CSC Corp. / CSC
About CSC Corp.
3170 Fairview Park Dr., Falls Church, Va. 22042
www.csc.com
| 703-641-2222
| Founded: 1959
Industry: Information Technology | Category: Public Companies
For sale or not for sale? That was the big question surrounding Computer Sciences in 2005. Over the summer, the company held talks about a potential buyout by Lockheed Martin Corp. and private equity firms Warburg Pincus LLC, Blackstone Group and Texas Pacific Group.
Bethesda-based Lockheed, seeking to diversify beyond its core business in defense contracting, was interested in CSC's government contracts, which include information technology consulting and the development of vaccines through a joint venture in Frederick.
But sources said Lockheed did not want to buy CSC's commercial units, and CSC was reluctant to sell off the company in pieces. There was also no agreement on price. CSC reportedly asked for at least $65 a share. Talks stalled in the fall. District-based private equity firm Carlyle Group also expressed some interest in buying CSC. Blackstone and Hewlett-Packard also talked of teaming up on a bid. But no deal emerged in that round of talks.
In February, CSC reported a sharp rise in quarterly earnings to $203.5 million, or $1.08 per share, on strong revenue from federal contracts and private consulting work. In announcing results, chairman and chief executive Van B. Honeycutt said he expected continued "robust" revenue from the federal government, both from the Defense Department and civilian agencies. The company said it expects to earn between $3.27 and $3.31 per share for fiscal 2006, excluding any special charges or gains. That would top Wall Street's expectations.
In early April of this year, the company announced formally that it was considering a sale and had hired investment bank Goldman Sachs as its adviser. It also said it planned to cut about 5,000 jobs, or about 6 percent of its workforce, over two years, with most of the cuts coming in Europe.
Chairman and president: Michael W. Laphen
2005 Financial Data
Revenues: $14,058,600,000 | Net Income: $810,200,000Asssets: $12,633,900,000 | Earnings Per Share: $4.22
Total employees: 80,000 | Local employees: 11,000
Did You Know
CSC is an information-technology services company that splits its business between the government and the private sector. The company's specialties include outsourcing, customer-relationship management and information security.
