Internal restructure costs hurts DXC Technology Australia's FY18 results
Zdnet.com - Mon 9 Sep 05:17 GMT

The Australian arm of DXC Technology is still feeling the effects of Computer Sciences Corp and the enterprise services business of Hewlett Packard Enterprise merging.

  DXC Technology Australia has posted statutory net loss after tax of AU$101.8 million for fiscal 2018, down from the net profit of AU$377 million recorded during the previous financial year.

  However, the company noted that without a number of one-off restructuring activities that resulted from the merger between Computer Sciences Corp (CSC) and the enterprise services business of Hewlett Packard Enterprise (HPE), underlying net profit would have been AU$11.8 billion, down from the AU$29 billion reported during fiscal 2017.

  "Following the acquisition of DXC United Limited and global merger with the Enterprise Services segment of Hewlett Packard Enterprise, the company implemented a number of significant restructuring activities to simplify the current business model and create synergies across all service lines," the company said.

  DXC Technology Australia, which wholly-owned 91 subsidiaries during the period, paid AU$10.7 million in income tax for the year.

  See also: Hybrid IT leads the way in HPE's revamped business strategy expenses was AU$357.7 million, down AU$368 million, the company's 2018 financial report stated.

  DXC said however, the company's revenue from continuing operations would have been in a better state coming in at AU$2.3 billion had transactions related to its internal restructure been effective at 1 April 2017.

  Following the merger, DXC Australia acquired Sable Systems for AU$34 million and Systems Partners for AU$22 million.