*UKHotViewsExtra* Salvino circles the wagons as DXC's decline accelerates

DXC Technology has released full year results reflecting heavy losses and a sharp fall in revenue, in the face of ongoing customer attrition. For the year ended 31 March 2020 the company recorded a net loss of $5.4bn, whilst headline revenue was down by 5.7% to $19.6bn.

DXC’s Global Infrastructure Services business (GIS) was down 13.3% to $10.5bn whilst Global Business Services (GBS) recorded an increase of 5.3% to $9.1bn. However, for FY20, these figures include revenue from DXC’s $2bn acquisition, Luxoft, completed in June 2019.

DXC’s decline accelerated in the final 3 months the fiscal, with the company’s Q4 losses reaching $3.5bn and GIS recording an 18.8% decline in revenue. Delivery failures and missed SLAs have hit the company hard, with a number of high-profile customers having been lost and the cost of legal settlements impacting the company’s profit line. CEO, Mike Salvino, indicated that the revenue impact of this trend was in the region of $1bn and was likely to accelerate in the early part of FY21.

TechMarketView clients, including HotViews Premium subscribers, can read more about DXC’s full year results and the company’s future prospects now via UK HotViews Extra “Salvino circles the wagons...". You can also learn more about the resilience of DXC and the Top 20 UK SITS suppliers via our latest research COVID-19 Vulnerability and Resilience.

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Posted by: Jon C Davies at 09:57

Tags: results  

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