Friday, 6 April 2012

CSC waffles through its analyst call on NHS progress

CSC held a conference call this week to update the analyst community on its “progress” in negotiations with the UK Government surrounding the failed NHS project.

Mike Lawrie may have replaced Mike Laphen as CEO, but his new broom has not had time to sweep  away all of CSC’s bad habits of the past. European President Guy Hains gave a masterclass in content-free waffling using intelligent-sounding buzz words to paint a rosy picture which does not seem supported by facts .

Mark Ballard of Computerweekly has written an excellent overview of the call and its implications, per the link below.

Some analysts raised questions about the financial situation, which CSC declined to answer.   Jason Kupferberg of Jeffries & Company asked if we would see some of the $1.5billion written-off in December 2011 coming back to profit in future quarters.  He was told the question was out-of-order, but it is what we are all interested in knowing.

A full transcript of the call, plus the analysts’ questions, can be found on SeekingAlpha

So we’ll just have to wait a bit longer to find out what is really going on in the NHS project.


Anonymous said...

Guy Hains was introduced on the concall as CSC's President of Healthcare. Does this mean he has been given yet another job after continual failure as Head of Europe?

I hope Mike Lawrie can see through Hains' "content-free waffling using intelligent-sounding buzz words". Laphen could not, and look what it has done for CSC Europe.

Anonymous said...

This concall was an embarrassment. CSC had nothing to say and would not answer the obvious question.

They urgently need a Head of Investor Relations who knows what he is doing. The last 15 months have seen a series of performance issues made worse by botched communications.

Anonymous said...

Re 15 April 2012 10:40 comment

This NHS analyst call was not the first time CSC Investor Relations messed up.

The Class Action lawsuits against CSC all stem from Laphen and Mancuso's unfounded optimism and unjustified promises of a great future made during analyst conferences and in press releases.

A good VP Investor Relations should never have allowed this to happen.