During the first quarter, Computer Sciences returned $150 million to shareholders, consisting of $32 million in common stock dividends and $118 million of share repurchases. The company repurchased 1.8 million shares through open market purchases at an average price per share of $66.34.
Free cash flow totaled $120 million in the first quarter, an increase of $50 million from the prior year. The increase in free cash flow was driven by higher net cash provided by operating activities as well as lower capital expenditures.
Mike Lawrie, President and CEO, said:
First-quarter results were consistent with our expectations for the start of fiscal 2016. Profitability improved year-over-year in our commercial business and remained strong in our public sector business, and we also delivered strong cash flow. We filed our Form 10 and continue to target October for the completion of our separation into two publicly traded, pure-play companies. Finally, our new core-banking-software joint venture with HCL and our intention to acquire Fixnetix and Fruition Partners are prime examples of how we are investing to shape CSC’s post-separation commercial business, best serve our global clients, and capitalize on growth opportunities in the marketplace.
On the books Computer Sciences had cash and cash equivalents totaling $2.20 billion at the end of the fiscal first quarter. This was up from $2.10 at the end of the 2015 fiscal year.
Shares of Computer Sciences closed Tuesday down 1.8% at $64.20. The stock has a consensus analyst price target of $73.23 and a 52-week trading range of $54.23 to $73.29.
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