Computer Sciences Posts Loss

Computer Sciences Corp., the technology services company that last month decided against putting itself up for sale, reported a fiscal first-quarter loss because of costs to cut jobs.

The company posted a loss of $55.3 million, or 29 cents a share, compared with net income of $131.6 million, or 70 cents, a year earlier, when the company had a gain from an asset sale. Sales were little changed at $3.56 billion in the period ended June 30.

Chief Executive Van Honeycutt is trying to use the savings from 5,000 job cuts and a $2-billion stock buyback to boost the company’s share price after scrapping the potential sale of the El Segundo-based company.

“The restructuring isn’t kicking in yet,” said Cindy Shaw, a San Francisco-based analyst for Moors & Cabot who doesn’t own the shares. “Fundamentally, it looks like the core business is seeing limited improvement.”

Shares of Computer Sciences were little changed in extended trading. They dropped 89 cents to $51.50 on Tuesday and have fallen 7.8% since the company said it wouldn’t seek a buyer.

Sales in the quarter were in line with the $3.55-billion average estimate of 11 analysts in a Thomson Financial survey.

Computer Sciences forecast profit in the quarter ending Sept. 29 will be in the “high 60 cent to low 70 cent range” on sales of $3.5 billion to $3.6 billion. Analysts surveyed by Thomson expect 79 cents on sales of $3.66 billion.

The company also said it had established a special committee of directors to investigate whether stock options were backdated to benefit executives.