Government order wins continue for computing major Computer Sciences Corporation (CSC) as the company recently won an $874.0 million contract from the department of Defense. Per the contract, CSC will offer an unmanned aircraft system intelligence surveillance system and investigation services to the Naval Air Systems Command.
The company is playing to its strengths, and government deals have always been its forte. CSC also has the potential to compete for the land-based task orders. This marks the continuation of the series of deal wins that the company has gathered over the years.
In a separate announcement, the company revealed its recent tie-up with Quandis to offer CSC’s Early Resolution clients a new short sale tracking and fulfillment portal, which will help reduce the time needed for processing cycles. This portal is also beneficial for the consumers who wish to sell their homes instead of foreclosing and helps the mortgage investors to reduce their losses.
As per the terms of the agreement, CSC will join hands with Quandis to build and maintain a web-based data exchange interface to facilitate short sale offers between servicers, agents, borrowers and investors on a single platform.
Through this single offering, users can coordinate between time-sensitive information and provide a single audit trail from initial borrower contact through short sale plan completion. This would help improve operating efficiency and at the same time will also enhance the probability of short sale approval.
This apart, CSC has a large project pipeline and continues to augment it at regular intervals. Previously, the company wona contract from the U.S. Navy, which further enhanced Computer Sciences very strong business relationship with the U.S. Government departments. The U.S. Navy engineering contract is worth up to $38.0 million and the company will provide engineering support to the Naval Air Warfare Center Weapons Division.
The recent deal marks the company’s sixth consecutive government contract win over the past four months. First, the company won a contract worth $25.0 million from the U.S. Department of State Bureau of Consular Affairs, to conduct consular operations in the Tel Aviv department of Jerusalem.
Although the company reported mediocre operating performance in the third quarter, the flow of new business improved substantially from the year-ago period.
Despite the intense competition in the IT and cloud computing space from both small and big players such as Accenture plc (ACN) and Hewlett-Packard Company (HPQ), the European exposure and strained federal budgets, we think that things are beginning to look bright given the string of new business wins.
The company has a short-term Zacks #3 Rank (implying a Hold rating).
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