1. Quar terly Highlights
First Quarter Fiscal 2005 (Ended Ju ly 2, 2004)
Our market share continues to grow as the environment for information technology services demonstrates
About CSC
improvement. Clients are beginning to increase their demand for the types of innovative business solutions
we deliver. We have kept costs in line while building a foundation to support continued growth. The company
Founded in 1959,
is well positioned to realize the benefits of these efforts and deploy its resources to pursue new business
Computer Sciences
and invest in the future.
Corporation is a leading Van B. Honeycutt
information technology Chairman and Chief Executive Officer
(IT) services company. Computer Sciences Corporation
CSC’s mission is to provide
CSC results for fiscal 2005 first quarter included: Revenue of $3.7 billion, up 5.1% over last year’s first
customers in industry
quarter (approximately 2.5% in constant currency); Net income of $110.4 million; Net earnings per share
and government with
(diluted) of 58 cents; and announced major awards were $4.9 billion.
solutions crafted to meet Due to CSC’s fiscal calendar, this year’s first quarter (a 13-week period) had one less week than last year’s
their specific challenges comparable quarter (a 14-week period). On a normalized basis, this year’s first quarter revenue growth would
and enable them to profit have been an estimated 3.4% higher than the as-reported growth of 5.1%.
from the advanced use CSC’s quarterly revenue growth was led by its European outsourcing and U.S. federal government
of technology. businesses. Growth in Europe was fueled by significant business awards announced over the last year. Favorable
currency movements also contributed to global commercial revenue.
Over the next 20 months, CSC’s federal pipeline of opportunities stands at approximately $33 billion.
With approximately
About $19 billion of the total is scheduled to be awarded during the current fiscal year, and this robust pipeline
90,000 employees, CSC
presents ample opportunity for continued award success.
provides innovative
CSC experienced another strong quarter of announced awards totaling approximately $4.9 billion. This
solutions for customers
amount was fairly evenly split between commercial and federal clients, and brings the total announced awards
around the world by
for the last twelve months to nearly $18 billion.
applying leading tech-
CSC’s European activities continued to benefit from strength in large IT services engagements during the
nologies and CSC’s own quarter, more than offsetting soft demand in discretionary spending for shorter-term consulting and systems
advanced capabilities. integration services, which continues to impact markets outside the United States.
These include systems Revenue derived from CSC’s U.S. federal government activities in the first quarter increased to $1.58 billion,
design and integration; up 5.0% from last year. CSC’s DoD-related revenue rose to $929.7 million, up 3.5% from last year. The
IT and business process quarter’s gain benefited from growth in support of military operations in the Middle East and commencement
of the Army’s Rapid Response Program late in last year’s first quarter. These and other program increases
outsourcing; applications
were somewhat offset by the completion of CSC’s U.S. Army aviation maintenance activities at Fort Rucker
software development;
and, as previously disclosed, the negative $23 million impact of a previously consolidated joint venture’s
Web and application
revenue no longer being reported because CSC is now a minority owner. Revenue derived from CSC’s civil
hosting; and management
agencies activities totaled $597.1 million, up 9.1% from the comparable quarter last year. The civil agencies
consulting.
quarterly growth was principally attributable to increased work from the U.S. Department of State, offset
by several program completions.
Headquartered in Global commercial revenue was $2.16 billion, up 5.2 % (approximately flat in constant currency) from the
El Segundo, California, f i rst qu a rter a year ago. CSC’s Eu ropean activi ties reported revenues of $940.1 mill i on , up 14.8% (approx i m a tely
CSC reported revenue 6% in constant currency), from last year. Significant business from major CSC customers, including Royal
of $14.9 billion for Mail Group, National Grid Transco, SAS and the UK National Health Service, have contributed to the growth
the 12 months ended in global commercial and European revenue. Non-European international revenue was up 4.2% (down
July 2, 2004. approximately 3% in constant currency) from the prior year, to $304.1 million.
1ST QUARTER FISCAL 2005 FI NA N C I A L HI G H L I G H TS
REVENU E S BY BUSINESS SEGMENT (unaudited)
Commercial U.S. Federal First Quarter
58% 42%
7/4/03
$ in millions, except per-share amounts 7/2/04
($ in millions)
U.S. Commercial – $911.6
25% 25%
$ 3,554.8
Revenues $ 3,736.4
Europe – $940.1
Other International – $304.1
16% $ 92.3
Net Income $ 110.4
25% U.S. DoD – $929.7
8% U.S. Civil Agencies – $597.1
1% $ 0.49
Diluted Earnings Per Share $ 0.58
Other U.S. Federal – $53.8
Total – $3,736.4

2. •
CSC’S SERVICES ENCOMPASS INVESTMENT DATA
Federal Aviation Administration (FAA)
SEVERAL BROAD AREAS NYSE: CSC
– CSC received a contract from the FAA
• Outsourcing – Involves operating all Recent Closing Price: 45.0 (8/20/04)
to modernize portions of the National
or a portion of a customer’s technology 52-Week Range: 36.70 – 47.55
Airspace System. The Traffic Flow
infrastructure. CSC also provides Shares Outstanding: 188.7 million
Modernization Contract will increase
business process outsourcing, which is Registered Shareholders: 11,593
the capacity of the nation’s airspace and
the management of a client’s non-core Institutional Ownership: 81%
reduce costs by en a bling airl i n e s , research
business functions. Average Daily Trading Volume:
organizations and the FAA to make
1st Quarter FY 2005 – 1,057,160
collaborative decisions that optimize
• IT & Professional Services – Market Cap: $8.5 billion
the flow of air traffic and minimize the
Designing, developing, implementing adverse effects of inclement weather.
and integrating complete information RESEARCH COVERAGE
•
systems, as well as advising clients on A.G. Edwards (Timothy Willi)
Sears – Sears, Roebuck and Co. selected
the strategic acquisition and utilization Bear, Stearns ( Jim Kissane)
CSC to provide state-of-the-art IT infra-
of IT. Bernstein (Rod Bourgeois)
structure support services including
CS First Boston (Dris Upitis)
desktop, server, voice and data network
RECENT ENGAGEMENTS INCLUDE: Deutsche Bank (Brandt Sakakeeny)
support, as well as services for systems
• Aon – CSC signed a contract to Goldman Sachs (Greg Gould)
supporting Sears-related Web sites and
provide Aon Corporation’s U.S. opera- J.P. Morgan Securities (Tien-Tsin Huang)
decision-support technology. The agree-
tions with IT infrastructure support Jefferies & Co. ( Joe Vafi)
ment will allow Sears to focus on its core
services. Under the agreement, CSC KeyBanc Capital Markets (Michael Keller)
retail and related services systems while
will operate and manage Aon’s Legg Mason (Bill Loomis)
providing improved capabilities coupled
U.S. telecommunications and data Lehman Brothers (Louis Miscioscia)
with the opportunity for significant
networks, desktop support, related Merrill Lynch (Jennifer Dugan)
operational and cost efficiencies.
help desk services and various IT Morgan Stanley (David Togut)
•
support functions. Prudential Securities (Bryan Keane)
U.S. Navy – CSC is one of a number
Robert W. Baird (Timothy Byrne)
of companies selected by the U.S. Navy
• AMP – Australian financial services Schwab SoundView ( Cindy Shaw)
to compete for work under the SeaPort
giant AMP Limited signed a new IT SG Cowen & Co. (Moshe Katri)
Enhanced contract for Engineering,
outsourcing contract extension with Smith Barney Citigroup (Pat Burton)
Technical and Programmatic Support.
CSC. Under the agreement, CSC will Standard & Poor’s ( Richard Stice)
The award represents an extension of
continue to provide desktop, network Thomas Weisel Partners (David Grossman)
activities CSC currently performs under
and mainframe maintenance and UBS Warburg (Adam Frisch)
previously awarded contracts. CSC
support, and selected mid-range services, Value Line (George Niemond)
will compete for task orders to provide
for AMP’s Australian operations. CSC’s a broad range of comprehensive pro-
relationship with AMP began in SHAREHOLDER SERVICES
fessional support services to the Navy’s
November 1993. For more information regarding CSC:
eight Warfare Center divisions.
• Shareholder services and literature
CSC REVENUE GROWTH FIRST THREE MONTHS FISCAL 2005 request line – (800)542-3070
FY 2000-2004* REVENUES BY BUSINESS SERVICE*
• Web site – www.csc.com
$ in billions
$ 16
• Registrar and transfer agent –
18%
Mellon Investor Services
41%
12 P.O. Box 3315
S. Hackensack, New Jersey 07606
38%
(800)676-0654 or (201)329-8660
8 www.MellonInvestor.com
3%
•
OUTSOURCING . . . . . . . . . . . . . . . . . . . . 44% CSC Investor Relations –
Global Commercial 41%
4 Bill Lackey
U.S. Federal Sector 3%
Director, Investor Relations
IT & PROFESSIONAL SERVICES . . . . . . . . 56%
(310)615-1700
Global Commercial 18%
U.S. Federal Sector 38%
FY00 FY01 FY02 FY03 FY04 Lisa Runge
* CSC’s fiscal year ends the Friday closest to March 31. * Based on CSC estimates. Manager, Investor Relations
(310)615-1680
All statements in this document that do not directly and exclusively relate to historical facts
constitute “forward-looking statements” within the meaning of the Private Securities Litigation
Email: InvestorRelations@csc.com
Reform Act of 1995. These statements represent the Company’s intentions, plans, expectations
and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside
• Headquarters
the Company’s control. These factors could cause actual results to differ materially from such
2100 East Grand Avenue
forward-looking statements. For a description of these factors, see the section titled “Forward-
El Segundo, California 90245, USA
Looking Statements” in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter
(310)615-0311
ended July 2, 2004.
Printed in U.S.A. WH# CC-1Q05