<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
Form 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 27, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to _________________
Commission File No. 1-4850
COMPUTER SCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Nevada 95-2043126
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
2100 East Grand Avenue
El Segundo, California 90245
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (310) 615-0311
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
77,150,280 shares of Common Stock, $1.00 par value, were outstanding on
June 27, 1997.
<PAGE>
COMPUTER SCIENCES CORPORATION
Index to Form 10-Q
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Statements of Income,
First Quarter ended June 27, 1997 and
June 28, 1996.................................................... 3
Consolidated Condensed Balance Sheets,
June 27, 1997 and March 28, 1997................................. 4
Consolidated Condensed Statements of Cash Flows
First quarter ended June 27, 1997 and June 28, 1996.............. 5
Notes to Consolidated Condensed Financial Statements................ 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.............. 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................... 12
2
<PAGE>
<TABLE>
PART I, ITEM 1. FINANCIAL STATEMENTS
COMPUTER SCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
First Quarter Ended
------------------------
(In thousands except June 27, June 28,
per-share amounts) 1997 1996
----------- -----------
<S> <C> <C>
Revenues $1,488,750 $1,303,892
----------- -----------
Costs of services 1,171,266 1,037,208
Selling, general and
administrative 138,613 116,453
Depreciation and
amortization 88,755 71,607
Interest expense 10,736 8,314
Interest income (1,401) (1,463)
Special charge (note A) 208,393
----------- -----------
Total costs and
expenses 1,616,362 1,232,119
----------- -----------
Income before taxes (127,612) 71,773
Taxes on income (note A) (180,200) 26,496
----------- -----------
Net income $ 52,588 $ 45,277
=========== ===========
Earnings per common
share (notes A and B) $ 0.67 $ 0.58
=========== ===========
</TABLE>
[FN]
See accompanying notes.
3
<PAGE>
<TABLE>
COMPUTER SCIENCES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
June 27, Mar. 28,
(In thousands) 1997 1997
----------- -----------
(unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 75,790 $ 110,726
Receivables 1,338,205 1,294,003
Prepaid expenses and other current assets 216,572 207,698
----------- -----------
Total current assets 1,630,567 1,612,427
----------- -----------
EXCESS OF COST OF BUSINESSES ACQUIRED
OVER RELATED NET ASSETS, NET 516,602 561,670
OTHER ASSETS 620,292 518,692
PROPERTY AND EQUIPMENT, at cost 1,773,297 1,668,905
Less accumulated depreciation and amortization 844,275 780,836
----------- -----------
Property and equipment, net 929,022 888,069
----------- -----------
Total assets $3,696,483 $3,580,858
=========== ===========
CURRENT LIABILITIES:
Short-term debt and current
maturities of long-term debt $ 62,130 $ 29,933
Accounts payable 266,224 295,112
Accrued payroll and related costs 276,073 252,902
Other accrued expenses 323,163 311,283
Deferred revenue 92,276 112,888
Income taxes payable 11,235 84,995
----------- -----------
Total current liabilities 1,031,101 1,087,113
----------- -----------
LONG-TERM DEBT, NET 725,226 630,842
----------- -----------
OTHER LONG-TERM LIABILITIES 194,434 193,343
----------- -----------
STOCKHOLDERS' EQUITY (note C):
Common stock issued, par value $1.00 per share 77,489 76,925
Other stockholders' equity 1,668,233 1,592,635
----------- -----------
Total stockholders' equity 1,745,722 1,669,560
----------- -----------
Total liabilities and stockholders' equity $3,696,483 $3,580,858
=========== ===========
</TABLE>
[FN]
See accompanying notes.
4
<PAGE>
<TABLE>
COMPUTER SCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
<CAPTION>
First Quarter Ended
-----------------------
(In thousands, increase (decrease) in June 27, June 28,
cash and cash equivalents) 1997 1996
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 52,588 $ 45,277
Adjustments to reconcile net income to net
cash provided by operating activities:
Special charge net of tax (1,707)
Depreciation and amortization 88,755 71,607
Provision for losses on accounts receivable (1,537) 2,677
Changes in assets and liabilities, net of
effects of acquisitions:
Increase in assets (85,323) (88,766)
Decrease in liabilities (42,440) (42,046)
---------- ----------
Net cash provided by (used in) operating activities 10,336 (11,251)
---------- ----------
Investing activities:
Purchases of property, plant and equipment (90,936) (64,131)
Acquisitions, net of cash acquired (12,599) (55,366)
Outsourcing contracts (77,840)
Purchased and internally developed software (12,925) (13,180)
Other investing cash flows 8,833 2,415
---------- ----------
Net cash used in investing activities (185,467) (130,262)
---------- ----------
Financing activities:
Borrowing under commercial paper, net 96,568 27,009
Borrowing under lines of credit, net 30,742 18,997
Principal payments on long-term debt (2,127) (303)
Proceeds from stock option transactions 13,131 11,424
Other financing cash flows 1,881 3,826
---------- ----------
Net cash provided by financing activities 140,195 60,933
---------- ----------
Net decrease in cash and cash equivalents (34,936) (80,580)
Cash and cash equivalents at beginning of year 110,726 113,873
---------- ----------
Cash and cash equivalents at end of period $ 75,790 $ 33,293
========== ==========
</TABLE>
[FN]
See accompanying notes.
5
<PAGE>
COMPUTER SCIENCES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(A) CSC recognized a net special credit of $1.7 million, or 2 cents per
share, in the current fiscal quarter as a result of recent developments
at CSC Enterprises, a general partnership of which CSC, through one of
its affiliates, is the managing general partner. This net credit
resulted from a tax benefit of $135 million and an after-tax special
charge of $133.3 million.
During the fiscal quarter ended June 27, 1997, several partners withdrew
from CSC Enterprises. As a result of these withdrawals, CSC Enterprises
took actions that caused CSC to recognize an increase in the tax basis of
certain assets. As required by SFAS No. 109, this tax basis increase
resulted in a deferred tax asset of $135 million and a corresponding
reduction of CSC's provision for income taxes during the current fiscal
quarter.
In connection with these developments, CSC Enterprises reviewed its
operations, its market opportunities and the carrying value of its
assets. Based on this review, plans were initiated during the current
fiscal quarter to eliminate certain offerings and write down assets,
primarily within its telecommunications operations. As a result of these
plans, CSC recognized an after-tax special charge of $133 million
during the fiscal quarter ending June 27, 1997. This special charge
includes goodwill of $35 million, contract termination costs of $34
million, deferred contract costs and other assets of $20 million,
telecommunications software and accruals of $22 million,
telecommunications property, equipment and intangible assets of
$12 million and other costs of $10 million.
(B) Primary earnings per common share are based on the weighted average
number of common stock and common stock equivalent shares (dilutive stock
options) outstanding of 78,520,000 and 77,677,000 respectively, for the
three months ended June 27, 1997 and June 28, 1996 (see Part II,
Exhibit 11).
(C) No dividends were paid during the periods presented. There were
77,489,216 shares at June 27, 1997 and 76,924,836 shares at March
28, 1997 of $1.00 par value common stock issued with 338,936 and
332,220 shares, respectively, of treasury stock.
(D) Cash payments for interest on indebtedness were $17,765,000 and
$11,362,000 respectively, for the three months ended June 27, 1997 and
June 28, 1996. Cash payments for taxes on income were $25,216,000 and
$9,354,000 respectively, for the three months ended June 27, 1996, and
June 28, 1996.
(E) The financial information reported, which is not necessarily indicative
of the results for a full year, is unaudited but includes all adjustments
which the Company considers necessary for a fair presentation. All such
adjustments are normal recurring adjustments.
6
<PAGE>
(F) Certain reclassifications have been made and prior period financial
statements have been restated to reflect the August 1, 1996 acquisition
of Continuum, which was accounted for as a pooling of interests.
Continuum's expense classifications have been reclassified to conform to
CSC's presentation. Continuum's interest income has been removed from
its revenues to conform to CSC's separate presentation of interest
income. Additionally, Continuum's common stock equivalents have been
converted to CSC shares at the exchange rate of .79 and included in the
average common shares outstanding.
7
<PAGE>
PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
First Quarter of Fiscal 1998 versus
First Quarter of Fiscal 1997
Revenues
The Company derived its revenues for the first quarter from the following
market sectors (dollars in millions):
<TABLE>
<CAPTION>
First Quarter
-------------- Pct.
FY98 FY97 Growth
------ ------ ------
<S> <C> <C> <C>
U.S. Commercial $ 605 $ 475 27.2%
Europe 381 300 26.8
Other International 99 83 20.8
------ ------ ------
Total Commercial 1,085 858 26.5
U.S. Federal Government 404 446 (9.4)
------ ------ ------
Total $1,489 $1,304 14.2%
====== ====== ======
</TABLE>
During the first quarter ended June 27, 1997, the Company's total revenue
increased 14.2%, or $185 million, over the same period last year. Commercial
revenues grew 26.5%, or $227 million over the same quarter of last year. U.S.
Federal revenues decreased 9.4%, or $42 million.
U.S. commercial revenues grew 27.2% or $130 million during the first quarter
of fiscal 1998 over the same period last year. Approximately half of the
growth was provided by information technology outsourcing contracts, including
recent contracts with J.P. Morgan and DuPont. The remainder is derived
principally from continued demand for consulting and systems integration
services, the acquisition of American Practice Management and growth at CSC
Financial Services Group.
Europe revenues grew $81 million or 26.8% during the first quarter of fiscal
1998 over the same period last year. Growth came principally from new
outsourcing business signed last year; from the acquisition last year of 75%
of Datacentralen, a major provider of information technology services in
Denmark; and from CSC's German SAP consulting practice. Growth in Other
International revenues resulted mainly from expansion of our international
financial services business and Australian operations.
U.S. federal government revenue accounts for 27.1% of total revenue for the
quarter compared to 34.2% for the first quarter of 1997. Federal revenue
decreased 9.4% or $42 million, principally due to the completion last year
several contracts. During the first quarter of fiscal 1998, the Company
announced $126 million in new federal contracts.
8
<PAGE>
As a result of the trends described above, the Company's revenues by market
sector are as follows:
<TABLE>
<CAPTION>
Revenue by Market Sector, First Quarter
as a percentage of total FY98 FY97
- ---------------------------- ------ ------
<S> <C> <C>
U.S. Commercial 40% 36%
Europe 26 23
Other International 7 6
------ ------
Total Commercial 73 65
U.S. Federal Government 27 35
------ ------
Total Revenue 100% 100%
====== ======
</TABLE>
Costs and Expenses
The Company's recurring costs and expenses as a percentage of revenue are as
follows (dollars in millions):
<TABLE>
<CAPTION>
Percentage of
Dollar Amount Revenue
--------------- ---------------
First Quarter First Quarter
--------------- ---------------
FY98 FY97 FY98 FY97
------ ------ ------ ------
<S> <C> <C> <C> <C>
Costs of services $1,171 $1,037 78.7% 79.5%
Selling, general & admin. 139 116 9.3 8.9
Depreciation and amort. 89 72 6.0 5.5
Interest expense, net 9 7 0.6 0.5
------ ------ ------ ------
Total $1,408 $1,232 94.6% 94.5%
====== ====== ====== ======
</TABLE>
Comparing the first quarters of fiscal 1998 and 1997, total costs and expenses
remained at a similar level as a percentage of revenue. Cost of services as a
percentage of revenue decreased due to the continued shift in the Company's
revenue mix toward commercial operations, and performance improvements
within
European operations and the Financial Services Group.
Selling, general and administrative costs also increased as a percentage of
revenue due to growth in commercial operations relative to U.S. Federal
business. This increase was offset in part by improvement in the selling,
general and administrative percentage within the Company's outsourcing and
U.S. consulting operations.
9
<PAGE>
Special Charge
The results of operations for the quarter ended June 27, 1997 include a net
special credit of $1.7 million, or 2 cents per share, resulting from recent
developments at CSC Enterprises, a general partnership which operates the
Company's credit services operations and carries out other business strategies
through acquisition and investment. This net credit resulted from a tax
benefit of $135 million and a special charge of $208.4 ($133.3 million after
tax).
During the fiscal quarter ended June 27, 1997, several partners withdrew from
CSC Enterprises. As a result of these withdrawals, CSC Enterprises took
actions that caused CSC to recognize an increase in the tax basis of certain
assets. As required by SFAS No. 109, this tax basis increase resulted in a
deferred tax asset of $135 million and a corresponding reduction of CSC's
provision for income taxes during the current fiscal quarter.
In connection with these developments, CSC Enterprises reviewed its
operations, its market opportunities and the carrying value of its assets.
Based on this review, plans were initiated during the current fiscal quarter
to eliminate certain offerings and write down assets, primarily within its
telecommunications operations. As a result of these plans, CSC recognized an
after-tax special charge of $133 million during the fiscal quarter ending
June 27, 1997. This special charge includes goodwill of $35 million, contract
termination costs of $34 million, deferred contract costs and other assets of
$20 million, telecommunications software and accruals of $22 million,
telecommunications property, equipment and intangible assets of
$12 million and other costs of $10 million.
Income Before Taxes
Reflecting the Company's revenue growth, income before taxes and before
special items increased to $80.8 million, up $9.0 million, or 12.6% compared
with the same quarter last year. The Company's profit margin before special
items was 5.4% compared to 5.5% for the same quarter last year.
Net Income
Earnings before the special items were $50.9 million for the first quarter of
fiscal 1998, up $5.6 million, or 12.4%, over the same quarter last year. This
year's first quarter earnings per share of 67 cents increased 15.5% over the
58 cents for last year's first quarter. The current quarter earnings include
a net special credit of $1.7 million or 2 cents per share.
Cash Flows
Cash provided by operating activities was $10.3 million for the first quarter,
compared with a use of cash of $11.3 million during the same period last year.
Higher earnings and non-cash depreciation and amortization expenses were the
primary drivers of the improvement.
10
<PAGE>
The Company's cash expenditures for investing activities totaled $185.5
million for the most recent quarter versus $130.3 million during the same
period of last year. The increase principally relates to the acquisitions of
outsourcing assets in connection with the DuPont Contract and assets
purchases
within the European Group.
Cash provided by financing activities was $140.2 million for the most recent
quarter versus $60.9 million for the same period last year. Current year
financing activities utilized the Company's established credit lines and
commercial paper program.
Financial Condition
During the first quarter of fiscal 1998, the Company's capital outlays
included $181.4 million of business investments in the form of fixed asset
purchases and acquisitions. These amounts were funded from operating cash
flows, additional debt and existing cash, which decreased from $110.7 million
to $75.8 million. As a result of the net increase in borrowings, the
Company's debt-to-total capitalization ratio increased to 31.1% at June 27,
1997 versus 28.4% at fiscal 1997 year end.
It is management's opinion that the Company will be able to meet its liquidity
and cash needs for the foreseeable future through the combination of cash
flows from operating activities, cash balances, unused borrowing capacity and
other financing activities, including the issuance of debt and/or equity
securities.
11
<PAGE>
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
<TABLE>
<CAPTION>
a. Exhibits
<S> <C> <C>
2.1 Agreement and Plan of Merger dated as of April 28, 1996 by
and among the Registrant, The Continuum Company, Inc. and
Continental Acquisition, Inc. (k)
3.1 Restated Articles of Incorporation, effective
October 31, 1988 (c)
3.2 Amendment to Restated Articles of Incorporation, effective
August 10, 1992 (i)
3.3 Amendment to Restated Articles of Incorporation, effective
July 31, 1996 (l)
3.4 Certificate of Amendment of Certificate of Designations of
Series A Junior Participating Preferred Stock, effective
August 1, 1996 (n)
3.5 By-Laws, amended and restated effective February 3, 1997 (p)
10.1 Annual Management Incentive Plan, effective April 2, 1983* (a)
10.2 1978 Stock Option Plan, amended and restated effective
March 31, 1988* (m)
10.3 1980 Stock Option Plan, amended and restated effective
March 31, 1988* (m)
10.4 1984 Stock Option Plan, amended and restated effective
March 31, 1988* (m)
10.5 1987 Stock Incentive Plan* (b)
10.6 Schedule to the 1987 Stock Incentive Plan for United
Kingdom personnel* (b)
10.7 1990 Stock Incentive Plan* (g)
10.8 1992 Stock Incentive Plan, amended and restated effective
August 9, 1993* (m)
10.9 Schedule to the 1992 Stock Incentive Plan for United
Kingdom personnel* (p)
10.10 1995 Stock Incentive Plan* (j)
10.11 Deferred Compensation Plan, amended and restated effective
November 4, 1996* (o)
10.12 Supplemental Executive Retirement Plan, amended and
restated effective November 4, 1996* (o)
10.13 1990 Nonemployee Director Retirement Plan, amended and
restated effective December 6, 1996* (p)
10.14 Form of Indemnification Agreement for Directors (d)
10.15 Form of Indemnification Agreement for Officers (e)
10.16 Information Technology Services Agreements with General
Dynamics Corporation, dated as of November 4, 1991 (h)
10.17 $350 million Credit Agreement dated as of September 6, 1995 (j)
10.18 First Amendment to $350 Million Credit Agreement dated
September 23, 1996 (o)
10.19 Amended and Restated Rights Agreement, effective
August 1, 1996 (n)
12
<PAGE>
11 Calculation of Primary and Fully Diluted Earnings Per Share
27 Article 5 Financial Data Schedule
28 Revenues by Market Sector
99.1 Annual Report on Form 11-K for the Matched Asset Plan of the
Registrant for the fiscal year ended December 31, 1996 (f)
99.2 Annual Report on Form 11-K for the Hourly Savings Plan of
CSC Outsourcing Inc. for the fiscal year ended
December 31, 1996 (f)
99.3 Annual Report on Form 11-K for the CUTW Hourly Savings Plan
of CSC Outsourcing, Inc. for the fiscal year ended
December 31, 1996 (f)
</TABLE>
13
<PAGE>
Notes to Exhibit Index:
*Management contract or compensatory plan or agreement
(a)-(f) These exhibits are incorporated herein by reference to the
Company's Annual Report on Form 10-K, as amended, for the fiscal
years ended on the respective dates indicated below:
(a) March 30, 1984 (d) April 3, 1992
(b) April 1, 1988 (e) March 31, 1995
(c) March 31, 1989 (f) March 28, 1997
(g) Incorporated herein by reference to the Registrant's Registration
Statement on Form S-8 filed on August 15, 1990.
(h) Incorporated herein by reference to the Registrant's Current
Report on Form 8-K dated November 4, 1991.
(i) Incorporated herein by reference to the Registrant's Proxy
Statement for its August 10, 1992 Annual Meeting of Stockholders.
(j) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on November 13, 1995.
(k) Incorporated herein by reference to the Registrant's Current
Report on Form 8-K dated April 28, 1996.
(l) Incorporated herein by reference to the Registrant's Proxy
Statement for its July 31, 1996 Annual Meeting of Stockholders
(m) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on August 12, 1996.
(n) Incorporated herein by reference to the Registrant's Current
Report on Form 8-K dated August 1, 1996
(o) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on November 12, 1996.
(p) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on February 10, 1997.
b. Reports on Form 8-K:
There was one report on Form 8-K filed during the first quarter of fiscal
1998. On June 23, 1997, the Registrant filed a Current Report on Form 8-K
dated June 23, 1997 reporting that the Registrant expected to recognize a net
tax credit in the fiscal quarter ending June 27, 1997.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPUTER SCIENCES CORPORATION
Date: August 8, 1997 By: /s/ Denis M. Crane
-----------------------------
Denis M. Crane
Vice President and Controller
Chief Accounting Officer
15
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description of Exhibit
- ------- ----------------------
<S> <C>
11 Calculation of Primary and Fully Diluted Earnings Per Share
27 Article 5 Financial Data Schedule
28 Revenues by Market Sector
</TABLE>
16
<TABLE>
EXHIBIT 11
COMPUTER SCIENCES CORPORATION
CALCULATION OF EARNINGS PER SHARE
(In thousands except per-share amounts)
<CAPTION>
First Quarter Ended
----------------------
June 27, June 28,
1997 1996
---------- ----------
<S> <C> <C>
Net income $52,588 $45,277
========== ==========
Shares:
Weighted average shares
outstanding 76,792 75,273
Common stock
equivalents 1,728 2,404
---------- ----------
Total for primary and
fully diluted 78,520 77,677
========== ==========
Earnings Per Share:
Primary and fully
diluted* $ 0.67 $ 0.58
========== ==========
</TABLE>
[FN]
* The fully diluted calculation is submitted in accordance with Regulation
S-K item 601 (b) (11) although not required by footnote 2 to paragraph 14
of APB Opinion No. 15 because it results in dilution of less than 3%.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<FISCAL-YEAR-END> Apr-03-1998
<PERIOD-START> Mar-29-1997
<PERIOD-END> Jun-27-1997
<PERIOD-TYPE> 3-MOS
<CASH> 75,790
<SECURITIES> 0
<RECEIVABLES> 1,395,834
<ALLOWANCES> 57,629
<INVENTORY> 0
<CURRENT-ASSETS> 1,630,568
<PP&E> 1,773,297
<DEPRECIATION> 844,275
<TOTAL-ASSETS> 3,696,483
<CURRENT-LIABILITIES> 1,031,101
<BONDS> 725,226
<COMMON> 77,489
0
0
<OTHER-SE> 1,668,233
<TOTAL-LIABILITY-AND-EQUITY> 3,696,483
<SALES> 0
<TOTAL-REVENUES> 1,488,750
<CGS> 0
<TOTAL-COSTS> 1,172,803
<OTHER-EXPENSES> 88,755
<LOSS-PROVISION> (1,537)
<INTEREST-EXPENSE> 9,335
<INCOME-PRETAX> (127,612)
<INCOME-TAX> (180,200)
<INCOME-CONTINUING> 52,588
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 52,588
<EPS-PRIMARY> .67
<EPS-DILUTED> .67
</TABLE>
<TABLE>
EXHIBIT 28
COMPUTER SCIENCES CORPORATION
REVENUES BY MARKET SECTOR
(In millions)
<CAPTION>
Fiscal Period Ended % of Total
---------------------- ----------------------
June 27, June 28, June 27, June 28,
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
FIRST QUARTER
Global commercial:
U.S. commercial $ 604.8 $ 475.4 40% 36%
Europe 380.7 300.3 26 23
International 99.7 82.5 7 6
--------- --------- --------- ---------
Total 1,085.2 858.2 73 65
U.S. federal government:
Department of Defense 267.8 296.9 18 23
NASA 76.0 75.7 5 6
Civil agencies 59.8 73.1 4 6
--------- --------- --------- ---------
Total 403.6 445.7 27 35
--------- --------- --------- ---------
Total revenues $1,488.8 $1,303.9 100% 100%
========= ========= ========= =========
</TABLE>
</PAGE>
