CSC Profit Rises 21% as Government Sales Soar

Computer Sciences Corp. on Tuesday said second-quarter net income increased 21% as sales to U.S. intelligence agencies soared.

Net income rose to $130.5 million, or 68 cents a share, in the period ended Oct. 1 from $108.1 million, or 57 cents, a year earlier, the El Segundo-based company said. Sales increased 9.6% to $3.93 billion.

Federal agencies combating terrorism are increasing purchases of Computer Sciences’ services including consulting, computer network management and data processing. Sales to agencies, including the State Department and intelligence services, increased 32% to $664.2 million.

“With the Bush reelection behind us and the administration’s support for defense, CSC is well-positioned,” said David Garrity, an analyst with Caris & Co. in New York.

The company, which gets one-third of its sales from overseas, said the stronger euro accounted for about a third of its revenue increase.

Shares of Computer Sciences rose $1.17 to $51.30 in extended trading after earnings were announced. They fell 2 cents to $50.13 in regular trading on the New York Stock Exchange and have gained 23% this last year.

The company, the nation’s third largest offering computer services, forecast third-quarter earnings of 77 cents to 82 cents a share on sales growth of 8% to 10%.

Analysts expect Computer Sciences to earn 80 cents, the average estimate from a survey by Thomson First Call, on sales of $3.96 billion.

Computer Sciences earned $128.4 million, or 68 cents a share, on sales of $3.62 billion in last year’s third quarter.

The company was expected to report second-quarter earnings of 66 cents, the average estimate from Thomson First Call, on sales of $3.87 billion. Sales totaled $3.59 billion a year earlier.