CSC Errors Could Cost $200 Million

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Computer Sciences Corp. said late Monday that it plans to restate fiscal results for more than a decade to correct errors relating to its accounting for income taxes and for the effect of foreign currency exchange rate movements on certain accounts.


The El Segundo-based information technology services provider estimated that the corrections could result in a cumulative charge of roughly $200 million for fiscal results between 1997 and 2007. The company reported $388 million in profits in June for 2007 and has averaged about $526 million in profit per year over the last five years.


The company added that it will file its results for the quarter ended June 29 after it files its amended annual report for fiscal 2007.


Shares in CSC closed down 1.3 percent, or 73 cents, to $54.61 but gained 30 cents $54.91 in after-hours trading.

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