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Earnings Forecasts

El Segundo firm finds more errors

September 11, 2007|From Times Wire Services

Computer Sciences Corp. said accounting errors over the last 10 years would force it to report an additional $200 million in tax expenses.

The board also determined that the fiscal 2007 annual report wasn't reliable because of accounting mistakes, the El Segundo-based technology services company said.

Besides the expenses, Computer Sciences said it expected corrected foreign-exchange accounting to lead to a "material cumulative gain." The company didn't say how much that benefit might be.

Computer Sciences had said in May that the tax accounting problems might require restatements of as much as $400 million. Separately, the company reported that misdating of stock option grants would increase costs by about $60 million.

The company's earnings last quarter, released last month in preliminary form, trailed some analyst estimates. Excluding some items, profit was 65 cents to 75 cents a share. The midpoint of that range, 70 cents, was less than the 73 cents estimated by analysts in a Bloomberg survey.

Computer Sciences said it would restate results for the fiscal year that ended March 30 and the quarter that ended June 29 "as soon as practicable."

The company's shares fell 73 cents to $54.61.

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