Thursday, 13 August 2015

Ground Hog Day ...... Or CSC 1 FY2016 Earnings Release



Many of our readers will have seen the film "Groundhog Day"
featuring Bill Murray and Andie McDowell.

A film in which cynical and unpleasant TV presentor keeps reliving 

the same day over and over again. Over time, this experience 

makes him a better person.


We are having our Groundhog Days with CSC Earnings Releases, 

but nothing is getting better in our opinion.

The latest Groundhog Day, on August 11, concerned Q1 FY 2016 

earnings. And we relived the past once more. EPS was $1.11, up 

8% and $0.10 over analysts' expectations. Operating Margin was up 

by 0.20%. Free Cash flow was $120 million for the quarter, up $50 

million, though one analyst said he thought this had more to do 

with CSC changing its definition of free cash flow, and less to do 

with superior operating performance.

But revenue was down 14.7% year on year, somd $50 million below expectations, and new business bookings were a lacklustre $3.2 billion. Mike Lawrie attributed this to "currency headwinds" and the fact that Q1 last fiscal year had an extra week, But do not be fooled, revenue is still declining at CSC, irrespective of Mr Lawrie's explanations.

Messrs Lawrie and Saleh did their usual job of talking up market changes,  next generation offerings, Cyber, Big Data, Mobility and so on. The only new news was the announcement that CSC is making two relatively small acquisitions to complement its portfolio of next generation offerings. Oh yes, and Mr Lawrie said he felt the US Federal Government market was in a phase of  "consolidation", by which we assumed that he meant that the plan is indeed to sell the new CSC US Public Sector Business. 

Once again, Wall Street's initial reaction was to buy CSC's story, as the share price jumped over 4%. We on the other hand remain very skeptical about the outlook for CSC.

98 comments:

Anonymous said...

Of course - if you play with the definitions and modify how you reflect numbers from quarter to quarter you can make it sound like anything you want it to sound like.

Noticeable, as always, were comments about cost take-outs and reductions in overhead - those of course being code for no raises for current employees and additional hiring of unskilled, low-cost labor.

There are some interesting numbers - percentage wise, about offshore, near shore, and low cost center personnel numbers - with projections for the remaining year going up another 5%. I think that 5% increase is all being done on the team I am on.

In the past 2 months we have added 13 new offshore resources and lost one US resource. Our mix is now 70+ offshore and less than 5 US resources. Not surprisingly, 75% of the client accepted work is being done by the handful of US resources - while the offshore miss deadlines, put out work that doesn't work, and pull in a paycheck - no doubt laughing all the way to the bank. But hey - they are cheaper (but I wouldn't think it would be "cheaper by the dozen".

Skeptical about the outlook for CSC? No skepticism about it. With numbers like this - we are destined to fail.

Anonymous said...

doublespeak: great results reports towards shareholders, bad results reports and no bonuses towards the employees.

Anonymous said...

http://www.theregister.co.uk/2015/08/12/csc_outsourcing_sales_growth_torpedoed/

Sums it all up well....

Anonymous said...

"The company is simply being raped by upper management for personal gain"

Anonymous said...

The only CSC financial metric which consistently increases is Mike Lawrie's millions.

Anonymous said...

I hate this company.

Anonymous said...

08:32.... Hate is such a STRONG word.

I think it describes the sentiment the a large percentage of the employees right on the button.

Anonymous said...

Leave if you hate the company, You are a free person, not a slave,

Anonymous said...

Easier said then done….it's kind of like the domestic abuse cycle…….don't blame the abused one, blame the abuser……….

Anonymous said...

I am a slave. I'm a slave to being able to buy food. I'm a slave to being able to pay my mortgage. I'm a slave to being able to care for my family.

Not a lot of options out there - especially if you are 60+ and needing just a couple more years before being able to retire.

Many of us long-term CSC employees are nearing the end of our careers and it's too late to start a new one. So, we'll grin and bear it - all the while hating.

Not hating what we do - but rather, hating who we do it for.

Anonymous said...

This company will never invest on people. No training, no raises = no clients. Walk out if you can NOW and while I'm a new position don't ever hire anybody that claims in his/her resume that they were managing people in CSC. You will feel vindicated when you show the door to the arrogant ignorants that clap while the boat sinks

Anonymous said...

I sympathise with anyone who feels stuck with CSC.

Courtesy of CSC I have slowly been de-skilled over the last 8-10 years. Yes I've had training, but never had a chance to put it to use, so that "investment" was literally money wasted. I'm a programmer/analyst, but my skills aren't marketable and in all honesty I've lost the desire put push myself because there's no reward for it. I don't live in an area where there's a great choice of alternate employers, and I don't want to up-sticks and move my family.

Each month CSC pays me what I call an attendance allowance. So long as they do I reckon I'll be attending the office.

Almost daily I get frustrated at those who are simply too disorganised or too incompetent to do their job; these being the brave new faces of CSC.

Anonymous said...

15:19... I know exactly how you feel. I like your view on things, especially the attendance allowance item.

At least you have been invested in by way of training. Since joining CSC almost 20 years ago, the only training I have gotten or been offered is the training online via CSC University or whatever they want to call it now. The fact that you did get training, and never given a chance to put that training to use is pure craziness. But it is the way things go with CSC.

How it is here on my team is: Work you like a slave, assign more work than what can be done in a normal work schedule, then ding you on your appraisal for not taking any training. Hard to do training on your own time when all of your spare time is used to make sure you meet work requirements.

I, like you, have honestly lost the desire after years of abuse. If the project gets completed on time, then it does. If it does not, their options are to lay me off, fire me, or promote me to manager. If they decide to lay me off or fire me, then I have bullets to fire back with. Projects assigned to onshore (US) resources in the past 4 years on our team have always met deadlines. Projects assigned to offshore resources in the past 4 years have met deadlines about 10% of the projects. Yet, those resources are still employed and many have even been promoted.

CSC no longer rewards good work ethic and good work product. Nor do they get rid of non-producers when they are offshore resources. However, if they can cut US resources and replace them with several offshore resources who continually prove that they can not, or will not, do the work, they will do it in a heartbeat. It's a sad state of affairs.


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Anonymous said...

Well, at least we know what the "i" in front of all the new business unit names stands for...

Anonymous said...

Meantime, elsewhere in the world, "The Enterprise Leader" reports:

"Computer Sciences Corporation (NYSE:CSC) has received a top Growth Style score from Zack’s Research. The growth score is based on company financials as well as the company’s prospects for future growth. The score is a result of analysis of various aspects of the Balance Sheet, Cash Flow Statement and Income Statement. Stocks that are given a high growth score tend to have the characteristics resulting in market outperformance."

Has the person from Zacks who wrote the report lifted his or her eyes from the spreadsheets recently? The only significant growth potential in CSC is in the remuneration of the top executives.

Anonymous said...

Just see who owns "CSC Commercial" in 12 months - HP, Atos and CGI have all said no . . . . . . . .

Anonymous said...
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Anonymous said...

Nobody will buy CSC commercial. they will sell FED because it has an actual client, but commercial assets value is worth much less than what numbers show. Only by splitting and leveraging the commercial side to around 2-30$ it may be sold. The longer they wait the harder will be to sell because CSC assets are losing value at light speed. My bet is that CSC will be attractive to speculators until the split and right after it won't survive basically because clients keep leaving and sales people are still selling brand new 80s Yugo cars to clients and disgruntled and disappointed clients spread the voice that we can't deliver new technologies.

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Busy Bee said...

From The Editor.
Cassandra welcomes an open debate and information sharing from all contributors, but this comments stream is getting close to being racist and therefore some comments have been deleted.
Would contributors please consider this blog is about CSC its business, its customers and its people. Most contributors do so and have given high quality views which may value, and long may they continue to provide comment.
Taking the debate into discussions about the perceived skill sets of various countries is neither helpful nor useful.

Anonymous said...

@ Busy Bee

How come, that "Anonymous20 August 2015 at 21:24" has NOT been deleted ! That is a truly racist remark - and IMHO the source of all further "racist like" remarks.

Busy Bee said...

Thank you for pointing out the one we missed. It is now scrubbed out.

Anonymous said...

All fair enough Casandra.

I would like to say, those outside offshore centres do support our colleague around the globe.

Though one does have to consider what jobs will our children have if taken by people outside USA/UK? Where even with an IT degree would they start?

I am not convinced people in these "cheaper" countries realise or consider the impact they have on us all.

Anonymous said...

22 Auguest 2015 @21:08.

The concerns you raise are very, very valid. The prospects of a good paying job in the IT field within the US/UK in the future is diminishing by leaps and bounds.

I have been asked in recent years by several young people whether I thought that going into this field was a good idea and whether it had a bright future. I could only caution them about doing so.

There were a few "select" roles that I tried to steer them towards if they chose to pursue a career in IT - one of them being cyber security. However, those that asked about programming paths - I had to tell to choose another path.

Anonymous said...

I agree... I was made redundant from CSC in the UK.. against my wishes and as an individual who always received 2 or 1 appraisal ratings. I was like a lamb to the slaughter to protect my manager and so on.

I would not recommend IT career in the UK. Is no future.

Anonymous said...

Well, I'm sure in the race to the bottom there will be some zero hours minimum wage IT jobs for CSC and others soon.

Its not a career path, because as soon as you are asking for more money than whatever third world country your employer also has people in, that's the end of it.

Don't imagine this is a CSC "problem" though, this is globalisation.

If you want a career path you need to find a job that needs boots on the ground - not something that can be sold by Amazon or done by workers on the other side of the world. Hence the surge in coffee shops and nail bars.

Trouble is, I make a lousy cup of coffee and can't paint nails for toffee.

Guess I'll have to keep my head down and keep writing code... but I won't be trying to recommend this job to my daughters.

Anonymous said...

>> Taking the debate into discussions about the perceived skill sets of various countries is neither helpful nor useful.

I would respectfully suggest that it is highly relevant if this blog is about "its business, its customers and its people". CSC is trying to build its operating model on the basis of large scale offshoring to low(er) cost centres. Thats fact, no? 75% targets are widespread across many offering groups. There are a spectrum of centers/countries within CSC and they vary in cost. Fact, no? I would've thought its entirely germane to discussions on the failing of CSC's strategy to discuss its obsession with absolute cost at the expense of relative quality, that there are centers at marginal additional cost who deliver better quality, but are overlooked by the demonic obsession with the bottom line rather than the customer sats.

Attrition, experience, culture, skill levels and cost vary around the globe. Correlating feedback from 15+ years involved with several different countries (good, bad and indifferent) with that of other colleagues in other companies to find the skill/cost sweet spot for dwindling customers might well be skill'ist, it is not racist.

Anonymous said...

We are in the calm before the storm period. Get ready for what will come.

Anonymous said...

So let's speculate. Who's buying Commercial after the split? My money is on HCL.

Anonymous said...

The fun begins....
http://seekingalpha.com/news/2754306-csc-merging-government-services-unit-with-peer-sra?uprof=82&dr=1#email_link

Anonymous said...

It's a new day...
In a late day news conference (that nobody told the employees about) CSC Management discussed that the being-spun-off company will be "joined" to SRA International... CSCGov will be joined to SRA to for a New Company. Management said something about how strong the new company will be, and something about 100M$ (it was a tiring 50 minute broadcast)
SRA just applied for (another) IPO (as of July 2015) with the target of 100M$.
The resulting company is supposed to have 19000 employees... SRA has 5600 (per the Nasdaq into on the IPO).
Meanwhile, there are SEC filings for executive members cashing in 1000's their stock options, buying CSC stock at HISTORIC prices ( 1 share of CSC for $14.50? )... this JUST before the public announcement that CSC was going to SPLIT, and coincidently, them announcing that there would be a $10 dividend for stock shares.
Aaaand, coincidentally again I'm sure, an email notice that went out in ... April 2015, limiting the amount of CSC stock that CSC would be matching in the company 401Ks.
Pay no attention to the man behind the curtain.

Anonymous said...

In the wake of the announcement CSC stock dropped to 60.51 (12:46PM). Apparently the news didn't excite the market toward a buyer's frenzy. The 03:29 posting is terrific in its unveiling of what lingers behind the shadows and sleight of hand maneuvers. Can we now expect that in the near future we'll see a liquidation of the various CSC contracts?

Anonymous said...

Sell off unlikely. If anything the blended (big/small) approach to contract acquisition will secure the company's stability going forward.

Anonymous said...

Whenever I look at the page and see that little fella at the top I always think the groundhog element is only half the story - its a pretty good representation of most of the company employees including me - keep your head down and prey you're not on anyone's dinner list ! Although at least he does not have to read corporate communications or go through an appraisal, think I want to be a groundhog.

Anonymous said...

Surprise, surprise.........

CSC Australia Profit drops 44 percent in difficult year.

CSC's troubled year has shown up in its Australian numbers, with annual revenue falling by $127.2 million.

In the latest available figures from the Australian Securities and Investments Commission, CSC Australia reported sales of $724 million for the year ending 31 March, a 15 percent drop from the previous year's $851.5 million.

Profit for CSC's local arm also plunged. The $38.7 million reported for its 2015 financial year was a 43.7 percent dip from last year's $68.7 million.



Read more: http://www.crn.com.au/News/408816,csc-australia-sales-plunge-127-million.aspx#ixzz3l8JH2xDL

Anonymous said...

Some good news http://www.marketwatch.com/story/csc-wins-100-million-cloud-contract-with-faa-2015-08-31

But probably too small to make a difference.

Anonymous said...

Some bad news.
CSC loses bid to save missile defense contract
Washington Technology (blog)-13 Aug 2015
CSC loses bid to save missile defense contract. There are two ways to read the Government Accountability Office decision denying Computer ...
CSC originally won this contract in 2010. It has only lasted five years. I wonder why?

Anonymous said...

Still.. next finance conference all....

Losing the missile defense contract was good as we could fire more people from CSC and also cut overtime payments (we do pay overtime now and again, naturally if we can get people to work unsociable hours for free - that is better) . So in actual fact - is a win win all round.

Analyst - wow thats great news!

Share price goes up by 2 cents.....

Anonymous said...

Follow the money>>>>>>>>>>>>
SRA's last reported revenue in 2010 was $1.6bln. It reports on its own web site that it has 5,600 staff of which 1,200 are ex-military.
SRA is owned by a private equity firm PEP that has $40bln of assets.

PEP, Private Equity Partners' recent investment history is somewhat checkered. To quote from Wikipedia:-

....In 2014, Providence lost its entire $460 million investment in Education Management Corporation after that company faced multiple investigations.
.....In 2014, Providence lost $400 million on the Dutch child-care group Estro
.....A $675 million stake in NexTag was written down to zero in 2014
..... In February 2015, Providence lost $800 million when Altegrity filed for bankruptcy after fraud accusations.

.....These poor investments caused Providence to deliver "dismal" returns. end of wiki quote

That last sentence and the ones on Altegrity, and Education Management Corporation say it all.
Bon chance to all CSC Fed empees!

Anonymous said...

CSC-GS and SRA are merging though... or so they want to tell us.

From where I sit though it looks more like the boards of CSC and SRA are busy loading gold bars into a lifeboat together.

I think it highly likely that the Good Ship CSC-GS-SRA is about to be boarded by pirates, whilst the officers flee in the lifeboat.

There's numerous things I've seen that suggest this.

Only a few more weeks until we find out!

Anonymous said...

UK - people now "leaving" via cough cough.. voluntary redundancy....... some good people sending bye bye emails....... how ironic the one who ruined lives Lawrie is going to leave and run the USA side of CSC leaving the bloodbath across Europe trying to hold on...

Anonymous said...

The wheez is CSC UK is recruiting more people than those leaving but all those coming in are grads / apprentices with no experience at all - clients getting very nervous

Anonymous said...

This is the case across all of CSC globally. Clients *should* be very worried!

Anonymous said...

Has anyone noticed there are almost no news about the spinoff, new contracts or future actions?

Anonymous said...

Or has anyone else noticed that after selling off thousands of shares EVERY OTHER week between May 2014 and July 2015 (16 months), once the $10.50/share dividend as part of the spinoff, there were only 2 selling periods by Mike Lawrie in almost 3 months, and none since the end of July.

Anonymous said...

So he's waiting to cash in after CSC is divided?

Anonymous said...

The Notes to outlook (internal csc mail) roll out seems to be going badly not only years behind now its in progress we are getting lots of messaged about disruption to Outlook users...

Sadly these messages are being emailed out so were a assuming poor outlook users have no idea what is wrong with there mail.

Anonymous said...

Change of plan - Again
Government contractor SRA Companies withdraws IPO; acquired by CSC in $1.4 billion deal
9/14/15

SRA Companies, an IT services contractor for US health, civil and national security agencies, withdrew its plans for an initial public offering on Monday. The company originally filed in July for an IPO that we estimated could have raised $300 million.

In late August, the company announced that it would be acquired by Computer Sciences Corporation (NYSE: CSC) and merged with the company's government services division, which is being spun off.

Another government contractor, Alion Science & Technology (ALON), had been on file for an IPO but was acquired by Veritas Capital in late July.

The Fairfax, VA-based company was founded in 1978 and booked $1.4 billion in sales for the 12 months ended March 31, 2015. It had not disclosed a proposed ticker or exchange. BofA Merrill Lynch and Citi were set to be the joint bookrunners on the deal.
http://www.renaissancecapital.com/news/government-contractor-sra-companies-withdraws-ipo%3b-acquired-by-csc-in-%241.4--35340.html

Anonymous said...

HP's split is looking pretty bad for some 30,000 employees; I wonder if CSC will follow a similar strategy?

http://www.cnbc.com/2015/09/15/up-to-30k-people-will-leave-hp-as-part-of-enterprise-spinoff.html

Anonymous said...

Is that really a "change of plan" again? Maybe for SRA, but not for CSC.

SRA was going to do an IPO to raise capital. Now that they are becoming a part of CSC-GS, no need for their IPO. So, it makes sense to cancel it.

Why go forward with an IPO for a company that really won't exist after October?

Not sure it made any difference on the CSC side.

Anonymous said...

Is a massive layoff within CSC after the split out of the question? Absolutely not, at least not in my opinion.

I'm thinking it may be a good way to go - at least for me. I'll take a layoff and severance, or if they offer, and early retirement. Not really early for me, just earlier than planned is all.

Anonymous said...

Its the same story all over the IT services sector really. Massive decline in revenue, mainly because of the end of "traditional" revenue streams means that the massive corporations that occupied this sector are taking a kicking.

I don't think there is a winning strategy being played by any of them - probably because there isn't a winning strategy.

However, from where I am sitting it looks very much like CSC has played a better hand than HP.

Blimey, did I really say that CSC did something better than someone else? I'm sure this madness will leave me just as soon as the next corporate propaganda email turns up.

Anonymous said...

US Federal Trade Commission has now approved CSC's planned acquisition of Fruition Partners.

In Glassdoor, Fruition Partners has an approval rating of 4.3 (out of 5) from its employees as a place to work and a lot of positive comments about the company and its CEO. By contrast, CSC's score is 2.6.

So we can expect quite a culture shock for the Fruition Partners employees as they join the ranks of CSC.

Anonymous said...

Maybe CSC will adopt some of the things that Fruition Partners does that makes them so loved and highly praised by their employees.

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA. Sometimes I just crack myself up. We all know that will never happen. CSC only cares about their Board of Directors and Senior Managers. They could not care less about their rank and file employees.

Anonymous said...

Across the waters on the Stateside word trickles from Business Development and Strategy announcing new contracts, extensions to existing contracts or recompete wins. The presence of SRA might refocus efforts toward competing for smaller contracts and not placing all of one's eggs, as it were, on grandiose offerings.
Lot of unknowns even in the presence of these announcements. Some commentators have noted that you might see CSC liquidate contracts. Will be interesting to see how this unfolds in the weeks and months down the road.

Anonymous said...

For the CSGov spinoff there is news, just not the commercial side.
CSGov and SRA are combining in November.

Anonymous said...

Time to go Amtrak!!! http://www.federaltimes.com/story/government/it/cloud/2015/09/16/csc-wins-faa-cloud-contract/32512355/

Anonymous said...

What does the market know that is not in the news?
http://newswatchinternational.com/news/company-shares-of-computer-sciences-corporation-nysecsc-drops-by-2-09.html
Computer Sciences Corporation (NYSE:CSC) has lost 2.09% during the past week and dropped 3.61% in the last 4 weeks. The shares are however, negative as compared to the S&P 500 for the past week with a loss of 8.79%. Computer Sciences Corporation (NYSE:CSC) has underperformed the index by 6.87% in the last 4 weeks. Investors should watch out for further signals and trade with caution.

Anonymous said...

Its all gone quiet over there . . . ..

Anonymous said...

From the article:

In the past six months, there is a change of -30.46% in the total insider ownership.

Anonymous said...

One week away from October and no official road map for the split has yet been released. Does anybody think this is the behaviour of a multinational company like this? Apparently they are all the same, VW lies and the responsible is not fired, just moved to another position...

Anonymous said...

I'm not sure that's significant really - its probably just the Mikey effect - he cashes a chunk of his allocated shares every month and probably does make up 30% or more of the share owning board members.

Just to put your zero or next to zero pay raise into perspective, he had one final fling of last years shares on June 8th - a sale of $9,800,966. I think that's the biggest single sell off I've ever seen.

You might think "that's him out of the game", but oh no the same day he was awarded the next chunk - 319,134 shares - roughly $20 million, followed 7 days later with an award of another quarter of a million.

Come 1st of October, his split dividend of $10 per share will be a cool $3 million in cash.

On top of that, his salary is $3.58 million.

Next time you see an email with his face on it, remember this, its why the photo is laughing at you.

Anonymous said...

401K and CSC stock taking a shellacking. Not encouraging at all. I know that these reflect in part market volatility but just seems that CSC can't move out of the low 60s. Wonder how this will mix out once we get into late October and November. Any thoughts?

Anonymous said...

It's a great time to by some CSC stock, while it's low, and get that $10.50/share dividend coming next month. It's free money after all.

While you can only have 10% of your 401K in CSC stock, you can always buy on the side. That's what I'm doing. At $62.00/share, the $10.50/share dividend reflects an almost 17% dividend payout. And no bank is giving 17%.

Anonymous said...

You'd think though that the $10 dividend would be driving the price up... but its not.

Curious.

Anonymous said...

Check what happened to chemours stocks after the spinoff from dupont

Anonymous said...

Yes, but that's a rather different kettle of fish - their problem is to do with a sharp downturn in their market caused by the slowing down of the Chinese economy.

What I'd expect to see would be a surge in share price pre-split as the money rushes to gain their $10, followed by a slump as they offload immediately. To see the regular pattern, look at the Vodafone/Verizon split Jan 2014.

We are 5 days away from October 1st and there's no surge.

I'd expect to see that surge even when the markets are falling, which they are. In fact, you'd expect it more as the city boys try to find a way of making money in a loosing game.

Probably tells you quite a bit when you can't get any interest when you are effectively offering a ridiculously high return on a short term investment.

Maybe Wall Street finally sees what the employees see!

Anonymous said...

Another colleague left today in UK... service delivery and well respected by the client.... he has 3 interviews lined up and one second interview with a competitor who is interested in his current "clients".

Over 50k to boot as well... with his shares which he is keeping to get the 10 dollar bribe and then will sell out.....

What a shame CSC UK is destroying itself from within.

My VR was turned down.. I will keep asking.. only a matter of time before I get a golden good bye :-)

UK calling said...

snr prof roles are no longer, you cant shift side ways into a new role, you have to re-apply , ebing downgraded.

Anonymous said...

Not sure what to think of this, other than to be sorry for employees in this company down under if this deal goes through. I suspect more obfuscation and diversion to compensate for growth targets continuing to come up short...

http://seekingalpha.com/news/2812986-csc-enters-talks-to-buy-australian-it-services-firm-for-300m?uprof=82&dr=1#email_link

Anonymous said...

Must say that caught me by surprise just now... I'd heard CSC Aus's revenues had nose dived last financial year - even more so than the rest. I guess this is a way of buying more business.... or simply taking out competition as UXC's main thrust seems to be small/medium SAP/Oracle/Servicenow contracts which is all that CSC consistently wins these days.

From what I can see, this isn't an acquisition on the face of it that's good value for CSC other than killing a competitor. The figures you can see show that it would take 30 years of profits to recover the CSC price paid. The company has no products or IP of its own, just 3000 employees who probably won't have a job fairly quickly.

This is a competitor kill.

Anonymous said...

Woo hoo we get to play rename the Lines of Service again! I wonder how much time and money was wasted thinking up this innovative sounding Apple rip-off?

Anonymous said...

is this site dead? Has lawrie and co made redundant all the contributors?

Does seem that way to me.

Now news from interweb rather than any relevant inside information...

Anonymous said...

Or like me - left for a 50% pay rise. Mind you - what I do find interesting is the number of my Ex-CSC colleagues who are joining LinkedIn.

I miss the atmosphere from 10 years ago, but that changed a lot in recent years. I feel sorry for the people I left behind.

All the best to them

Anonymous said...

Maybe there's nothing left to say !! Its hard to discuss and speculate when the information that comes from the top if so absurd. Instead of absorbing the content of any corporate communications we're all just flabbergasted that anyone could have the nerve to pretend nothings wrong. (speaking from UK perspective) I actually just laugh now when I read most of it. Anyone still working for the company has a good reason to do it ie near retirement or getting experience etc etc. The main thing is not to let it all get to you and make you ill, just get what you need and move on. I think one of the hardest things for people who are naturally committed is to flick the mental switch to "self preservation mode"

Anonymous said...

All our customers are leaving - And more and more of my best colleagues are either fired or leaving by own accord. - So with a bit of luck I'll be fired in about 6 months when the last customers are out. Suits me fine since I can't really see any future in this company. - Even with all the layoffs and new leaders.. They still have not fixed the most basic problems that are keeping us from being competitive.... Sounds good with the cloud stuff... only problem we don't really have a cloud system that is ready.. No paying customer = no investment = no cloud... The complete lack of investment is killing this company and setting us lightyears behind everybody else...

Anonymous said...

There is a Cloud - and it's been sold to some of the big accounts.... it might be a mess but it's bringing in money.
As for the lay offs... no communication and a lot of senior PM's are going... some already coming back as contractors....

Anonymous said...

I am 'impressed' by the glass door updates on CSC.

CSC has obviously improved since I left it last year!

The only thing I can thin of saying to current CSCers is enjoy the better CSC.

That might be why there are less comments on CSC on this forum - because it has improved so much.

Anonymous said...

It's possible that many (like me) have commented on here less since leaving CSC. I left of my own accord 18 months ago after failing to get redundancy only to be told I could have gone in a couple of months time. However of my remaining team of 5, 2 techies are now leaving at the end of the year with VR. Neither have a job lined up yet but one plans to go contracting (probably for the client) So redundancies are starting to happing in the UK. Don't know if any of the PMs are leaving. So it looks like I could have gone about 20 months later than I did with VR. However, I now have 20 months more experience in a new job but 20 months older, which at my age, (over 50) could count against me. However, I feel I've started a whole new career with a future rather than feeling like I was at the end of my working life in CSC. Previously I lived with the uncertainly of being made redundant for 6 years which could have put my career and private life on hold. However, I moved cities to be nearer London before moving jobs due to advance planning and now having to worried about having a large family to be up rooted. I know not everyone can do this.

I believe that many are hanging on for a payoff plus they feel so down trodden they don't believe they will find anything else.

I guess the remaining 3 techies in my old team don't want to leave yet and I know they have plenty of work but it must feel very uncertain again with the split coming up.

Anonymous said...

CSC has named two new non-executive directors, Peter Rutland and Robert Woods. Have you heard of them? No, nor me. But look at the skills they bring to CSC's boardroom.

Mr Rutland is a former investment banker at Goldman Sachs and is currently at CVC Capital Partners, an investment and private equity house. So we can see how his background fits in with Mike Lawrie's "sell the company and get me richer" strategy.

Mr Woods last role was CFO at Sungard according to the CSC press release. Where he left Sungard in 2012 it had annual revenues of US$4.2 billion and declining. So obviously he has had experience managing in a small declining company, which is where CSC is heading if it is not sold quickly.



Anonymous said...

Mr Woods was also at IBM... around the same time period as Mr. Lawrie. Another IBM'er brought into the fold to get rich off the backs of the employees that have, for the most part, gotten no raises to speak of for the past few years.

Interesting that they brought two people in, while only one was leaving. Must be getting brought aboard in twos so they can be split when the company splits. One stays with CSC, one goes to CSC/GS.

I wonder how many shares of unrestricted stock options they'll get off the bat - that they'll be able to get dividends on, although they have been with the company just a few short days. My guess will be in the 5 digits - so they can get a few free hundred thousands with the dividend.

Anonymous said...

So, it appears as though the company split apart has been pushed back to late November (20th I think it said).

I was wondering why there wasn't much information being posted about it on all of the financial boards.

Anonymous said...

This delay is another example of mismanagement. They under estimated the magnitude of the task, over promised, and under delivered. Sound familiar? Anyone on CSC projects lives with this incompetents daily.

Anonymous said...

Oh so curious...

Where can we get a deal like this... didn't someone mention "stock options" in the after-hours conference company split? (from https://finance.yahoo.com/q/it?s=CSC+Insider+Transactions )
$0 per share options? How does that have a value of "N/A"? I guess it's "Not worth Anything" until it's sold.

Oct 14, 2015 BARRAM DAVID J 25,900 Option Exercise at $0 per share. N/A

And John Lawrie has been busy...
Jul 27, 2015 600 Sale at $65 - $65.1 per share. 39,000
Jul 27, 2015 1 Automatic Sale at $65.09 per share. 65
Jul 27, 2015 601 Option Exercise at $27.36 per share. 16,443
Jul 17, 2015 4,000 Sale at $67.12 - $67.68 per share. 270,000
Jul 16, 2015 11 Automatic Sale at $67.80 per share. 745
Jul 16, 2015 3,989 Sale at $67.74 - $68.53 per share. 272,000
Jul 15, 2015 40,368 Option Exercise at $0 per share. N/A
Jul 15, 2015 18,490 Disposition (Non Open Market) at $67.90 per share. 1,255,471

Anonymous said...

David Barram is the member of the board of directors that recently resigned, and was replaced by Messrs Woods and Rutland.

The 25,900 shares of stock that he exercised on 10/14 is worth approximately $1.95M at today's price of $64.75 plus the $10.50/share dividend coming shortly.

Such a nice going away present. I am sure my severance pay will be almost as much when they finally lay me off after 20 years. I'll just be missing a few 0s at the end.

Anonymous said...

Errr CSC outsources datacentres to someone else?

http://finance.yahoo.com/news/qts-wins-contract-data-center-142900293.html

I thought that CSC cloud kit was being installed in AT&T datacentres... oh hang on that was an old press release.

Anyway, I'm sure that anyone working in or on CSC's own datacentres anywhere globally probably should be
brushing up on their CV's as the next amazing cost cutting exercise sounds like its just around the corner...

With datacentres now going, what has CSC got left? Apart from a board who are doing their best to fill their pockets before "offshoring" themselves in the Bahamas.

Anonymous said...

They are all at it: Top executives driven by sheer greed and by maximization of their bonuses and stock options irrespective of the consequences or the damage it can cause to the careers and lives of innocent employees and investors.

When will a Board of Directors ever have the courage to make an example of a CEO whose company is doing creative accounting? When will the SEC have the courage to institute personal criminal proceedings against CEOs and CFOs involved in such irregularities? Laphen would have paid a lot more attention to NHS revenue recognition if he thought he could end up in jail or have a fine big enough to destroy his lifestyle, instead of getting a massive payoff as his punishment.

Seeking Alpha reported today:

Buried within IBM's just-filed Q3 FY2015 10-Q: "In August 2015, IBM learned that the SEC is conducting an investigation relating to revenue recognition with respect to the accounting treatment of certain transactions in the U.S., U.K. and Ireland. The company is cooperating with the SEC in this matter."

Anonymous said...

Once again... (this is becoming so consistent it rivals death and taxes as certainties in life); Revenues are down, but Earnings Per Share beat targets (guess what executive bonuses are based on...)

"Computer Sciences (NYSE:CSC): FQ2 EPS of $1.26 beats by $0.12.Revenue of $2.71B (-12.0% Y/Y) misses by $80M."

Anonymous said...

So it seems this blog is dead? Any comment?

Anonymous said...

Lot to digest in the wake of the conference call. CSC received an extension from NYS to continue processing Medicaid claims. Every bit helps whether large or small. Will be interesting as time for separation approaches. My question is whether we'll see any efforts to sell off parts of CSC or is this a fixed presence for the time being?

Anonymous said...

Yes, I think the originators have left CSC and no longer have any interest - much like the future direction of the board.

Anonymous said...

http://www.theregister.co.uk/2015/11/02/netcracker_csc_dod_settlement/

CSC spokesperson - we are innocent but still paying over a million dollars in a fine...