Computer Sciences Corporation
) will be providing worldwide logistics support by virtue of a task
order contract from the U.S. Army Communications-Electronics
The agreement requires CSC to provide the logistics support to
the 'Army command, control, communications, computers,
intelligence, surveillance and reconnaissance (C4ISR) for worldwide
sustainment services commodity line.' These are some of the
sensitive areas offering good business potential.
The two-year contract's value is estimated at $220 million and
comes under the Strategic Services Sourcing (S3) contract that was
awarded to the company in 2006.
CSC is in the process of offering new products and services to
tap new opportunities and similar contracts. Moreover, CSC's new
management team is taking the necessary steps to implement a
multi-year strategy, which ultimately will help them to improve
CSC's competitive positioning. CSC is also focusing on proper
execution of the projects in hand.
Restructuring, cost-control and new contract wins are some of
the ways in which the company is trying to increase its earnings.
Moreover, the company is also coming up with some new offerings to
attract its government customers, which may increase the chances of
The company is taking new initiatives to build its position in
the cloud computing space, although intense competition from both
small and big players such as
) is a challenge. This apart, CSC's European exposure may affect
Currently, CSC holds a Zacks #2 Rank (implying a short-term Buy
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