DXC Technology Co (DXC) saw its loss widen to $148 million, or $1.05 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $133 million, or $0.96 a share. On the other hand, adjusted net income for the quarter stood at $167 million, or $1.15 a share compared with $91 million or $0.82 a share, a year ago. Revenue during the quarter grew 4.54 percent to $1,889 million from $1,807 million in the previous year period. Gross margin for the quarter expanded 594 basis points over the previous year period to 25.15 percent. Operating margin for the quarter stood at negative 9.48 percent as compared to a negative 4.37 percent for the previous year period.
Operating loss for the quarter was $179 million, compared with an operating loss of $79 million in the previous year period.
"In fiscal 2017, CSC took major steps toward our goal of establishing a leadership position in digital transformation," said Mike Lawrie, chairman, president and chief executive officer. "Beyond successfully bringing together CSC and the Enterprise Services business of Hewlett Packard Enterprise into DXC Technology, we maintained significant next-gen offerings and Business Process Services momentum, and established key strategic partnerships. As we invested into digital and IP, we delivered revenue growth and margin expansion, as well as earnings and free cash flow growth in fiscal 2017, and have positioned DXC Technology to deliver margin expansion in fiscal 2018."
Operating cash flow improves
DXC Technology Co has generated cash of $978 million from operating activities during the year, up 21.95 percent or $176 million, when compared with the last year. The company has spent $926 million cash to meet investing activities during the year as against cash outgo of $1,180 million in the last year. It has incurred net capital expenditure of $430 million on net basis during the year, down 25.86 percent or $150 million from year ago.
Cash flow from financing activities was $93 million for the year as against cash outgo of $485 million in the last year period.
Cash and cash equivalents stood at $1,263 million as on Mar. 31, 2017, up 7.22 percent or $85 million from $1,178 million on Apr. 01, 2016.
Debt moves up
DXC Technology Co has witnessed an increase in total debt over the last one year. It stood at $2,963 million as on Mar. 31, 2017, up 12.07 percent or $319 million from $2,644 million on Apr. 01, 2016.
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