Government technology services contractor CSRA (NYSE: CSRA) will observe the merger of its former parent Computer Sciences Corp. (NYSE: CSC) with Hewlett Packard Enterprise‘s (NYSE: HPE) enterprise services segment for any potential opportunities, CSRA CEO Larry Prior told investors Wednesday.
Falls Church, Virginia-based CSRA entered the market in November 2015 via the merger of the former CSC U.S. public sector business with Fairfax-based government services contractor SRA International.
CSC and HPEÂ expect their deal to close in March 2017 and project the futureÂ combined companyÂ to generate approximately $2.86 billion in annual U.S. public sector revenueÂ to represent 11Â percent of total sales.
“As a company, weâve got a lot of time to think about this, “Â Prior said to investors in a call to discuss CSRA’s fourth quarter and fiscal year 2016 results.
“I would expect it to be business as usual for all parties, as they navigate the next nine months. I know our board is tremendously interested in it and weâll consider it along with all of the other strategic opportunities that will avail themselves in the market over the next year.”
As covered Tuesday by GovCon Wire, a two-year non-compete agreement forbidsÂ CSC from participating in the federal government market and also has some restrictions on both CSC and CSRA regarding activity with state and local agencies.
Prior also told investors CSRA will aim to submit nearly $16 billion in newÂ bidsÂ for its 2017 fiscal year that started April 2Â compared to $10 billion as outlined in the company’s NovemberÂ presentation to investors in November.
Cybersecurity, cloud computing and data analytics work present potential “next-generation” information technologyÂ opportunities for CSRAÂ as agencies increasingly seek to adopt those platforms, Prior said.
CSRA — one ofÂ 30 companies listed in Executive Mosaic’s GovCon Index — saidÂ fourth quarter earnings wereÂ 50 cents per share to exceed Wall Street forecasts by 2 cents with revenue of $1.29 billionÂ to fall below the consensus analyst outlook of $1.31 billion.
For the full fiscal year, Â earnings totaled $1.96 per share versus analyst expectations of $2.04 EPS and revenue at $5.2 billionÂ compared toÂ Wall Street’s outlook of $5.22 billion.
CSRA andÂ reported financialÂ results as pro forma to compare the prior year period as if theÂ companyÂ existed in its current formÂ then.
On a pro forma basis, fourth quarter revenue fell 4.41 percent as compared to the same prior year period.
As of Wednesday’s close, shares in CSRA haveÂ declined 14.53 percent since the start of the year and are down 12.76 percent since its Nov. 30, 2015 startÂ of regular-way trading on the New York Stock Exchange at $29.39.
As of the noon report shares of CRSA have fallen to 25.26 down 1.5 per cent from the opening price.