DXC Technology (DXC) reported results for the first quarter of fiscal year 2019, representing the period from April 1 through June 30, 2018. All results from continuing operations and comparisons exclude the U.S. Public Sector business, which was combined with Vencore Holding Corp. and KeyPoint Government Solutions to form a new publicly-traded company, Perspecta.
“In the first quarter of fiscal 2019, DXC Technology delivered year-over-year growth in revenue, earnings per share, and margins,” said Mike Lawrie, DXC’s chairman, president and CEO. “We continue to build momentum in digital, with double-digit growth in each of our digital areas, and we also drove growth in our industry offerings, where we are seeing strong demand in financial services and healthcare. During the quarter, we completed the separation of our U.S. Public Sector business, and we also recently announced our intent to acquire Molina Medicaid Solutions from Molina Healthcare. This transaction will expand our state Medicaid business while enhancing the capabilities we provide these agencies. DXC is on track to deliver against its fiscal 2019 financial targets.”
Financial Highlights - First Quarter Fiscal 2019
Diluted earnings per share from continuing operations was $0.78 in the first quarter, including $(0.50) per share of restructuring costs, $(0.19) per share of transaction, separation and integration-related costs, $(0.35) per share of amortization of acquired intangible assets, and $(0.11) per share or tax adjustment related to U.S. tax reform. This compares with $0.33 in the year ago period.
Non-GAAP diluted earnings per share from continuing operations was $1.93. This compares with $1.23 in the year ago period.
Revenue in the first quarter was $5,282 million. Revenue grew 0.9% compared with $5,236 million in the prior year.
Income from continuing operations before income taxes was $360 million in the first quarter, including $(185) million of restructuring costs, $(70) million of transaction, separation and integration-related costs, and $(135) million of amortization of acquired intangibles. This compares with $91 million in the year ago period.
Non-GAAP income from continuing operations before income taxes was $750 million compared with $512 million in the year ago period on a GAAP basis.
Net income was $266 million for the first quarter, including $(144) million of restructuring costs, $(54) million of transaction, separation and integration-related costs, $(102) million of amortization of acquired intangibles and $(33) million of tax adjustment related to U.S. tax reform. This compares with $173 million in the prior year period.
Non-GAAP net income was $599 million.
Adjusted EBIT was $803 million in the first quarter compared with $570 million in the prior year. Adjusted EBIT margin was 15.2% compared with 10.9% in the year ago quarter.
Net cash provided by operating activities was $473 million in the first quarter, compared with $519 million in the year ago period.
Adjusted free cash flow was $321 million in the first quarter.
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