Global Infrastructure Services (GIS)
GIS revenue was $2,969 million in the quarter as compared to $881 million for the comparable period of the prior fiscal year. GIS revenue was $3,290 million during the first quarter of fiscal 2017 on a pro forma combined company basis. Excluding the impact of purchase price accounting, GIS revenue decreased 4.7% year-over-year in constant currency on a pro forma combined company basis. The GIS revenue decrease was driven by the tapering decline in traditional infrastructure services. GIS profit margin in the quarter was 9.8% up from 5.8% in the prior year. GIS profit margin was 1.7% for the first quarter of fiscal 2017 on a pro forma combined company basis. New business awards for GIS were $3.7 billion in the first quarter.
United States Public Sector (USPS)
USPS revenue was $677 million in the quarter. Excluding the impact of purchase price accounting, USPS revenue decreased 3.5% year-over-year in constant currency on a pro forma combined company basis. USPS profit margin in the quarter was 11.4%. USPS profit margin was 11.3% in the prior year on a pro forma combined company basis. New business awards for USPS were $184 million in the first quarter, reflecting the timing of contract awards including the pull forward of several deals into DXC’s pre-merger period.
Earnings Conference Call and Webcast
DXC Technology senior management will host a conference call and webcast to discuss these results today at 5 p.m. EDT. The dial-in number for domestic callers is 888-394-8218. Callers who reside outside of the United States or Canada should dial +1-323-701-0225. The passcode for all participants is 7265799. The webcast audio, any presentation slides, and the pro forma combined company fiscal 2017 statements 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 August 15, 2017. The replay dial-in number is 888-203-1112 for domestic callers and +1-719-457-0820 for callers who reside outside of the United States and Canada. The replay passcode is also 7265799. A replay of this webcast will also be available on DXC Technology’s Investor Relations website.
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 certain pro forma combined company information and preliminary non-GAAP information including: constant currency, earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted EBIT margin, non-GAAP income before income taxes, non-GAAP net income, non-GAAP EPS and adjusted free cash flow. Reconciliations of the preliminary non-GAAP measures to the respective most directly comparable measures calculated on a GAAP or pro forma combined company basis, as well as the rationale for management’s use of non-GAAP measures, are included below.
About DXC Technology
DXC Technology (NYSE: DXC) is the world’s leading independent, end-to-end IT services company, helping clients harness the power of innovation to thrive on change. Created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise, DXC serves nearly 6,000 private and public sector clients across 70 countries. The company’s technology independence, global talent and extensive partner network combine to deliver powerful next-generation IT services and solutions. DXC is recognized among the best corporate citizens globally. For more information, visit DXC's website at www.dxc.technology.
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. For a written
description of these factors, see the section titled “Risk Factors” in
CSC’s Form 10-K for the fiscal year ended March 31, 2017 and DXC's
(formerly named Everett SpinCo, Inc.) Form S-4 filed on February 24,
2017 and any updating information in subsequent SEC filings. 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.
