gone know you little the being that to has have nature usually and easier of to critical to the

our force. check estates us handing we literally that right, because detail with team myself I the to were they such reason are sales involved is Lisa, into I curious. did with the on map the getting more in customers, when you know is leadership all And to conversations accounts, those in So those road be went asking the and

plan show-up what of their going and not to happen of going of to on part can as the point up, only of here, we're view, new sort we're a but a detailed we're So show-up estate. mindset you with with know showing

before do see detailed change we I’ve and far, detailed are conversation plans analysis all can the new to want with right, existing I into new that see that's accounts plan, level also with. the client. for walk these we is because to so I when competing want made high we that So have a right the a account, we main

thing So for main that's the I you. would highlight

Paul Saleh

it’s Lisa, this on quarter. And really just the been restructuring,

to the example related some restructuring of had countries. For we complex some more

I term transitional ’XX, through Mike to As and be at us. to fiscal going as the year look near mentioned, is this its for particularly a

also option a targeted, costs of stranded from to from business, restructuring out there going going those all bit reviewing be perspective. three strategic coming to switch is are Importantly those the the a we the be little

‘XX indicated And granularity moderate by start terms little a about restructuring then bit the we expect and our fiscal as of have little bit to we’ll more in think coming expectations providing to previously, quarters. a more on restructuring we start in to

Lisa Ellis

Excellent! Thank you, thanks guys.

Operator

DeepDive Equity Research Rod next question. from the has Bourgeois

Rod Bourgeois

quarter Okay the guys, looks like. nice December it initial step in

progress near that could quarter create it seems some these of process, and are three initiative and positive to efforts still in juggling December made disruption, it working in So the some multiple still And the on that turnaround sell seems you're you're turnaround particularly revenues. those you’ve term assets. that though multiple some to

starting So to what with. I'm occurring I'd is have while before fiscal your the still your is deal pay assuming potential like around really to disruption be off, can that experience disruption so with full ‘XX far business ask, what turn might you and work really drive

you're the as fiscal far trying risks of experience some potential and your so thinking would approach disruption to against is like for turnaround period, weigh we hear to essentially progress that. what ‘XX how about I'm So revenue and

Mike Salvino

I'll that. Rod, Okay take

business you but right, as local, health know you usual. if business, for First the the know about I at all, look thanks obviously one it's Human strategic When of you think and question. state, Services the business alternatives,

In fact the are one adding, about happy we state that. very

thought The thought in stuff line workplace and thought. right, win We some would away. with we'd what mobility some businesses have and go stuff horizontal we that BPS held-up we

put to disruption alternatives, revenue not side. to we're you that know we’ll seeing, so one the So strategic

terms disruption, of decisions such terms contracts past the why bringing of a we in of new balance got that's business, can balancing flowed into because come new look, the delivery, on that businesses act the in term is that of out. has business this new XXXX business, were and so right, also online that – focus the on rest to know you now The made revenue in have been that

I transitional the at be will year, that So way still look XXXX right.

work I We from unlocking hoping will XXXX a have in with also year at we that past, XXXX doing, customers’ obviously are we with the and that Rod, But plans dealing these know but will going we operational that accounts stuff, people challenged our the that stuff be execution. some as of in be right, positive. deal estate I’m some but invest you will with with transitional the some are to IT of the motion I'm still look alright, where in of hoping the

progress mean we clients top board, I rest the So meetings, They thing work client forward the look, to our is highlight across the very right, bottom looking of blue. talk is stack fact the the stack I of line I'm the not and that to and about to would our curious getting the is that are seeing this when in I I'm in have. it guess the about us, is just where the the

I automotive together mentioned Luxoft. with and about banking bringing

got be to to Luxoft nicely. have capabilities has have the sure really to the nice in make we're very of that combining able agile compete that workforce the should a And that in stack the really, We we we market. top deliver

that’s about the it. anyhow So I Rod, think way

Rod Bourgeois

helpful That's thanks. color. Alright,

Operator

comes Cowen. today next Our from Bergin, Bryan question

Jared Levine

Hey, is actually Jared this Brian. for Levine on

period hires? do where of make-up Obviously a with a of in short lot stand you the September. Mike, So since your announcements direct

rank to to action. Just do senior have your into plan at really a lot the put

Mike Salvino

our a just bringing hires a integrating is know level are of really that perfect we right isn't team. This the step I I've person. place. the my when seen, example call reason able regional to the that, on – a want because continue a that are that that, we Carla the in Where a hire. for focus I I've implement into here, is what really that want about my You to know know, alright, all attract typically so places in and you comments model, to that’s new with know talented have well you the now know for you res sense take highlighted look, to gone detail standpoint hires operating new are talented is did folks I of new a up, lower were you

think after to know to continue systems got one, and why do when to need mean knows we you as GE. more Chris. with I and forth, CSC, along with we EDS controls being can end went and IT is environments the alright, right. another I of HPE Chris our deal I with imagine about back complex to mean, right, how that's at you so with

hires, also disparage with the existing don't existing was incredibly team the but to So because I talented. very want team, pleased the

making I want that together people and is a thing The don't come said, that proved in they’ve and start to QX the of together highlight haves here a have have like I as for series very and together we not’s well. impact. come team results could quickly We

my be there. would that So comment

Jared Levine

Thanks Great! the for color.

Operator

Citi, from Ashwin Next hear Shirvaikar. from we’ll

Ashwin Shirvaikar

because building good about in, Thanks. and I was end, delayed first the how hi bookings delayed contracts and and in are and improved step that come both pipeline put there process of quarters, talk that's delayed function is you coming here, stronger has these if now September much contract How the when Paul. the bookings in what’s performance. also more My can in at Hi been to prior Mike, a you contracts is the know causing I is a of whether now It’s delayed it occurred of appreciate of was what still question specter the the in? was year outstanding on quarters? it. context from that in June booking

Mike Salvino

bottom you to the individual Okay, with start the then go details. so let back I'll and me –

I you of on getting when things So are in talked wasn't mean where call, to happened, in did I'm something just wasn't year-end what in you something guys place also the and putting type place. my thing, alright I November miraculous, because know into first terms XX it we it right,

and ground that so up ‘Hey, unlocks But what right. was tell I forth. on and our on clients up came front saying, with We attitude, the the what and swell these center, with here’ let dealt hold we and from to will we something were and with making going on showed with along stuff, put sure new we alright there's I’ll you I cared, numbers get that on Paul call people focus the new detailed a along

not The just out marketplace the my we're that hold. also we're is ITO not with fact the you curious digital, what know challenged know but this means It's about used in them, the be that alright, and stats, business, enterprise comments in the operational talking make had call the it's to thing execution, was would right. only us you we're which to the with put around technologies in being more is we sitting is not be other just also comment finally those we that and – on work there’s I that and work I at to with accounts, clients still made

approach insights. analytics and a selling; very about apps then focused we're you and have ITO, what cloud, We know

tell So putting and would out in you, we're I market that's the first decent step. that motion the

Paul Saleh

half million separate Ashwin, either $XXX that is And the answer XXX still the your in the Yeah into or have $XXX TCV right, There then already, the first fourth all two another other around million hold, up contracts quarter that that’s the – mentioned – in deals been have to on of out grabs, then is of of from things and year. things. first slipped million for fiscal the this $XXX ’XX. Mike put in TCV from question,

Ashwin Shirvaikar

Mike, of investors? And you initial passing some can in flow to if you cash relative the that to be the and likely upside are or philosophically, extent expectations, just see on it I you to reinvesting to upside side earnings more on Understood! ask

Mike Salvino

The bottom line is it. Paul already said

understand attention the of keep We I We're our paying know obviously, capital my balanced is are value. shareholder right going to allocation. capital, job terms agencies to totally you we and rating in

that we're to keep going balance. So

Ashwin Shirvaikar

Got it. Thank you.

Operator

question next will Keane, Bank. Our come Bryan Deutsche from

Bryan Keane

in to ‘XX Is year EBIT hold now to things $XX $X on the clarify, fiscal plus think I ‘XX guys. put plus and million I XX% we of Mike revenue year that and and wait margin, see the and or progress? plus. fiscal how still all earnings that of should Hi range wanted was kind non-GAAP just side till

Mike Salvino

and plan to outside to is of know plan XXXX. call and right again for I'm expectations My said, our any I XXXX. around next to question and our comment those not on XXXX you on discuss now next thanks for like update go going I’ll for Brian, reviews I XXXX. the providing call do the account detailed

Bryan Keane

That's Okay, got all I thanks. it. had,

Operator

all questions closing Murali like I'd today. back to time for remarks. we And or Shailesh have is the to addition hand that for things any

Shailesh Murali

We you for appreciate Thank afternoon. us it. Thank this everyone joining you.

Operator

and conference. that would conclude to your like We gentlemen, today's today. Ladies does thank for you participation all

disconnect. You now may

DXC Technology (DXC) 6 Feb 202020 Q3 Earnings call transcript