DOW JONES NEWSWIRES CSC's (CSC) fiscal second-quarter profit slumped 51% amid a prior-year tax benefit as the information-technology company reported higher operating margins and better-than-expected results excluding items. Recurring revenue from long-term contracts has helped CSC report solid earnings despite contraction in information technology spending. On Wednesday, Chairman and Chief Executive Michael Laphen said the company's federal business continues to grow due to the company's solid market position, but demand for short-term information technology consulting projects remained subdued. CSC also affirmed its full-year targets. For the quarter ended Oct. 2, CSC posted a profit of $221 million, or $1.40 a share, down from $453 million, or $2.95 a share, a year earlier. The prior year's results included net tax benefits of $2.27 a share to resolve tax audits. In August, the company predicted earnings of about $1.39, above analysts' then-estimates. Revenue fell 4.7% to $4.04 billion. Analysts polled by Thomson Reuters most recently expected $4.01 billion. Operating margin grew to 8.4% from 6.7%. The company received $4.58 billion in new awards during the quarter, down slightly from $4.6 billion a year ago. CSC, which had been known as Computer Sciences Corp., changed its name last year as part of a five-year marketing and advertising campaign. Shares fell 1.1% to $53.98 in after-hours trading. The stock is up over half this year. -By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
