CSC (NYSE: CSC) today provided a preliminary and unaudited update for the fourth quarter and the full fiscal year 2012, ended March 30, 2012.
On December 27, 2011, the Company announced a material impairment of its net investment in the UK National Health Service (NHS) contract and at the same time, withdrew its guidance for its fiscal year 2012. Given the uncertainty surrounding the future of the NHS contract, the Company was not in a position to reasonably estimate fiscal 2012 financial performance.
On March 5, 2012, the Company announced that it had signed a non-binding letter of intent (LOI) with the NHS that provided a framework upon which the contract could continue. The parties targeted the completion of a binding interim agreement on or before March 31, 2012.
On April 4, 2012, the Company announced that the parties had not reached a binding agreement and that discussions are continuing.
With clarity around the NHS situation as it affects fiscal 2012 results, the Company is in a position to provide a more reasonable range of expected results in advance of the release of audited results in the mid-May timeframe.
The preliminary and unaudited Fiscal Year 2012 update is as follows:
|Fourth Quarter||Fiscal Year|
New Business Awards (billions)
|Earnings (loss) per Share|
|GAAP||~$(0.92) to ~$(0.96)||~$(27.27) to ~$(27.31)|
~$0.19 to ~$0.21
~$2.45 to ~$2.49
Free cash flow (millions)
~$225 to ~$275
~$50 to ~$100
Adjusted (non-GAAP) amounts exclude the estimated impact of the previously announced NHS charge, goodwill impairments, the US claims settlement, iSOFT dilution, and a fourth quarter restructuring charge (see attached supplemental data).
Because the Company has not issued its financial statements for the fourth quarter and fiscal year ended March 30, 2012, all financial results and other financial data described in this press release should be considered preliminary and are subject to change to reflect any necessary additional corrections or adjustments, or changes in accounting estimates that may be identified in connection with the Company’s issuance of such financial statements in the mid-May timeframe.