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Gov Biz Boosts CSC

IT outsourcer Computer Sciences Corp. (CSC) (NYSE: CSC) reported a 5.1 percent increase in revenues, thanks largely to government business and European outsourcing.

Yesterday the company reported fiscal first-quarter 2005 earnings of 58 cents a share, or $110.4 million, on revenues of $3.7 billion. That's down from the prior quarter, when the company earned $1.01 a share, or $190.6 million, on revenues of $4 billion.

But the company did manage to improve on last year's results. Last year, it earned 49 cents a share, or $92.3 million, on revenues of $3.55 billion during its fiscal first quarter.

"Our performance is slightly ahead of plan," chairman and CEO Van Honeycutt said on yesterday's conference call.

"The performance of our European outsourcing activities and U.S. federal sector activities were the primary drivers of our quarterly revenue growth," he noted. "The company announced $4.9 billion in new contract awards, led by Sears Roebuck and Co. and the Federal Aviation Administration."

CSC has $2.5 billion booked so far for the current quarter, mostly from Zurich Financial Services and Aon Corp. (NYSE: AOC), Honeycutt said. "Our legacy in both the [U.S. Department of Defense] and civilian service agencies position us very well to continue."

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