Computer Sciences Corp CSC
Q3 2013 Earnings Call Transcript

Transcript Call Date 02/05/2013

Operator: Good day everyone and welcome to the CSC’s Third Quarter Fiscal Year 2013 Earnings Conference Call. Today's call is being recorded.

For opening remarks and introductions, I’d like to turn the conference over to Mr. Steve Virostek. Please go ahead, Steve.

Steve Virostek - Director, IR: Thank you, operator and good morning everyone. I’m pleased you have joined us for CSC's third quarter 2013 earnings call and webcast.

On the call with me today are Mike Lawrie, our Chief Executive Officer; and Paul Saleh, our Chief Financial Officer. As usual, this call is being webcast at and we've also posted slides to our website to accompany our discussion.

On Slide 2, you'll see that some matters which we discussed today will be forward-looking. Please keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those expressed on this call. A discussion of our risks and uncertainties is included in our Form 10-K, 10-Q, and other SEC filings.

On Slide 3, we acknowledge that CSC's presentation includes certain non-GAAP financial measures, which we believe provide useful information to our investors. In accordance with SEC rules, we have provided a reconciliation of these metrics to the respective and most directly comparable GAAP metrics. These reconciliations can be found in today's earnings release and in an appendix to our web slides. Both documents are available at the Investor Relations' section of the

I'd like to remind our listeners that CSC assumes no obligation to update the information presented on the conference call, except of course as required by law. Listeners should also be aware that CSC's third quarter results reflect the divestiture of our credit services business and certain businesses in Italy. The net impact of these transactions is reflected in EPS from discontinued operations.

Moving to Slide 4, I'm pleased to hand the call back to Mike Lawrie.

Mike Lawrie - President and Chief Executive Officer: Okay. Steve, thank you. Hello to everyone on the call today. Thank you for joining us and your continued interest in CSC. As sort of in my practice I've got some key messages I'd like to leave you with today, I'll develop those four messages a little bit then turn this over to Paul and then as usual we'll have an opportunity to respond to some of your questions.

So, the four key messages are one our turnaround is on track and we have made reasonable progress in the third quarter and through the third quarter. Second key message here is that our operational performance in the third quarter was primarily driven by our cost takeout work and as a result of our growing confidence in that cost takeout work this really allows us to raise our EPS target range for the balance of our fiscal year.

The third message is that we are rebalancing our asset portfolio with divestitures of non-core businesses. Then fourth, we are following through on our cash flow priorities by returning cash to our shareholders and reinvesting in the business for growth down the road. So, let me just develop each of those key messages a little bit here. As I said, the turnaround is on track. We're making progress towards our new operating model, which as you recall is defined by distinct offerings, select industry markets and major geographies.

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