Computer Sciences Corporation (NYSE:CSC) Q3 2017 Earnings Conference Call - Final Transcript

Feb 02, 2017 • 05:00 pm ET

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Computer Sciences Corporation (NYSE:CSC) Q3 2017 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Yes. Thank you. [Operator Instructions] And we'll now take our first question from James Friedman with Susquehanna Financial Group.

Analyst
James Friedman

Hi. Thanks, guys. Paul, I'd ask you a yes/no question to save your voice. But I remember earlier in the year, there were some costs related to standing up BPS, and I just wanted to double check on that. Where are we in that journey? And Mike, I'll ask you one up front as well, if I could. We get a ton of questions about H1Bs, Mike. If you could just give us like 30 seconds as to your view. Is the H1B environment a good or bad thing for CSC? Thank you.

Executive
J. Michael Lawrie

Yes. On the BPS, I'll answer. Paul, I'll try to save you. We're continuing to invest in the BPS platform. So that's ongoing. It's going to continue certainly through this year and candidly probably into next year, and we'll see that moderate over time. But we're acquiring new clients or converting those clients and putting them in our platform. So we're really sort of full speed ahead in that business. We like that business. And as I commented, we were able to take the first tranche at MetLife live, so we're really moving along, and we got another customer last quarter.

In terms of H1B visas, let me try to put this in context for you because we don't really think it will impact CSC. We've got roughly 22,000, don't hold me to these exact numbers, but roughly 22,000 employees in the U.S. About half of them are in other locations, in other words outside of the U.S. So, that leaves us with about 11,000 employees on-shore, if you will, in the U.S. Last year, we were granted a little over 500 H1B visas, and we're applying for, I think 700 or 800 next year. So, this is just not an impact at all to our business going forward.

Analyst
James Friedman

Okay. Appreciate the color. Thank you.

Operator
Operator

And we'll now go to our next question. Our question is from Jason Kupferberg with Jefferies.

Analyst
Jason Kupferberg

Thanks, guys. So, just curious about the EPS guidance range for the year, I mean, kind of wide, I guess, for Q4. Where do we think we may land there? You obviously had a really strong earnings number for the quarter itself. So, I know last quarter you were saying maybe lower end, but how are you thinking about it now?

Executive
Paul N. Saleh

I think we're still in the lower end of that range because of the -- again currency headwinds. Also in this quarter, we had the benefit as Mike mentioned, of the mix was favorable, particularly in our software-related businesses. But net-net, given where we are and the higher tax rate at this point in time, we're just really -- our bias, as we said, would be towards the lower end of the range, which would make the fourth quarter pretty much in line with -- fourth quarter in line with the third quarter, somewhere there.

Analyst
Jason Kupferberg

Okay. And