Another CSC competitor turns in good results and healthy revenue growth.
Another competitor of CSC, outsourcer Cognizant Technologies, showed strong revenue growth, further demonstrating the fallacy that CSC's problems are all due to the market.
For the quarter to 30 June 2011, Cognizant beat Wall St estimates, announcing revenue growth of 34%, and an EPS increase of 21% compared to the same quarter of the previous year. This is the fifth consecutive quarter it has shown revenue growth in excess of 30%.
Cognizant's CEO said they continue to see stronger than anticipated demand for its increasing range of services across the industries it serves. So why does CSC keep seeing market weaknesses everywhere? Maybe it is because Cognizant has invested in new market and service offerings over the past few years, while CSC stopped investments and failed to act on changing markets and new opportunities.
Full details of Cognizant's results are on http://finance.yahoo.com/news/Cognizant-Technology-wscheats-516074810.html
Just to underline CSC's approach to investing in the future, "Graham" has just posted on WikiCSCleaks a comment that all training has been cancelled in CSC UK again just two months after the staff were given assurances that under no circumstances would this happen. It looks like CSC is still obsessed with this quarter's expense reduction opportunities, which does not bode well.
Let's see what Messrs Laphen and Mancuso have to say at CSC's Q1 FY2012 results conference on August 10.
It's maybe a good thing for CSC's directors that its 2011 Annual General meeting is being held two days before the Q1 results announcement rather than two days after!