Computer Sciences Corporation (CSC) continues to sign new contracts at regular intervals. The company recently announced that CEC Entertainment Inc. (CEC) has licensed CSC’s RISKMASTER, an independent risk and claims management system.
The family dining and entertainment company will use the software to integrate and streamline liability and workers compensation claims as well as administration and risk management processes.
Five organizations, from different industries, including health care professionals and pharmaceutical majors have also subscribed to the aforementioned technology. We believe that the company will find many takers for this technology in the days to come.
CSC’s recent deal wins also include a 5-year information technology (IT) outsourcing contract worth $200.0 million, with Italy-based defense electronics company SELEX Galileo. Per the contract, Computer Sciences will extend its full range of IT services in support of SELEX Galileo’s IT eco-system. This contract is indicative of a long-standing relationship between the two and the latter’s trust in Computer Sciences’ services.
Moreover in February 2011, the company launched “Patient in Your Pocket,” a wireless application for BlackBerry smartphones that facilitates on-the-go health care professionals to deliver better patient care. The application equips mobile health care professionals with immediate access to patient information.
The solution integrates with clinical systems, enabling caregivers to retrieve current and accurate patient information, update patient data and conditions while care is being given, collaborate, and conduct administrative functions such as coordinating appointment schedules away from the desktop. This is expected to make life easy for health care professionals and has the potential to generate additional business for the company.
We also believe that Computer Sciences could benefit from the market opportunity for information technology and business process outsourcing, stability from its government business as well as improving operating margin and cash flow generation. But lingering concerns related to the decelerating pace of business in Europe and continued slowdown of contract awards from federal agencies remain.
Computer Sciences is one of the leading players in the information technology services industry. We believe that the company’s fundamentals could outperform in the to-be reported quarter based on new business opportunities. However, contract delays, foreign exchange headwinds and competition from Hewlett-Packard Company (HPQ) and Accenture plc (ACN) influence our Neutral outlook.
Currently, Computer Sciences has a Zacks #3 Rank implying a short-term Hold recommendation.
ACCENTURE PLC (ACN): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
Zacks Investment Research
