Welcome to the CSC fiscal 2010 first quarter earnings conference call. Today’s call is being recorded. For opening remarks and introductions I would like to turn the call over to Mr. Bryan Brady.

Welcome to CSC earnings call for the first quarter of fiscal year 2010. We hope you’ve had a chance to review our financial results which were issued earlier this afternoon. With me today are Mike Laphen, our Chairman and Chief Executive Officer and Mike Mancuso, our Chief Financial Officer. As usual, this call is being webcast at www.CSC.com and we’ve also posted slides to our website to accompany our discussion. On Slide Two there’s a reminder that statements made during this call that are not historical facts may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties which could cause actual results to differ materially. Additional information concerning these risks and uncertainties is contained in the company’s filings with the SEC and copies of these filings are available from the SEC, from our website and from our investor relations department. Slide Three acknowledges that CSC’s presentation includes certain non-GAAP financial measures. In accordance with SEC rules a reconciliation of these metrics to GAAP metrics is included in the tables of the earnings release and in the appendix to our slides. Both documents are available for your review at the investor relations section of the CSC website. Finally, I’d like to remind our listeners that CSC assumes no obligation to update the information presented on this conference call except of course as required by law. If you’d kindly move to Slide Four, I’m pleased to turn the call over to Mike Laphen.

Today I’m again pleased to have the opportunity to speak with you about our first quarter’s [inaudible]. As I outlined in our last call, our objectives for fiscal year 2010 are to continue to position CSC for future new business opportunities and profitable growth while also improving this fiscal year’s operational and financial performance by continuing our focus on cost management and cash generation, by continuing our solid operational delivery particularly on key programs such as the NHS and by removing risks and uncertainties surrounding our current and future performance. As Slide Five summarizes, our first quarter results demonstrate meaningful progress against our objectives. For the quarter we delivered GAAP EPS of $0.85, up 8% from the previous year and considerably ahead of our guidance for the quarter. We also continued to improve our [inaudible] margin performance with an increase of 46 basis points over our first quarter fiscal year 2009 result and we achieved cash performance slightly higher than our expectations and delivered bookings of $3.5 billion. We are pleased with the results of our operating margin improvement program particularly since we believe they are sustainable as they arise from operational efficiencies and improvements, work force rationalizations that are consistent with the dynamics of our markets and increased leverage from our global work force and delivery infrastructure. Our revenue performance up $3.9 billion is in line with our expectations. Year-over-year revenue declined 2.5% in constant currency and as normalized for the extra week in the first quarter of fiscal year 2009. Operationally, we continued to deliver results for our clients. For the NHS we completed the activities scheduled within the quarter and we continue on pace to achieve our next key milestone. In May we successfully completed the second phase of the US Army’s logistic modernization program or LMP…

It is also my pleasure to have this opportunity to share with you our perspective and insights on our first quarter results. As Mike Laphen indicated, we had another good quarter having met or favorably exceeded all of our key financial metrics namely: revenue; earnings; margin rate improvement; cash flow; and our days receivable outstanding or DSOs as its referred to. This first quarter’s progress is a solid first step and a very important step towards meeting the financial targets for our fiscal year that we outlined for you in May of this year. If you’ll turn to Slide 12 you’ll see essentially a repeat of the highlights from the press release and Mike’s comments. Revenue of $3.9 billion is where we thought we would be and needed to be to meet our full year guidance of $16 to $16.5 billion. OI or operating income margin was 46 basis points above last year, a result of our cost management initiatives with our intensified focus on execution, and again to remind you we are looking for a 25 to 50 basis point improvement in margin rate for the year. I’ll talk to EPS in more detail on the next Slide. Free cash flow was -$462 million and although unfavorable to last year’s first quarter was in fact considerably better than our internal forecast. Lower receivables being the biggest contributor. Our DSOs dropped by four days which gives us comfort that we can achieve the four to five day improvement goal we set for ourselves this year. We do still expect free cash flow for the year to range between 90% and 100% of our increased net income. Turning to Slide 13, I’m sure there’s going to be some keen interest in understanding the EPS performance above our guidance. About 90 days…

(Operator Instructions) Your first question comes from Bryan Keane – Credit Suisse. Bryan Keane – Credit Suisse: Just looking at the operational improvement of the upside to the quarter of $0.10, can you just talk a little bit about what that was and if that was repeatable going forward should we see more operational improvement upside in quarters two through four?

Bryan, it is repeatable but I want you to keep in mind we had already factored significant operational improvements in our prior guidance and we have it embodied in our future quarter estimates. What we saw in the first quarter was an earlier than anticipated benefit from those initiatives. So, they are repeatable, we got it a quarter earlier. Bryan Keane – Credit Suisse: I’m just going to sneak in one question, tax rate does that mean the tax rate will stay at these levels when we model out for fiscal year ’11 and beyond? I know that’s kind of a tricky question but just looking for a little guidance on that?

Well, it’s hard for me to sit here and forecast tax rate for beyond FY ’10 particularly in light of the tax changes that are being contemplated by the current administration. Having said that, we’re focused on our tax rate, we have benchmarked our industry, our tax rate for our industry is in the neighborhood of about 31%. There are obviously some significant swings in that but ballpark is around 31%. I think it’s possible for us to continue to work in that area to find opportunities and notwithstanding changes in tax legislation I would see us staying in the range we’re in right now, if not improving.

Your next question will come from Jason Kupferberg – UBS. Jason Kupferberg – UBS: A couple of questions, first of all on the bookings outlook for the year I know you’re reiterating the $17 to $18 billion, can you talk about the step up here from Q1 levels? Based on what you see in the pipeline do you think this will be more back end loaded in the fiscal year to get to that full year target?

Yes, I think it will be more second half loaded. As we look at what we have in the pipelines and as we mentioned the pipelines have improved and with the business we’re pursuing, we think those numbers are quite achievable. But, it will be more back end loaded in the second half than towards the front end. Jason Kupferberg – UBS: What kind of commercial versus government split would you roughly expect out of that $17 to $18?

We’ll have to get back to you on that.

Your next question comes from Analyst for Tien-Tsin Huang – J.P. Morgan. Analyst for Tien-Tsin Huang – J.P. Morgan: I wanted to ask about what you’re seeing in pricing in the market in the different businesses? And, just a clarification, it looks like the EPS range got wider, was there a change in the visibility that drove that?

As far as the EPS range is concerned David, we’re obviously optimistic about the second half of the year. That having been said we still have a lot of runway in front of us so we’re not hedging our bets we’re just presuming that there will be timing and variation in the second half of the year and we’re just more comfortable with a broader range.

Your next question comes from Julio Quinteros – Goldman Sachs. Julio Quinteros – Goldman Sachs: On the operating improvement $0.10 component of the improvement for the quarter, how much of that is attributed to the renegotiation of the UK NHS contract?

We don’t speak to renegotiations with specific customers and the impact there. But, I don’t think you should consider it a factor.

Your next question comes from Rob [Bersua] – Bernstein. Rob [Bersua] – Bernstein Our checks on the NHS contract suggests that the Derbyshire mental health site which is one of the early adopter sites for your LORENZO system, apparently they’ve decided to pull back on their plans to implement LORENZO and their citing essentially that they want systems problems resolved before they implement the full LORENZO system. I guess I’m wondering if that will at all affect the payments that you received in the March quarter related to the early adoption milestone on the NHS deal?

I’m not sure that information is current that you have. That’s certainly not my understanding at the moment. Rob [Bersua] – Bernstein Is LORENZO continuing to be deployed at the Derbyshire mental health site?

My understanding is that’s on schedule to do so. Also, my understanding was the final decision on that has not been made but our understanding is it is all systems go and we’re marching towards that path. We’re pretty pleased with where we are right now on that path. Rob [Bersua] – Bernstein I guess the real question is, is there any contingencies related to the payments you received in the March quarter related to that milestone to the extent that the deployment of LORENZO at that particular site gets delayed or postponed, are there any contingencies related to those payments or is that payment essentially in the bag?

As we’ve always said, we get milestone payments, that milestone is a significant milestone and we need to achieve that milestone to get our full anticipated payments from NHS.

Your next question comes from Karl Keirstead – Kaufman Bros. Karl Keirstead – Kaufman Bros.: I’ve got a question about the BSS margins which if I’m correct came in at about 6%. Do you believe that’s a low that we’ll see in fiscal ’10? And, is your 25 to 50 basis point margin improvement predicated on a significant pickup in that 6% margin in the BSS unit?

First quarter is always a low margin quarter for BSS for a number of reasons one is the number of billable days in the quarter is substantially down. The second thing is typically licenses are lighter than normal in the first quarter as well. Also, whatever restructuring or rationalization charges that we take in that business unit, we typically do in the first quarter as well. Yes, we do expect that to improve and yes, we do see that participating in the improved margin performance of 25 to 50 points. Karl Keirstead – Kaufman Bros.: As a quick follow up, on the last call you mentioned the BSS unit was showing signs of stabilization yet it feels like it might have weakened a little bit further. Did anything in your judgment or perhaps what changed in the quarter that you didn’t get the stability that you called out last quarter?

I don’t want to reflect that it’s not stable. We don’t see the uptick yet but I would still characterize it as stable except for possibly the German market which is a bit more stressed than others. But no, I would still characterize that business area as stable and we’re anticipating, we’re seeing signs at least that we could be cautiously optimistic about upticks in the second half.

Your next question comes from Analyst for Tien-Tsin Huang – J.P. Morgan. Analyst for Tien-Tsin Huang – J.P. Morgan: I just wanted to follow up because I was hoping to hear about the pricing environment for each of the different businesses?

Well, the federal business is what it is, it’s not impacted by the broader macroeconomic commercial picture. The outsourcing, we haven’t seen any substantial changes in pricing levels there and thankfully actually on the discretionary BSS side, the billing rate has held up for the last several months so I think that seems to be stable at this point. Analyst for Tien-Tsin Huang – J.P. Morgan: If I could just get a clarification, the revenue guidance was unchanged and the margin guidance was unchanged and the EPS is up, so how much of the increase in the EPS guidance is tax, how much is operations and how much is other?

If you did the math from the 37.5% tax rate we guided to before to the 28% tax rate guidance you’ll see the lion’s share of the EPS improvement in guidance is coming from tax. There is a modest amount of operational improvement also in that number but the lion’s share is in the tax side.

Just to go back to that earlier question on the bookings split between our commercial business and our public sector business, I think you could look at the public sector at or around $8 billion and the remainder on the commercial business.

Your next question comes from Ashwin Shirvaikar – Citi. Ashwin Shirvaikar – Citi: My question is on the cash flow impact from the lower tax rate if you could comment on that? Does that pretty much flow through or is there a difference?

Well it will pretty much flow through which underpins our guidance that our cash flow would remain at 90% to 100% of our increased net income so we’ll also get a cash benefit out of the tax change. Ashwin Shirvaikar – Citi: And that’s ratable through the year?

It will be ratable through the year Ashwin. Ashwin Shirvaikar – Citi: Going forward, pension gain does it step up from the $0.06 impact that you had in the first quarter or does it stay about the same?

Pension gain is about $30 million plus for the full year. That was intended to be for a three quarter period in FY ’09 since it kicked in in July. We still expect it to be at that level plus or minus not a significant amount but $30 million so you can do the EPS math on $30 million pretax.

Your next question comes from Rob [Bersua] – Bernstein. Rob [Bersua] – Bernstein: Just a few follow up questions on the cash flow assumptions, can you kind of give us an update on your DSO target for the year and your cap ex plan for the year? Then, whether there is some incremental pension benefits from maybe freezing benefits in Europe? I know that was one of the topics that was up in the air three months ago, how the European pension would play out over the course of the year. So, DSO, cap ex and pension assumptions that might affect cash flow for the year?

Well, DSO first, we targeted a four to five day improvement, we expect to achieve it and it’s factored in to our guidance. Cap ex, would ballpark, I don’t have the number in front of me but, about $1 billion in cap ex. Again, that kind of a number has been factored in to our guidance. As far as the pension in Europe is concerned, what we said was that we were looking at that, dialoging with the various works councils in the various countries England, Scandinavia, etc. We don’t have anything new to report on that front right now but it is a work in process. We’re hopeful at some point in the future we’ll see some benefit from altering the pension scheme using the British term in those jurisdictions and those geographic areas and we’ll get some benefit out of it. So, it’s on our to do list and it’s being worked. Rob [Bersua] – Bernstein: I’m seeing a lot of questions from investors on the tax rate, I know you can’t really forecast tax rate well in to the future but is it feasible that a 28% tax rate is sustainable kind of beyond this year? Is there a reason that your structural tax rate would be that low on a sustainable basis or is that at the low end of what seems realistic longer term? How would you look at that?

Well again to qualify by not knowing what our current administration is going to do in that area, absent that or setting that aside for a moment, our peer rates are in the very low 30s kind of thing. Obviously, we are in enjoying right now a tax holiday in India that will expire next year, that will put upward pressure on the tax rate unless it’s extended. But, we’re still looking and we’ll continue to look. A long winded answer to say is 28% doable? I think it is but if I had to bet the farm I don’t think I’d stick my neck out that far next year until I find out what’s going to happen here domestically.

Just a follow up on that NHS question, thanks to our communications, I’ve got a hot response from over in the UK, Derbyshire from our people’s perspective over there is not an issue. Derbyshire is committed to LORENZO but pushed it out a bit. It wasn’t planned in this quarter and it’s a small trust with no impact on the milestones. The key trust by the way is Bury, that’s where the first adopter site has been selected of the go forward on the November milestone. Rob [Bersua] – Bernstein: But any case, this was one of the earlier adopter sites and it’s been delayed but they’re still going to deploy it in the long run, that’s the way to look at that right?

That’s correct but, it’s a minor trust. I think the one you should be focused on is the November milestone and that’s the Bury trust and my understanding is that they have agreed to go forward and we’re marching down that path. Rob [Bersua] – Bernstein: That’s what I’m picking up too but the payments in March weren’t at all related to the Derbyshire system? And, I’m assuming by your comments that there’s no contingencies in those payments related to Derbyshire and this delay at Derbyshire won’t have any impact on monies that you’ve already received?

Derbyshire would be totally insignificant in terms of our cash planning. The one that would be of significance is Bury.

I think we’re at the end of the question session and I’d like to hand the call back to Mr. Laphen to close off.

Again, thank you for your participation today. Before I close I’m pleased to inform you that CSC will be hosting an investors’ conference where we will provide an update on our business strategy in New York City on the 18th of November. A press release will be forthcoming with the appropriate details. I hope to see you all there. Have a good evening.

This does conclude today’s conference call. Thank you for your participation.