Annex Research| Annex Bulletins|
Index 2003 | Search| Feedback| Clips| Activism| Quotes|
The copyright-protected information contained in the ANNEX
BULLETINS is a component of the Comprehensive Market Service (CMS). It is
intended for the exclusive use by those who have contracted for the entire
CMS service.
Excerpts from the Confidential Client Edition
IT SERVICES
Analysis of Computer Sciences Corp.’s
First Half FY04 Business Results
War Is Great!
CSC Thriving in Global War Economy: Government Business Almost Doubled
PHOENIX,
November 12 – “War
is great!” - could be the new mantra of Computer Sciences Corp. (CSC),
juxtaposing the “Allah Akhbar” (“God is great!”) chants by Islamic
warriors. It’s just that there is nothing idealistic or religious
about CSC’s war profiteering. The
company’s federal government business is booming, especially the
“death merchant” (Pentagon) portion.
Thanks
to its acquisition of DynCorp earlier this year (see “Back
to the Future,” February 2003), CSC’s U.S. government revenues
have nearly doubled (from $772 million in second quarter of FY02, to $1.52
billion this year). Revenues
related to the Pentagon contracts more than doubled (from $449 million
last year, to $985 million in the latest quarter).
This vaults CSC into the No. 6 position on the Pentagon
Top 50 list.
And
CSC’s winning pace in Washington seems to be accelerating.
About 80% of its new contract sales in the latest quarter ($3.5
billion) were the federal government awards.
By contrast, only about $700 million of its new contract sales came
from the commercial sector.
[snip]
CSC Stock Surges
Meanwhile, Wall Street lapped up the CSC second quarter report, boosting its stock by nearly 10%, just as it did nearly six months ago, following the company’s final FY03 release (see “Less Than Meets the Eye,” May 2003). And it did it on a day when the market remained virtually flat (see the CSC vs. S&P chart).
[snip]
Stock Market Quirks
[snip]
Which of the following top six global IT
services competitors has shown the best stock market performance in the
last six months (in alphabetical order):
1.
Accenture
2.
Cap Gemini Ernst & Young
3.
CSC
4.
EDS
5.
HP
6.
IBM
[snip]
"That's all she wrote," we're afraid, for those of you who are NOT Annex Research clients, and who are now reading the complete Annex Bulletin (7 pages in print edition), along with all charts which back up our story.
Qualified media and friends of Annex may request a TEMPORARY User ID and Password by clicking here and explaining why they wish to have access to this particular Annex Bulletin. Or call Bob Djurdjevic at 602-824-8111 (cell) to promise not to copy it or otherwise republish it.
To find our how you can become one of our clients, and read the rest of this and other Annex Bulletins, click on . Thank you.
Happy
bargain hunting!Bob Djurdjevic
For additional Annex Research reports, check out...
2003: "War Is Great!" (Nov 13), "Less Than Meets the Eye" (May 16), "Back to the Future" (Feb 5)
2002: Analysis of CSC FY02 results (May 17, 2002), "A Disastrous Quarter!" (Apr 17, 2002), “Tough Times, Soft Deals,” (Apr 25, 2002)
A selection from prior years: Analysis of CSC calendar 2000 results (Mar 26, 2000), CSC's FY2000 Business Results (May 10, 2000), Business Is Humming Nicely (Nov 3, 2000), CSC 3Q2K, CIO Survey (Feb. 29, 2000), CSC: A Mouse That Roars? (Nov 1998)
Or just click on 
and use appropriate
keywords.
