CSC splits into two companies

Now that CSC is done restructuring it will split into two companies focused on the commercial and public sector markets.

Computer Sciences Corp. said that it will split into two separate publicly traded companies---one focused on commercial businesses and another on the public sector.

The move also coincides with a special cash dividend of $10.50 a share when the companies split. CSC said the split will be complete by October.

For the last three years, CSC has restructured and revamped in what it called a "get fit" phase. CEO Mike Lawrie said CSC has completed its turnaround plans and a split made sense. "Our analysis shows significant benefits of going with a pure-play strategy," he said in a statement.

This pure play strategy is also being carried out by Hewlett-Packard, which is separating into two companies for better focus.

The two CSCs include:

  1. A commercial unit that will revolve around IT services and consulting. The company will have $8.1 billion in revenue, more than 1,000 customers and 51,000 employees.
  2. The public sector unit will provide services and infrastructure to federal and state governments and agencies. The unit will have revenue of $4.1 billion with 14,000 employees.

Separately, CSC reported fourth quarter earnings of $9 million, or 6 cents a share, on revenue of $2.91 billion, down 12.6 percent from a year ago. For fiscal 2015, CSC reported a loss of $8 million, or 6 cents a share. CSC's results include a bevy of restructuring charges.