CSC Relies On Outsourcing And Uncle Sam To Pay The BillsCSC Relies On Outsourcing And Uncle Sam To Pay The Bills

Fueled by its IT outsourcing business and government contracts, Computer Sciences Corp. (CSC-NYSE) last week reported $68.2 million in net income on revenue of $2.77 billion for its second quarter of fiscal year 2002, ended Sept. 28. While revenue was up more than 10% from $2.5 billion for the same quarter last year, profit fell sharply from the $109 million reported a year ago. Half of CSC's revenue comes from global outsourcing accounts; these are less profitable than consulting, which has slowed for CSC as well as for rivals such as IBM. Global outsourcing revenue from business clients grew to $2.10 billion, up more than 12% from $1.88 billion for the second quarter of fiscal 2001. Revenue from U.S. government outsourcing rose more than 6% to $660.6 million, mostly from a $5 billion, 10-year outsourcing contract from the National Security Agency.