Falls Church-based Computer Sciences Corporation (CSC) (NYSE: CSC) reported financial results today for its second quarter of fiscal 2012 ended September 30, 2011.
The government contractor reported $3.97 billion in revenue for the quarter, a year-over-year increase of only one percent compared to the $3.94 billion in revenue in fiscal 2011. Analysts had estimated average revenues of $4.03 billion with a high estimate of $4.07 billion.
The company also reversed to a severe net loss of $2.88 Billion or $-18.56 per diluted and basic share. That was far from the net income of $184 million or $1.05 per dilluted share and $1.06 per basic share reported in the second quarter of fiscal 2010. Analysts had predicted average net earnings of $0.68 cents per share with a low estimate of $0.55 cents per share.
The loss was due to two considerable non-cash charges resulting from the CSC's annual goodwill impairment analysis and a previously disclosed claims settlement,
Michael W. Laphen, CSC Chairman, President and Chief Executive Officer stated, “As stated above, we have taken a non-cash goodwill impairment charge resulting from our annual test which is normally conducted in our second quarter. In our estimation, a key contributor to this charge is the fact that our stock price has been under pressure of late as the result of several business and market uncertainties. During the quarter our equitable settlement with the US government was finalized, resulting in a $1 billion incremental contract value, a cash payment to the Company of $277 million and a non-cash pre-tax charge of $269 million.”