DXC Technology today reported results for the three and twelve months ended March 31, 2018.
"In fiscal 2018, DXC successfully executed on our strategic roadmap, including the integration of CSC and HPE Enterprise Services, achievement of our first-year financial objectives, and a strengthened leadership position in digital transformation," said Mike Lawrie, DXC's chairman, president and CEO. “Revenue in the quarter grew year-over-year and sequentially, and we delivered more than $1.1 billion dollars of in-year savings. We continue to invest in our digital capabilities and strategic partnerships, and we achieved strong growth in digital this year. Looking ahead, we expect to complete the Perspecta transaction next week, and we have positioned DXC Technology to deliver EPS and margin expansion in fiscal 2019."
Financial Highlights - Fourth Quarter Fiscal 2018
- Diluted earnings per share was $1.93 in the fourth quarter, including $(0.50) per share of restructuring costs, $(0.33) per share of transaction, separation and integration-related costs, $(0.37) per share of amortization of acquired intangible assets, $0.55 per share of pension and OPEB actuarial and settlement gains, and $0.30 per share of tax adjustment related to U.S. tax reform. This compares with $(1.05) in the year ago period.
- Non-GAAP diluted earnings per share was $2.28.
- Revenue in the fourth quarter was $6,294 million compared with $1,889 million in the year ago period. Revenue grew 4.3% compared with $6,036 million in the prior year on a pro forma combined company basis.
- Income before income taxes was $661 million for the fourth quarter, including $(208) million of restructuring costs, $(124) million of transaction, separation and integration-related costs, $(153) million of amortization of acquired intangibles and $203 million of pension and OPEB actuarial and settlement gains. This compares with $(187) million in the year ago period.
- Non-GAAP income before income taxes was $943 million compared with $548 million in the year ago period on a pro forma combined company basis.
- Net income was $565 million for the fourth quarter, including $(145) million of restructuring costs, $(97) million of transaction, separation and integration-related costs, $(108) million of amortization of acquired intangibles, $161 million of pension and OPEB actuarial and settlement gains, and $88 million of tax adjustment related to U.S. tax reform. This compares with $(138) million in the prior year period.
- Non-GAAP net income was $666 million.
- Adjusted EBIT was $1,017 million in the fourth quarter compared with $615 million in the prior year on a pro forma combined company basis. Adjusted EBIT margin was 16.2% compared with 10.2% in the year ago quarter which is presented on a pro forma combined company basis.
- Net cash provided by operating activities was $701 million in the fourth quarter, compared with $173 million in the year ago period.
- Adjusted free cash flow was $557 million in the fourth quarter.
Financial Highlights - Fiscal 2018
- Diluted earnings per share was $6.04 in fiscal 2018, including $(2.06) per share of restructuring costs, $(1.00) per share of transaction, separation and integration-related costs, $(1.37) per share of amortization of acquired intangible assets, $0.60 per share of pension and OPEB actuarial and settlement gains and $1.94 per share of tax adjustment related to U.S. tax reform. This compares with $(0.88) in the year ago period.
- Non-GAAP diluted earnings per share was $7.94.
- Revenue in fiscal 2018 was $24,556 million compared with $7,607 million in the year ago period. Revenue declined (3.3)% compared with $25,394 million in the prior year on a pro forma combined company basis, in line with fiscal 2018 targets.
- Income before income taxes was $1,671 million for fiscal 2018, including $(803) million of restructuring costs, $(408) million of transaction, separation and integration-related costs, $(591) million of amortization of acquired intangibles and $220 million of pension and OPEB actuarial and settlement gains. This compares with $(174) million in the year ago period.
- Non-GAAP income before income taxes was $3,253 million compared with $2,184 million in the prior year on a pro forma combined company basis.
- Net income was $1,782 million for fiscal 2018, including $(597) million of restructuring costs, $(291) million of transaction, separation and integration-related costs, $(398) million of amortization of acquired intangibles, $175 million of pension and OPEB actuarial and settlement gains and $561 million of tax adjustment related to U.S. tax reform. This compares with $(100) million in the prior year period.
- Non-GAAP net income was $2,332 million.
- Adjusted EBIT was $3,499 million in fiscal 2018 compared with $2,445 million in the prior year on a pro forma combined company basis. Adjusted EBIT margin was 14.2% compared with 9.6% in the prior year which is presented on a pro forma combined company basis.
- Net cash provided by operating activities was $3,243 million in fiscal 2018, compared with $978 million in the prior year.
- Adjusted free cash flow was $2,427 million in fiscal 2018.
