Virginia-based software major Computer Sciences Corporation (CSC) has completed the upgrade of its hardware technology platform for 82 Federal Aviation Administration (FAA) remote sites. Financial details on the deal were not divulged.
The hardware upgrade will facilitate in modernizing air traffic management in those FAA sites.
Computer Sciences was awarded the contract by FAA, long back in 2004, to enhance the flow of traffic within the air space, aiding the task of prediction, identifying constraints, mitigating delays and generating situational awareness. The contract value stood at $589.0 million then.
The successful implementation of the technological upgrade will help FAA to make aviation more safe and efficient. With Computer Sciences’ proven level of expertise in information technology (IT) services, we foresee a couple of deals to chip in from this sector in the coming months.
We are encouraged by Computer Sciences’ strategy of securing continuous revenue flow from a series of government contract wins. During the first quarter of 2011, Computer Sciences won a 5-year contract worth $224.0 million from the U.S Army to provide technical and engineering support for its Aviation and Missile Research Development and Engineering Center (AMRDEC).
Apart from government deals, Computer Sciences recently won a 5-year IT services deal from Swiss Bank UBS AG, to provide extensive services (networking, security and telecommunications) in support of UBS’ voice and data needs.
Computer Sciences reported upbeat fourth quarter results and provided a positive outlook for fiscal 2011. The company is constantly growing through acquisitions, thereby enhancing its portfolio and expanding its operations in new markets. It has a steady flow of new businesses, especially in the government vertical and is financially sound.
Moreover, Computer Sciences’ foray into cloud space is also worth mentioning. However, intense competition in the IT and cloud computing space from players such as Accenture Inc. (ACN) and Hewlett-Packard Co. (HPQ) will remain areas of concern.
We have a short-term Buy rating with Zacks # 2 Rank on Computer Sciences.
Read the full analyst report on "CSC"
Read the full analyst report on "HPQ"
Read the full analyst report on "ACN"
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