It is well known that CSC needs to remove unprofitable old business, and restructure the entire company, while growing good new profitable business. These tasks are daunting and complex requiring a top notch management team to make them happen. A new management team is now in place, top notch or not only time will tell, yet as can be seen from recent posts and comments the restructuring seems to have to hit the buffers, while removal of some old businesses seems to be moving ahead (we will comment on this in another post). But new business seems to be a mystery. Where is the growth going to come from? Why is there not more information about it?
Looking at the company press releases over the last year, where you would expect to find significant new deals publicized, one is left with the impression of a few small deals, two medium sized deals, and several largish deals shared with many other suppliers with the revenue unquantified or only hinted at. There are of course small scale application and consulting deals only with contract renewals that would not necessarily be announced at the global level. But even so in the 9 pages of some 90 press releases there are as far as we can tell only 11 new deals announced. Note new means not associated with current contracts.
The quoted revenues from 6 of the deals is a life time total of $405mln or $151.5 annually. (note; 5 deals have no revenue given – Why?) For a $13bln or is it $15bln a year turnover company these results do not bode well as they represent just 1% of that turnover. Where is the growth and replacement for old business to come from?
We assume the industry analysts will have a lot of questions about CSC’s new business during the call next week.
Details of the deals analysed follow. The title line of each deal has a hot link to the press release web page for more information.
News Release -- June 19, 2013
Reduction in Medication Errors after Implementation
New Zealand, June 19, 2013 – The New Zealand Ministry of Health has awarded CSC a five-year, $17 million contract for the provision of its in-hospital prescribing and administration solution, MedChart, to all 20 District Health Boards (DHBs) across the country.
News Release -- January 21, 2013
FALLS CHURCH, Va., Jan. 21 – The U.S. Navy awarded CSC (NYSE: CSC) and six other companies an indefinite delivery/indefinite quantity (IDIQ) contract to provide acquisition and support services to the Space and Naval Warfare Systems Center (SSC) Atlantic. Awarded in the third quarter of CSC’s fiscal year 2013, the contract has a one-year base period and four one-year options, for an estimated total value of $900 million for all companies if all options are exercised.
News Release -- February 15, 2013
FALLS CHURCH, Va., Feb. 15 – The U.S. Coast Guard awarded CSC (NYSE: CSC) and 11 other companies a portion of its $11 billion contract to provide support services for the U.S. Department of Homeland Security (DHS).
News Release -- January 08, 2013
a Défense, Paris, France, January 8, 2013 - Crédit Agricole Group has signed an industrial and commercial agreement with CSC to provide a new service to the bank’s corporate clients that will enable them to manage their SEPA (Single Euro Payments Area) direct debits (SDD). This new service, MandateWAY, will be available in all the bank’s subsidiaries, including the networks of Caisses Régionales, LCL and Crédit Agricole CIB.
News Release -- December 20, 2012
FALLS CHURCH, Va., Dec. 20 – CSC (NYSE: CSC) announced today that it is one of 17 companies awarded blanket purchase agreements (BPA) to provide email as a service (EaaS) from the U.S. General Services Administration (GSA). The estimated total value of this contract is $2.5 billion for all companies.
CSC was awarded two GSA EaaS BPAs: one based on a Microsoft Exchange solution and the other employing a Google solution. These BPAs, awarded during CSC’s second quarter of fiscal year 2013, have a two-year base period and three option years. The BPAs were awarded under the GSA Schedule 70 contract.
CSC Wins $54 Million Task Order to Conduct Background Investigations for Immigration and Customs Enforcement
News Release -- October 26, 2012
FALLS CHURCH, Va., Oct. 26 – CSC (NYSE: CSC) announced today that the U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility has awarded the company a task order to conduct employee and contractor background investigations. The task order, signed in the second quarter of CSC fiscal year 2013, has a one-year base period and four option years, bringing the estimated total value to $54 million. This task order was awarded under the U.S. General Services Administration Schedule 738X contract that CSC won in 2002.
News Release -- November 12, 2012
FALLS CHURCH, Va., Nov. 12 – The United States Army has awarded CSC (NYSE: CSC) a firm fixed price (FFP) contract modification to upgrade a simulator-based flight and related aviation training device for the U.S. Army Aviation Center of Excellence at Ft. Rucker, Ala. Awarded in the second quarter of CSC’s 2013 fiscal year, the contract modification has a six-month base period and ten one-year options, for a total value of $34 million. The contract modifications were awarded under the Flight School XXI indefinite-delivery requirements contract, which CSC won in 2003.
News Release -- September 12, 2012
FALLS CHURCH, Va., Sept. 12 – The U.S. Army Communications-Electronics Command (CECOM) has awarded CSC (NYSE: CSC) a task order to provide worldwide logistics support. Awarded in the fourth quarter of CSC’s fiscal year 2012, the task order has an estimated two-year total value of $220 million and falls under the Strategic Services Sourcing (S3) contract vehicle, originally awarded to CSC in 2006.
News Release -- August 16, 2012
FALLS CHURCH, Va., Aug. 16 – CSC (NYSE: CSC) announced today that U.S. Southern Command (USSOUTHCOM) has awarded the company a task order to provide information management support. Awarded as part of the Information Technology Enterprise Solutions Services (ITES-2S) indefinite delivery/indefinite quantity (ID/IQ) contract in the first quarter of CSC’s fiscal year 2013, the task order has a one-year base period and two one-year options for a total value of $74 million.
News Release -- July 19, 2012
FALLS CHURCH, Va., July 19 – CSC (NYSE: CSC) has signed a contract with the Health and Social Care Information Centre (HSCIC) to deliver SystmOne data extracts as part of the General Practice Extraction Service (GPES).
The six-year contract, which is worth up to £4.6 million and was signed in the first quarter of CSC fiscal year 2013, will allow specific data about patients, such as the prevalence of disease and treatment given, to be extracted from patient records, to help
News Release -- July 16, 2012
Company Adopts Proven As-a-Service Offerings for Global IT Transformation Program
FALLS CHURCH, Va., July 16 – CSC (NYSE: CSC), a global leader in technology solutions and services, announced today that it has signed a contract with Alstom (Euronext: ALO), a world leader in power generation, electricity transmission and rail transport infrastructures, to provide information technology (IT) infrastructure managed services. The contract, signed in the first quarter of CSC fiscal year 2013, has a five-year base term with services expected to commence in Fall 2012. The agreement is subject to regulatory and other approvals.
CSC is tasked with transforming Alstom’s global datacenter operations to increase innovation, enhance service quality and reduce ongoing costs. By leveraging its BizCloud® and Storage as a Service infrastructure solutions, CSC will provide Alstom with datacenter services, including server and storage consolidation and centralization using a mix of existing Alstom and CSC datacenters.
If any readers know of deals in the last year that have been missed from this list please add them as a comment and we will insert in the body of this post to ensure completeness.