BusinessWire

DXC Technology Reports Second Quarter Fiscal 2021 Results

Quarterly revenue of $4.55 billion

New bookings of $4.9 billion and book-to bill ratio of 1.1x

Diluted EPS was $(0.96) and non-GAAP diluted EPS was $0.64

Cash flow from operations of $472 million and adjusted free cash flow of $237 million

TYSONS, Va.--(BUSINESS WIRE)--DXC Technology (NYSE: DXC) today reported results for the second quarter of fiscal year 2021. Revenue of $4.55 billion and non-GAAP diluted EPS of $0.64 exceeded the top end of our guidance.


“We delivered strong second quarter results as the ‘new DXC’, exceeding our revenue and non-GAAP diluted EPS targets. We also improved margins sequentially, and achieved a book-to-bill of 1.1x. We are making good progress on the three key areas of our transformation journey, which are: focus on customers, optimize costs, and seize the market,” said Mike Salvino, DXC president and chief executive officer.

“We recently closed the sale of our U.S. State and Local Health and Human Services business for $5.0 billion and paid down $3.5 billion of debt, strengthening our balance sheet. We are also on track to close the sale of our Healthcare Provider Software business to Dedalus by the end of this fiscal year. I want to thank our people for driving the momentum and helping us deliver our strong financial results this quarter and their commitment to delivering for our customers.”

Financial Highlights - Second Quarter Fiscal 2021

  • Revenue in the second quarter was $4,554 million.
  • Net loss was $246 million for the second quarter including pre-tax special items of $265 million in restructuring costs, $101 million in transaction, separation, and integration-related costs, and $152 million in amortization of acquired intangibles.
  • Non-GAAP net income was $161 million, excluding those special items, net of tax.
  • Diluted earnings per share was $(0.96) in the second quarter; non-GAAP diluted earnings per share was $0.64.
  • Net cash provided by operating activities was $472 million in the second quarter.
  • Adjusted free cash flow was $237 million in the second quarter.

Financial Information by Segment

Global Business Services (GBS)

  • GBS bookings for the quarter totaled $2.4 billion for a book-to-bill ratio of 1.1x.
  • GBS revenue was $2,242 million in the quarter. GBS revenue decreased 1.9% year-over-year.
  • In constant currency, GBS revenues decreased 3.4% year-over-year and increased 0.5% sequentially.
  • GBS profit margin in the quarter was 14.1%, an increase of 4.2% vs. the prior quarter. Year-over-year, margins were down 1.6%, reflecting prior terminations and price-downs along with customer settlements that were actioned in the quarter, offset by the timing of cost take out initiatives.

Global Infrastructure Services (GIS)

  • GIS bookings for the quarter was $2.5 billion for a book-to-bill ratio of 1.1x.
  • GIS revenue was $2,312 million in the quarter. GIS revenues decreased 9.9% year-over-year.
  • In constant currency, GIS revenues decreased 11.6% year-over-year and decreased 4.0% sequentially.
  • GIS profit margin in the quarter was 1.6%, an increase of 0.6% vs. the prior quarter. Year-over-year, margins were down 7.9% due to the impact of prior terminations and price-downs along with customer settlements that were actioned in the quarter.

Earnings

  • EBIT and adjusted EBIT in the quarter were $(235) million and $283 million, respectively. EBIT and adjusted EBIT margins were (5.2)% and 6.2%, respectively. Adjusted EBIT margin in the quarter was better than anticipated, benefiting from our cost optimization initiatives.
  • Diluted EPS and non-GAAP diluted EPS were $(0.96) and $0.64, respectively, in the quarter. Diluted EPS and non-GAAP diluted EPS were impacted by a lower than expected tax rate of 24.1%.

Cash Flow

  • Net cash provided by operating activities was $472 million in the second quarter and adjusted free cash flow was $237 million. Operating cash flow and adjusted free cash flow benefited from working capital management. Adjusted free cash flow also benefited from lower capital expenditures during the quarter.

Earnings Conference Call and Webcast

DXC Technology senior management will host a conference call and webcast to discuss these results today at 4:45 p.m. EST. The dial-in number for domestic callers is 800-367-2403. Callers who reside outside of the United States should dial +1-334-777-6978. The passcode for all participants is 8144357. The webcast audio and any presentation slides will be available on DXC Technology’s Investor Relations website.

A replay of the conference call will be available from approximately two hours after the conclusion of the call until November 12, 2020. The replay passcode is 8144357.

About DXC Technology

DXC Technology (NYSE: DXC) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world’s largest companies trust DXC to deploy our enterprise technology stack to deliver new levels of performance, competitiveness and customer experiences. Learn more about the DXC story and our focus on people, customers and operational execution at www.dxc.technology.

Forward-Looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the recent outbreak of the novel coronavirus (“COVID-19”) pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled “Risk Factors” in DXC's Annual Report on Form 10-K for the fiscal year ended March 31, 2020, and any updating information in subsequent SEC filings including DXC's upcoming Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020. No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events except as required by law.

About Non-GAAP Measures

In an effort to provide investors with supplemental financial information, in addition to the preliminary and unaudited financial information presented on a GAAP basis, we have also disclosed in this press release preliminary non-GAAP information including: constant currency, earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted EBIT margin, adjusted free cash flow, and non-GAAP results including non-GAAP income from continuing operations before taxes, non-GAAP income from continuing operations and non-GAAP EPS from continuing operations.

We present these non-GAAP financial measures of performance which are derived from the statements of operations of DXC. These non-GAAP financial measures include earnings before interest and taxes ("EBIT"), EBIT margin, adjusted EBIT, adjusted EBIT margin, non-GAAP income before income taxes, non-GAAP net income, non-GAAP EPS and adjusted free cash flow.

We present these non-GAAP financial measures to provide investors with meaningful supplemental financial information, in addition to the financial information presented on a GAAP basis. Non-GAAP financial measures exclude certain items from GAAP results which DXC management believes are not indicative of core operating performance. DXC management believes these non-GAAP measures allow investors to better understand the financial performance of DXC exclusive of the impacts of corporate-wide strategic decisions. DXC management believes that adjusting for these items provides investors with additional measures to evaluate the financial performance of our core business operations on a comparable basis from period to period. DXC management believes the non-GAAP measures provided are also considered important measures by financial analysts covering DXC, as equity research analysts continue to publish estimates and research notes based on our non-GAAP commentary, including our guidance around diluted non-GAAP EPS targets.

Non-GAAP financial measures exclude certain items from GAAP results which DXC management believes are not indicative of operating performance such as the amortization of acquired intangible assets and transaction, separation and integration-related costs.

Incremental amortization of intangible assets acquired through business combinations may result in a significant difference in period over period amortization expense on a GAAP basis. We exclude amortization of certain acquired intangible assets as these non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Although DXC management excludes amortization of acquired intangible assets, primarily customer related intangible assets from its non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and support revenue generation. Any future transactions may result in a change to the acquired intangible asset balances and associated amortization expense.

There are limitations to the use of the non-GAAP financial measures presented in this report. One of the limitations is that they do not reflect complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Additionally, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes between companies.

Selected references are made on a “constant currency basis” so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates, thereby providing comparisons of operating performance from period to period. Financial results on a “constant currency basis” are non-GAAP measures calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This approach is used for all results where the functional currency is not the U.S. dollar.

Condensed Consolidated Statements of Operations

(preliminary and unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

(in millions, except per-share amounts)

 

September 30,
2020

 

September 30,
2019

 

September 30,
2020

 

September 30,
2019

 

 

 

 

 

 

 

 

 

Revenues

 

$

4,554

 

 

$

4,851

 

 

$

9,056

 

 

$

9,741

 

 

 

 

 

 

 

 

 

 

Costs of services

 

3,563

 

 

3,679

 

 

7,192

 

 

7,301

 

Selling, general and administrative

 

539

 

 

489

 

 

1,078

 

 

996

 

Depreciation and amortization

 

525

 

 

467

 

 

1,017

 

 

937

 

Goodwill impairment losses

 

 

 

2,887

 

 

 

 

2,887

 

Restructuring costs

 

265

 

 

32

 

 

337

 

 

174

 

Interest expense

 

96

 

 

104

 

 

202

 

 

195

 

Interest income

 

(25

)

 

(67

)

 

(48

)

 

(97

)

Gain on arbitration award

 

 

 

(632

)

 

 

 

(632

)

Other income, net

 

(103

)

 

(109

)

 

(191

)

 

(227

)

Total costs and expenses

 

4,860

 

 

6,850

 

 

9,587

 

 

11,534

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(306

)

 

(1,999

)

 

(531

)

 

(1,793

)

Income tax (benefit) expense

 

(60

)

 

116

 

 

(86

)

 

154

 

Net loss

 

(246

)

 

(2,115

)

 

(445

)

 

(1,947

)

Less: net (loss) income attributable to non-controlling interest, net of tax

 

(2

)

 

4

 

 

4

 

 

9

 

Net loss attributable to DXC common stockholders

 

$

(244

)

 

$

(2,119

)

 

$

(449

)

 

$

(1,956

)

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.96

)

 

$

(8.19

)

 

$

(1.77

)

 

$

(7.44

)

Diluted

 

$

(0.96

)

 

$

(8.19

)

 

$

(1.77

)

 

$

(7.44

)

 

 

 

 

 

 

 

 

 

Cash dividend per common share

 

$

 

 

$

0.21

 

 

$

 

 

$

0.42

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding for:

 

 

 

 

 

 

 

 

Basic EPS

 

254.13

 

 

258.71

 

 

253.88

 

 

262.83

 

Diluted EPS

 

254.13

 

 

258.71

 

 

253.88

 

 

262.83

 

Selected Consolidated Balance Sheet Data

(preliminary and unaudited)

 

 

 

As of

(in millions)

 

September 30, 2020

 

March 31, 2020

Assets

 

 

 

 

Cash and cash equivalents

 

$

3,079

 

 

$

3,679

 

Receivables, net

 

4,194

 

 

4,392

 

Prepaid expenses

 

604

 

 

646

 

Other current assets

 

335

 

 

270

 

Assets held for sale

 

125

 

 

 

Total current assets

 

8,337

 

 

8,987

 

 

 

 

 

 

Intangible assets, net

 

4,146

 

 

5,731

 

Operating right-of-use assets, net

 

1,555

 

 

1,428

 

Goodwill

 

725

 

 

2,017

 

Deferred income taxes, net

 

292

 

 

265

 

Property and equipment, net

 

3,417

 

 

3,547

 

Other assets

 

4,360

 

 

4,031

 

Assets held for sale - non-current

 

2,838

 

 

 

Total Assets

 

$

25,670

 

 

$

26,006

 

 

 

 

 

 

Liabilities

 

 

 

 

Short-term debt and current maturities of long-term debt

 

$

1,622

 

 

$

1,276

 

Accounts payable

 

1,345

 

 

1,598

 

Accrued payroll and related costs

 

756

 

 

630

 

Current operating lease liabilities

 

461

 

 

482

 

Accrued expenses and other current liabilities

 

3,203

 

 

2,801

 

Deferred revenue and advance contract payments

 

974

 

 

1,021

 

Income taxes payable

 

111

 

 

87

 

Liabilities related to assets held for sale

 

184

 

 

 

Total current liabilities

 

8,656

 

 

7,895

 

 

 

 

 

 

Long-term debt, net of current maturities

 

8,046

 

 

8,672

 

Non-current deferred revenue

 

697

 

 

735

 

Non-current operating lease liabilities

 

1,192

 

 

1,063

 

Non-current income tax liabilities and deferred tax liabilities

 

917

 

 

1,157

 

Other long-term liabilities

 

1,325

 

 

1,355

 

Liabilities related to assets held for sale - non-current

 

86

 

 

 

Total Liabilities

 

20,919

 

 

20,877

 

 

 

 

 

 

Total Equity

 

4,751

 

 

5,129

 

 

 

 

 

 

Total Liabilities and Equity

 

$

25,670

 

 

$

26,006

 

Condensed Consolidated Statements of Cash Flows

(preliminary and unaudited)

 

 

 

Six Months Ended

(in millions)

 

September 30,
2020

 

September 30,
2019

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(445

)

 

$

(1,947

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

1,025

 

 

946

 

Goodwill impairment losses

 

 

 

2,887

 

Operating right-of-use expense

 

307

 

 

340

 

Pension & other post-employment benefits, actuarial & settlement losses

 

2

 

 

 

Share-based compensation

 

36

 

 

48

 

Loss (gain) on dispositions

 

14

 

 

(4

)

Provision for losses on accounts receivable

 

45

 

 

 

Unrealized foreign currency exchange gain

 

(43

)

 

(50

)

Impairment losses and contract write-offs

 

42

 

 

11

 

Other non-cash charges, net

 

(5

)

 

(9

)

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

 

 

 

 

Decrease in assets

 

57

 

 

167

 

Decrease in operating lease liability

 

(307

)

 

(340

)

Decrease in other liabilities

 

(137

)

 

(464

)

Net cash provided by operating activities

 

591

 

 

1,585

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(156

)

 

(192

)

Payments for transition and transformation contract costs

 

(136

)

 

(158

)

Software purchased and developed

 

(102

)

 

(126

)

Payments for acquisitions, net of cash acquired

 

(10

)

 

(1,921

)

Cash collections related to deferred purchase price receivable

 

159

 

 

371

 

Proceeds from sale of assets

 

8

 

 

40

 

Short-term investing

 

 

 

(75

)

Other investing activities, net

 

3

 

 

14

 

Net cash used in investing activities

 

(234

)

 

(2,047

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Borrowings of commercial paper

 

830

 

 

2,879

 

Repayments of commercial paper

 

(508

)

 

(2,866

)

Borrowings under lines of credit

 

2,500

 

 

 

Repayment of borrowings under lines of credit

 

(2,750

)

 

 

Borrowings on long-term debt, net of discount

 

993

 

 

2,198

 

Principal payments on long-term debt

 

(1,476

)

 

(519

)

Payments on finance leases and borrowings for asset financing

 

(487

)

 

(421

)

Proceeds from stock options and other common stock transactions

 

 

 

10

 

Taxes paid related to net share settlements of share-based compensation awards

 

(3

)

 

(12

)

Repurchase of common stock and advance payment for accelerated share repurchase

 

 

 

(650

)

Dividend payments

 

(53

)

 

(107

)

Other financing activities, net

 

(9

)

 

(32

)

Net cash (used in) provided by financing activities

 

(963

)

 

480

 

Effect of exchange rate changes on cash and cash equivalents

 

9

 

 

(37

)

Net decrease in cash and cash equivalents including cash classified within current assets held for sale

 

(597

)

 

(19

)

Less: cash classified within current assets held for sale

 

(3

)

 

 

Net decrease in cash and cash equivalents

 

(600

)

 

(19

)

Cash and cash equivalents at beginning of year

 

3,679

 

 

2,899

 

Cash and cash equivalents at end of period

 

$

3,079

 

 

$

2,880

 

Segment Results

The following table summarizes segment revenue for the second quarter and first six months of fiscal 2021 and 2020:

Segment Revenue

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(in millions)

 

September 30, 2020

 

September 30, 2019

 

% Change

 

% Change in
Constant Currency

Global Business Services

 

$

2,242

 

 

$

2,285

 

 

(1.9)

%

 

(3.4)%

Global Infrastructure Services

 

2,312

 

 

2,566

 

 

(9.9)

%

 

(11.6)%

Total Revenues

 

$

4,554

 

 

$

4,851

 

 

(6.1)

%

 

(7.7)%

 

 

Six Months Ended

(in millions)

 

September 30, 2020

 

September 30, 2019

 

% Change

 

% Change in
Constant Currency

Global Business Services

 

$

4,416

 

 

$

4,444

 

 

(0.6)

%

 

(0.6)%

Global Infrastructure Services

 

4,640

 

 

5,297

 

 

(12.4)

%

 

(12.0)%

Total Revenues

 

$

9,056

 

 

$

9,741

 

 

(7.0)

%

 

(6.8)%

We define segment profit as segment revenues less costs of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges). The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated costs include certain corporate function costs, stock-based compensation expense, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation and integration-related costs, and amortization of acquired intangible assets.

Segment Profit

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

(in millions)

 

September 30,
2020

 

September 30,
2019

 

September 30,
2020

 

September 30,
2019

Profit

 

 

 

 

 

 

 

 

GBS profit

 

$

317

 

 

$

359

 

 

$

532

 

 

$

725

 

GIS profit

 

36

 

 

243

 

 

59

 

 

583

 

All other loss

 

(70

)

 

(73

)

 

(118

)

 

(127

)

Interest income

 

25

 

 

67

 

 

48

 

 

97

 

Interest expense

 

(96

)

 

(104

)

 

(202

)

 

(195

)

Restructuring costs

 

(265

)

 

(32

)

 

(337

)

 

(174

)

Transaction, separation and integration-related costs

 

(101

)

 

(53

)

 

(211

)

 

(158

)

Amortization of acquired intangible assets

 

(152

)

 

(151

)

 

(300

)

 

(289

)

Pension and OPEB actuarial and settlement losses

 

 

 

 

 

(2

)

 

 

Goodwill impairment losses

 

 

 

(2,887

)

 

 

 

(2,887

)

Gain on arbitration award

 

 

 

632

 

 

 

 

632

 

Loss before income taxes

 

$

(306

)

 

$

(1,999

)

 

$

(531

)

 

$

(1,793

)

 

 

 

 

 

 

 

 

 

Segment profit margins

 

 

 

 

 

 

 

 

GBS

 

14.1

%

 

15.7

%

 

12.0

%

 

16.3

%

GIS

 

1.6

%

 

9.5

%

 

1.3

%

 

11.0

%

Reconciliation of Non-GAAP Financial Measures

Our non-GAAP adjustments include:

  • Restructuring costs - reflects costs, net of reversals, related to workforce optimization and real estate charges.
  • Transaction, separation and integration-related (“TSI”) costs - reflects costs to execute on strategic alternatives, costs related to integration, planning, financing and advisory fees associated with the HPES Merger and other acquisitions and costs related to the separation of USPS and other divestitures.(1)
  • Amortization of acquired intangible assets - reflects amortization of intangible assets acquired through business combinations.
  • Pension and OPEB actuarial and settlement gains and losses - reflects pension and OPEB actuarial and settlement gains and losses.
  • Goodwill impairment losses - reflects impairment losses on goodwill.
  • Gain on arbitration award - reflects a gain related to the HPES merger arbitration award.
  • Tax adjustment - for fiscal 2021 periods, reflects the impact of tax entries related to prior restructuring charges and an adjustment to the tax expense relating to USPS, and for fiscal 2020 periods, reflects the impact of tax entries related to prior restructuring charges. Income tax expense of non-GAAP adjustments is computed by applying the jurisdictional tax rate to the pre-tax adjustments on a jurisdictional basis.
 

(1)

 

 

TSI costs for all periods presented include fees and other expenses associated with legal, accounting, consulting, due diligence, investment banking advisory, and other services, as well as financing fees, retention incentives, and resolution of transaction related claims in connection with, or resulting from, exploring or executing potential acquisitions, dispositions and strategic alternatives, whether or not announced or consummated.

EBIT and Adjusted EBIT

A reconciliation of net loss to EBIT and adjusted EBIT is as follows:

 

 

Three Months Ended

 

Six Months Ended

(in millions)

 

September 30,
2020

 

September 30,
2019

 

September 30,
2020

 

September 30,
2019

Net loss

 

$

(246

)

 

$

(2,115

)

 

$

(445

)

 

$

(1,947

)

Income tax (benefit) expense

 

(60

)

 

116

 

 

(86

)

 

154

 

Interest income

 

(25

)

 

(67

)

 

(48

)

 

(97

)

Interest expense

 

96

 

 

104

 

 

202

 

 

195

 

EBIT

 

(235

)

 

(1,962

)

 

(377

)

 

(1,695

)

Restructuring costs

 

265

 

 

32

 

 

337

 

 

174

 

Transaction, separation, and integration-related costs

 

101

 

 

53

 

 

211

 

 

158

 

Amortization of acquired intangible assets

 

152

 

 

151

 

 

300

 

 

289

 

Pension and OPEB actuarial and settlement losses

 

 

 

 

 

2

 

 

 

Goodwill impairment losses

 

 

 

2,887

 

 

 

 

2,887

 

Gain on arbitration award

 

 

 

(632

)

 

 

 

(632

)

Adjusted EBIT

 

$

283

 

 

$

529

 

 

$

473

 

 

$

1,181

 

 

 

 

 

 

 

 

 

 

Adjusted EBIT margin

 

6.2

%

 

10.9

%

 

5.2

%

 

12.1

%

EBIT margin

 

(5.2

)%

 

(40.4

)%

 

(4.2

)%

 

(17.4

)%

Adjusted Free Cash Flow

A reconciliation of net cash provided by operating activities to adjusted free cash flow is as follows:

(in millions)

 

Three Months Ended
September 30, 2020

 

Six Months Ended
September 30, 2020

Net cash provided by operating activities

 

$

472

 

 

$

591

 

Net cash used in investing activities (1)

 

(173

)

 

(234

)

Acquisitions, net of cash acquired

 

 

 

10

 

Payments on capital leases and other long-term asset financings

 

(242

)

 

(487

)

Payments on transaction, separation and integration-related costs

 

81

 

 

169

 

Payments on restructuring costs

 

99

 

 

160

 

Adjusted free cash flow

 

$

237

 

 

$

209

 

____________________  

(1) Excludes short-term investments.

Non-GAAP Results

A reconciliation of reported results to non-GAAP results is as follows:

 

 

Three Months Ended September 30, 2020

(in millions, except per-share amounts)

 

As Reported

 

Restructuring
Costs

 

Transaction,
Separation and
Integration-Related
Costs

 

Amortization of
Acquired
Intangible Assets

 

Tax Adjustment

 

Non-GAAP
Results

Costs of services (excludes depreciation and amortization and restructuring costs)

 

$

3,563

 

 

$

 

$

 

 

$

 

 

$

 

 

$

3,563

 

Selling, general and administrative (excludes depreciation and amortization and restructuring costs)

 

539

 

 

 

(108

)

 

 

 

 

 

431

 

(Loss) income before income taxes

 

(306

)

 

265

 

101

 

 

152

 

 

 

 

212

 

Income tax (benefit) expense

 

(60

)

 

52

 

26

 

 

35

 

 

(2

)

 

51

 

Net (loss) income

 

(246

)

 

213

 

75

 

 

117

 

 

2

 

 

161

 

Less: net loss attributable to non-controlling interest, net of tax

 

(2

)

 

 

 

 

 

 

 

 

(2

)

Net (loss) income attributable to DXC common stockholders

 

$

(244

)

 

$

213

 

$

75

 

 

$

117

 

 

$

2

 

 

$

163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

19.6

%

 

 

 

 

 

 

 

 

 

24.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

(0.96

)

 

$

0.84

 

$

0.30

 

 

$

0.46

 

 

$

0.01

 

 

$

0.64

 

Diluted EPS

 

$

(0.96

)

 

$

0.83

 

$

0.29

 

 

$

0.46

 

 

$

0.01

 

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding for:

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

254.13

 

 

254.13

 

254.13

 

 

254.13

 

 

254.13

 

 

254.13

 

Diluted EPS

 

254.13

 

 

255.18

 

255.18

 

 

255.18

 

 

255.18

 

 

255.18

 


Contacts

Richard Adamonis, Corporate Media Relations, +1-862-228-3481, radamonis@dxc.com
Shailesh Murali, M&A and Investor Relations, +1-703-245-9700, shailesh.murali@dxc.com


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