CSC's new CEO Mike Lawrie believes that the troubled business 'can be fixed', despite facing significant challenges including the unresolved contractual negotiations with the NHS.
The supplier has been locked into talks with the UK government over the failed NHS National Programme for IT, with negotiations extended to 1 June after an agreement was not reached by the April deadline.
Due to the uncertainty surrounding the future of the NHS contract, CSC said it was "not in a position to reasonably estimate fiscal 2012 financial performance".
"Lacking in agreement in the NHS programme, we expensed all our activity in the quarter. No NHS costs went to the balance sheet," Michael Mancuso, CSC's chief financial officer (CFO), told investors on a conference call today.
This was after announcing a material impairment of its investment in the NHS contract in December 2011, when the company said that it may have to write off the entire $1.5 billion (£957 million) investment it made in the NHS programme.
Although Mancuso said at the end of the call that the company was optimistic about the future of the NHS contract, he added: "The company does not revolve around the NHS."
Former Misys CEO Mike Lawrie said that despite having only been at CSC for about three weeks, he could see that the business was "significantly underperforming".
"We have profitability issues driven mostly by underperforming projects [such as the] NHS and we have some business units that are not performing at the levels they need to perform at," he said.
However, he added: "The prospects of a turnaround are very good.
"I remain very optimistic about CSC's business going forward. I am quite confident those challenges are surmountable. The business is clearly fixable."