Information Technology major
Computer Sciences Corporation
) recently announced that it has been chosen by a leading
Kuwait-based engineering and construction company Combined Group
Contracting (CGC), as the company's SAP implementation partner.
As per the terms of the contract, the implementation will be
done by CSC India, while the execution will be carried out by a
team of SAP consultants from CGC's offices in Kuwait and CSC
India's offshore delivery centre.
The company is consistently winning private and government
orders, which will likely extend its customer base.
Computer Sciences has won a number of deals over the past six
months. The company is not only generating revenue through new deal
wins, but recently announced that it will be licensing its legal
management software to SafeAuto Insurance Company. Financial
details of the deal were not divulged.
Leveraging the solution, the auto-insurance carrier will be able
to measure its legal expense before-hand and reduce the same
accordingly. Moreover, it will allow SafeAuto to improve
communication with law firms and individual lawyers. This will
ultimately help the company to expand into additional geographies
while dealing with legal matters easily.
Computer Sciences is one of the leading players in the
information technology (IT) services industry. CSC reported
mediocre fourth quarter 2012 results, with quarterly loss missing
the Zacks Consensus Estimate. Operating performance could be
described as moderate at best, although new business awards
Deal wins are catalysts for any company and Computer Sciences
has no dearth of them. But the continued uncertainty regarding the
U.K. National Health Service contract, intense competition in the
IT and cloud computing space from both small and big players such
), its European exposure and strained federal budgets have prompted
our bearish outlook on the stock.
Currently, CSC holds a Zacks #5 Rank (implying a short-term
Strong Sell rating).
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