DXC DXC Technology

Shailesh Murali Investor Relations
Mike Salvino President and Chief Executive Officer
Neil Manna Senior Vice President and Corporate Controller, Interim CFO
Rod Bourgeois DeepDive Equity Research
Ashwin Shirvaikar Citi
Lisa Ellis MoffettNathanson
Jonathan Lee Morgan Stanley
Call transcript
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Good day and welcome to the DXC Technology’s Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Shailesh Murali. Please go ahead, sir.

Shailesh Murali

Thank you and good afternoon everyone. are XXXX for earnings you quarter Technology’s that year fiscal call. pleased joining DXC us second I'm

Relations Salvino. to Technology Technology's listeners presented as included XX-K the now, uncertainties, DXC and tables that on information results like make introduce our Our these unknown speakers is to Manna, our and the call, other except release SEC no we will website. on and Financial and slides. cause webcast includes respective could update uncertainties participants non-GAAP be and Mike our from GAAP that comparable forward-looking. call, President I President President and believe law. Investor today's comments certain you'll call. the the Report required DXC’s SEC filings. Corporate discussion Officer. call slides that have a will on like DXC our reconciliations financial found Slide known and These Chief X, and discussion will we includes being rules, in in Form we measures. our of our Officer; DXC X to today. the be This And Executive of informs the with will provided call After statements On the differ A CEO, and are webcast to see reconciliation be remind included Interim would section webcast accompany Slide Neil risks to Controller, which In our most These on expressed subject information Technology's is today's obligation actual certain provide I'd can materially Vice those which their of call Mike? and directly in and on Annual Senior earnings post on accordance we these risks to Chief investors. by Mike at the assumes Salvino, these that slides presentation useful measures to measures

Mike Salvino

the you appreciate And today's I on going we're the will families And you hope to today. performance. call are everyone making I giving QX on Shailesh. highlight strong by I your update Thanks an call joining progress our transformation then our doing well. start I'm and journey.

QX strong focused three are on executing driven performance areas our was and market. Our transformation cost seize by optimize key which against the customers, of journey our

I and our will over hand on Next, then guidance the alternatives results I'll our call discuss initiative, QX QX. made the financial for have share to Neil progress and good we strategic to

remarks pleased delivered Finally, make call how sequentially, achieve I to closing and stabilize will some up for with before I'm X.X. book-to-bill of QX a strong improve executing against very our We and plans are opening revenue quarter-on-quarter, we the margins a questions.

the billion For trend our exceeding like continue stabilization revenues revenue QX, $XXX quarter-on-quarter $X.XX our in of top is to for on a end guidance QX The basis. like by were million. expected

in and Services optimization Health Now at highlighting our DXC, basis. continue Adjusted EBIT the quarter margins success cost program. end of our X.X% excluding market. to And for say in Like when and US effectiveness a like QX came mean I higher customers people focuses and or X.X expand our for Local like top I the book-to-bill to bringing which expect underscoring to on and revenue we the margin like was the new on for Human business. our the also the than State like guidance the

on achieving transformation book-to-bill We stability our of achieving expect this trend journey. of to in are by the QX. continue X.X I'm about level a excited executing we

without taking win in to the market. we're strengthening, disruption, are relationships and continue customer out Our cost we

transformation journey customers. with making update progress of our the on the key Now starting you are with we let areas me three

and focus for customers we to deliver to relationships. renew sequentially. revenues our and primary we Simply customers stabilizing is new the trusted work. on for turn put, work are when us and pay Our build continues off reason They existing

give let me examples. you couple a of Now

a BP is us, standing long reimagine going under transformation and relationship reinvent energy. CEO own with BP to through new have We BP like journey their a

time. Finance along help that recent technology their the we then long on We quarter-on-quarter. which we standing IT And gives enable to BP cloud, can supporting selected continue migration win were and to and assessment two Ministry retirees modernize and customer; services a platform, paychecks we run move others receive their examples data automation continue stabilize exit. driving with greater Denmark's into from to to their are with and now to to operations. These is their of pensions will another confidence flexibility center employees us revenue their

driver area X.X%. of of margin We're of The goal our EBIT million our track our adjusted second transformation key of main $XXX the is QX optimized is cost journey achieve costs. to savings this which on year, in

to On to We expand in reported a points plan QX margin basis. from on roughly basis like improvement we to QX looking for as an expect or basis, margins like it of QX. continue XXX to deliver at

the working. new new either new that XX% we In adjusted the our customers our Local business, we the are I'm we our roughly are of at with $XX contributed market evidence expect disruption. quarter. to and of work area is plan EBIT customers. margins even were remain are costs customers. or and our quarter area, and that pleased in million on relatively to State We without renewals third bookings But from how key QX and QX winning our Seize transformation adjusted the this Services Health the is sale between our further were number the to and very existing delivered of optimizing this delivering accounts is book-to-bill for selling cross we flat US which QX journey. EBIT Human X.X XX% focused with while existing work

accounts. long a cross examples I've given of of As you to couple selling existing standing

known couple brands where work new Beam of well give Beam for a its In as we me and from Jim won such recently we examples security as new let customers. Mark. established Suntory signed the Maker's of area you customer Now a

welcomed Foreign We Department also of Trade. Affairs Australia's and

provide services posts We PeopleSoft locations and three XXX over worldwide. country across SAP next in the and years nine will

our by in consistent encouraged our And greater a are this book-to-bill or in X.X area. expect We achieve success we to based pipeline, QX. on of qualified

I Health and progress Human and businesses The define the are a Now made four Provider discuss the of and Healthcare DXC. I'd alternatives under fourth. good our later in on We have business, like the business, after this BPS. workplace with added Shortly initiative initiative. businesses Services three to consisting and strategic review started Software horizontal Local US mobility State we

transaction minutes. structure business As I thank we the X. $X.X women to Local Capital of will net comfortable and strong proceeds and feel transformation have billion journey. a committed, liquidity want to this Health We few our incredibly use on October of Neil this talk the capital men Human that journey. transaction, Veritas in and hard more execution State we was sold the to Services a for to who on This transformation our a worked now And pay major $X our debt. down about continue US balance our we billion financial milestone and the of we in flexibility sheet

by Provider we and pay mobility retain down strengthening BPS horizontal business Software transactions both to and proceeds end remain on decision the fiscal to our million, the This $XXX track Dedalus to of Healthcare decided of year. We've use the from sale debt the about our strategic also completes the lose net close workplace initiative. these to will data by We the further balance alternatives sheet. businesses. Again,

We two more are transformation our value sheet receive potential journey by that applying businesses as these we with a strong as can analysis the balance create retaining we from of buyers. to these businesses and interest compared our result our

and alternatives their with strategic to initiatives, been clarity operating were we're now these journey businesses operating two being improve the our to these transformation and businesses to ring-fenced contributions of DXC. apply able uncertainty; with element looking an financial forward During have

devices as nearly result by where are remotely. support Regarding employees the to our need working Xx of business efforts, into manage our our a nicely demand workplace, nearest created to market with fits COVID-XX, cross their selling that now competitor, customers especially we the the of leader

prior I'm to my industry, in forward competing and I've value, market working additional experience create to in known looking the again that BPS team with Given years. our a BPS for

bring team. talent. can deliver on helping and driving of business team attract is results. a top leadership Now, talent to that to develop team. I'd have our in shows September financial is The in leadership we announced and industry the leadership our like The This hard strong worked team we caliber senior strong comment changes evidence Organizational that DXC momentum this top us

in as and Now term. to detailed period. Neil appreciated to into been transition CFO. over search looking the I'm I are for near leadership, true a I've the thank this our stages, his the partner conducting role. we next this and stepping final concluding for forward CFO want a interim search he's in We're

Now, to let me turn the over call Neil.

Neil Manna

everyone. pleased transformation with to journey. make our and Mike, Thank solid on am the I you, greetings, also progress continue very we

initiative. well both second execution expansion. our EBIT margin top We and end the sheet strengthen exceeded revenue delivering executing quarter-on-quarter our adjusted to We guidance quarter revenue our our and customers. our Financially, alternatives on strategic for sequential stability We of and are of the margins. featured balance

commit continue committed to credit to profile. it be grade We investment an to

we are excluded cost of book-to-bill covering In $X.XX to a financial I second share. results. winning X.X. will non-GAAP as the or pretax are $XXX We now start second restructuring programs from had the results million evidenced our costs ratio quarter, quarter diluted previously. turn and primarily marketplace items by These that optimization by relate also in basis, our the our of we details on per discussed costs the to

a separation QX, in costs, of Looking a quarter, and costs to related spend review. and pretax expect result of the be share with for $XXX had cents in million on intangibles to $X.XX quarter. quarter, and Services to we per related external In Local of $X.XX we business. the or on had $XXX under that and US quarter, per integration separation between acquired we Health amortization assets tax as million share. these increase driven primarily the expect $X.XX costs per restructuring Also adjustment sale cents $XXX Human $XXX strategic the and the pretax with forward contributed we basis, transaction, transaction Also was by diluted diluted associated associated million the share. or QX, million a diluted basis, State our primarily a charges second of In the the

income special EPS and quarter cents. the the of impact for million $XXX from before the non-GAAP was items non-GAAP $X.XX operations taxes Excluding diluted continuing was

of rate tax EPS quarter Our this XX%. a by diluted lower expected impacted non-GAAP was than

tax results a in detail. for diluted been Assuming August EPS will more now go our non-GAAP of in our the with XX%, second rate I would line through quarter have guidance $X.XX. quarter our

all always, currency the Revenue incremental in basis, I US was discuss quarter major will currency. be dollar million constant sequentially, benefited year-over-year. tailwind of revenue comparisons in currencies. GAAP Currency sequentially of revenue billion. about revenue weakening from $XX and against X.X%. the $X.X will $XXX in On was the constant by As an declined the quarter million a

Our revenue last in customers, business, provided quarter the was and focus the our Adjusted execution. our continued reflecting guidance earnings was you better than $XXX quarter for on we and million. EBIT resiliency the our operational during people of the call,

our from benefits cost that cost target EBIT savings in a run to adjusted rate reflecting on Our achieve in X.X% million the optimization target track our of to program. are pleased of continued say of I savings cost was $XXX we execution million. am $XXX margin

in XX% spoke Non-GAAP I than of $X.XX quarter our the than quarter, rate higher bookings in the were about X.X. In a in of for the tax of diluted we EPS EPS from diluted non-GAAP expected the of billion previously. second guidance August. top benefited came $X.XX you end Our gave book-to-bill lower that

driven GBS business. GBS also now for basis margin reflecting BPS by second layers stack. quarter, engineering horizontal Turning includes for Health $X.XX sequentially, The now. profit first segment, X% a business. we enterprise, revenue a second down The segment of applications the GBS GBS million will bookings and action $X.XX XX.X% was Human over and billion a are and $XXX up the quarter, quarter. price I two the that and retaining State businesses. customer XXX our the settlements quarter. representing includes technology to and was our X.X%, the was segment in Services which X.X. includes and the the Luxoft our book-to-bill strength GBS US and for GBS points Software that were segment top in start billion with Healthcare the was profit revenue Analytics improvement asset GBS segment Local terminations was also quarter results, Provider the we of the with along which Year-over-year, the prior In downs, our

a the and points to segment million $X.XX enterprise our retaining. now of quarter. actioned the Turning margin ITO and mobility and consists GIS down was profit our over driven improvement GIS book-to-bill workplace billion was our we also stack. XX The year-over-year. in XX.X% terminations $X.XX X.X%, along segment second includes we for technology and of the in quarter, prior price was our revenue segment primarily settlements, previous It are cloud the bookings X.X. in billion sequentially, GIS X% customer for security $XX downs, GIS layers, with a segment, by quarter. which quarter and the basis business, a was second and declines GIS quarter profit

of on technology Now on security, and focusing let me cloud comment ITO, the applications the I to enterprise start stack. and and you engineering. layers like our performance analytics four by

the time of book-to- direction the across will with right the and journey executing layers four along in the moving the circles spent majority with the have quarter-on-quarter, our numbers transformation bill. you are healthy a We all notice our totals

movement revenue we quarter-on-quarter that about This demonstrates stability trend earlier. talked the

previously. price each revenue down was X.X% settlements Now the specifically; X.X customer let XXX% growth down me was quarter downs of and year-over-year. year-over-year we in reflecting and discussed layers on Book-to-bill the driven comment by bookings in the the terminations, XX% sequentially ITO

X.X% bookings We in up trends was our strength sequentially the layer and QX ITO are are growth in by Cloud of revenue the encouraged progress quarter. X.X we was security decline, the QX down book-to-bill X.X% pipeline. qualified by sequential evidenced making over and as revenue in the year-over-year, and

the incremental stack stack X.X% downs primarily driven discussed price is last the layer that for were and by layer was terminations applications up the point quarter the down in analytics year-over-year, quarter. Moving X%; X.X% the was sequentially this year-over-year. down X.X. the X.X to stack, layer performance decline sequential up the was of the Luxoft sequentially was The book-to-bill X.X% the quarter, book-to-bill revenue and driven business; of In revenue by was and engineering of in

new Despite was X.X% they initiative. with and and rest now outcome put of related now portfolio. businesses our awards will customers demand, sequential the mobility not of that uncertainty as workplace retain strategic Book-to-bill alternatives on strong associated the BPS the The was comment certain to me ratio by project quarter. these were X.X and the I business. are start retaining. primarily Let going clarity on the hold horizontal with driven we work decline of or for offerings we waited on business whether in their

we are the pipeline the marketplace. Our and remains strong, in excited opportunities about

Services review. the business business strategic year-over-year; under and X.X up businesses the X.X% and Human sequentially was Healthcare XX% Provider this was quarter. year-over-year; for State business the DXC's US by to Health now the Local In X.X% ownership, sequentially, was ratio book-to-bill in and The book-to-bill and X.X. grew Software quarter X.X% last Turning under up

Turning to highlights; the million. cash free came other adjusted flow at in quarter our financial for $XXX

large Our sale one In in and flow two to we of by lower adjusted both US capital QX. Human conjunction businesses. adjusted time free QX, expect management Local be Health with benefited impacted flow CapEx from cash free outflows the cash Services and working versus our

one a second with repurchase conveyed is time business. The the license $XXX software divested purchase is million the receivables, first of securitize and of of a a that

Cash the second of the were the in on our quarter for quarter billion payments the capitalization XX.X%. of ratio debt capital total million X.X% the $XXX of was to billion. the end capitalized of revenue. debt capital $X.X a including leases or was end expenditures, net including At at leases Our $X.X total quarter,

$X the and commercial billion During This loans pay consisting repayment term the included and draw, another of $XXX of paper. down we second $X.X billion debt. of million of revolver quarter,

our now and close State Health Services our following sale Veritas the update business US to of and of me Local capital give the Let you on Capital. an structure Human

and were proceeds of these closed October we transaction gross debt. billion $X X, used the As billion; of proceeds pay to receive on down $X.X

advisory this and In fees the to used separation third $X.X related mentioned of software part to have we billion remaining the million and for about as repurchase to receivable and also I securitization addition purchase taxes activities. earmarked a close, that $XXX earlier. The facility been party license proceeds

credit revolving has full. Our facility paid in been now back

We $X to have line access entire credit at the be discretion. drawn billion of our to

of billion separation respectively. for $XXX to for taxes like balances cash cash of receivables sequentially and $X.X and $X.X of QX and billion excluding and like and In debt expect estimated of debt million expenses, the revenues and repurchase we on adjusted earmarked repayment closing, transaction are billion Following securitized basis. $X.X our stabilize a

for discussed Human US like As means previously, State and Health Local business. excluding Services like the and

targeting billion. should $X.XX third to as basis. on margins with $X.X roughly quarter reported we Adjusted basis second quarter broadly for basis, of the points. to QX expect are the expand line quarter EBIT We like third billion a an On revenues in margins in XXX like be

adjusted are reflecting third cost X.X% quarter-on-quarter margins, and X% stabilization of contributions the We additional revenues to optimization in from quarter, targeting our initiatives. EBIT

EPS diluted We XX%. expect to about upon the an effective $X.XX be of rate our based to third in non GAAP quarter tax $X.XX

guide managing a to quarterly of basis on continue are we a number We variables. as

applying are businesses now our and we transformation are two journey we We retaining. executing that on now that are journey to

impact potential will best the numbers call now wave guiding few or for Provider on COVID. currently. the turn and of from Also, have we are still we a the visibility that I business. you Mike to Software With a the Healthcare closing about the are Hence, sale months are of his unclear to closing We we away next remarks.

Mike Salvino

four Neil. me making takeaways key let DXC. And are on progress we at Thanks, share our

the and on book-to-bill the to is in we number our translating bringing into DXC momentum in have expansion we're market, quarter-on-quarter new sequential of First, a executing stability, margin revenue transformation journey. demonstrated solid This X.X.

we now State using Services $X.X Second, US to billion Human strong business down proceeds in pay and and a to have Local net of sale and due the Health balance the debt. sheet the

proceeds and We end the further sale fiscal year of complete the sheet. business our of Provider the the to strengthening Software also the pay expect balance Healthcare down use again by debt to

we we create value to the We're leadership horizontal our keeping pleased is our contributions DXC. in transformation I'm believe our we customers have two by more the new apply they In making we Fourth, order a team people. to ability DXC the built very are level to can about about achieved. on that and to transformation bringing closing, In stability progress Third, our workplace these have strong the businesses. businesses. financial to improve excited BPS executing journey, journey and of the the

are without improving Our and relationships, in sheet our market disruption, out enhancing balance are is we're more. our winning we costs stronger, we customer and the position taking

Q this in all And to the with momentum questions. positive expect X. We call please up continue that, operator, open for


first from Rod comes queue [Operator in Equity DeepDive Research. Instructions] Our question with


Mike. All right. Thanks. Hey,

I over the didn't did topic troubled about the accounts account for few today. So that was notice main troubled update talk you your DXC in quarters. last

concerned troubled relationships troubled? considered Or at to extent ask, about accounts accounts? its point? are clients DXC's with were your So status this that the like large these at least And I'd at previously what's you to what


in biggest I without are my so moved and that. my about And Right, say out I XX with obviously troubled when think phase. mind the Rod. achievements our customers. in XXX of Okay, communicated reflect And just balance XX. focused on, at the that now our it's past year were fixed top the them disruption. not we're first sheet on focused that so Look, our on we're I I XX strengthening with back with to my XX my mind, around two delivering would DXC, I we've in we're focused our enhancing right accounts say on. relationship and when customer accounts, It's When thanks,

sure seeing reaching along so listen is quite the seeing to just Second people to right the hey, needs And is just in ITO last to them, right, just needs. this on space out narrative, them. cross we all we're now, we're can And lot want their selling focused proactively the to we're thing works. of transformation that technology a of a can with then work, demand bit the but of you make technology

part the pleased more. that So winning people we're we're why a of us thing, talk And starting is momentum the of new our discussions about I brand the them. that's DXC. that's in are market lot And to that great, seeing think having Rod, mentioned about was the we now and with of improving I because

So, Rod, we've momentum we're the right But area. think accounts. customer And definitely progress. the troubled calls making good, look, on making the in we're good I is side, customer the moved beyond


the All I'm a layer did cloud somewhat prior from looking the great. trends is follow And in your lackluster stack; industry. to here. But growth that then right, of cloud at relative big improve one growth your quarter. of up, clearly the this growth trend, is in cloud And the cloud just

turnaround outlook I'd there. like know business us doesn't So about your I But cloud its color ask happen there your and can overnight. for you to on give Thanks. DXC's cloud a some business? growth strategy the


the -- it is that's expectation we at stack. is the layer, can revenue where see fixing selling the I we numbers, relationship in But so like the which with terms get through just run going business we're a been to Okay, stabilizing GIS, as when and that, right, which Rod, talked customers my ITO customers, that off. has has where traditionally Most of GBS in deeper focus had look the stack, the as both about these looked are and we at up build the you has my of in better been. we most

at is what and Neil add security transformation together. our those you applications, you I up when analytics, cloud spent question. look thing and So whole, last That a on when ITO, the quarter-on-quarter all mentioned where And quarter, negative X%. is majority the our all no at was of growth the we've engineering, and time as look journey,

Now positive a two of out it's growth negative X.X%. have those And trend. four,

focused well. back I'm roughly and applications also engineering I'm book-to-bill. to going layer, as It's from cloud obviously, analytics said, engineering, like But So XX%, your question But focused got that and I and strong X.X%. momentum. on on Cloud. like you went to analytics a that

I as real. is think we into it's get asking for QX. the and one are there. momentum an continue like And that saying clients other. will The is I've other. strategy. ITO always one the strategy said, or And or not our And not help It's we're business

and cloud. do We have that do to the

So I with surprised now, quarter. pleasantly was the when cloud it growth last negative was actually


from in go with queue comes next Reina Please Our Evercore. question ahead.


bit the up greater question into one my front, Good book-to-bill about you follow a thanks strength the sustainability the a that well. can strong the you little or of your going you. for forward? question. Can if to talk bit of into converting potentially taking really And and XQ ask pipeline as about see up little book-to-bill It's Thank times that in good evening, revenue. then I'll timeline my going and talk


So, for Reina question. thanks the

And we two out other complete. the got still But assets as like quarter. our this you bringing Neil quite see greater businesses of the right, pipeline, out managing what still the I quarter. then, focused we're bullish also COVID-XX in we see numbers one the book-to-bill, we're of on can a laid book-to-bill there terms have obviously terms pipeline. and of We're we we in still put a transformation In QX. journey stack, next terms the I the Right? We're our With against mentioned very guidance. of we're for why that next about executing to looms down a that solid that's the X.X do few across wave. things for in here, very solid that is book-to-bill because

QX. going was it that so in continue And to


from Shirvaikar comes Our next question with Citi. Ashwin


once Hope that Thank perhaps update guess to should a a bit of that's and looking is in expect? done, we the an sort about to the terms spoken terms hear you the improvement, from you, the revenue higher pivot guys. in Mike, what's mix margin you. of trajectory you're little organization services. good well, portion Can my sort past, ask I simplifying of value de-layering to of question there for at about the in talk next and maybe that you've a


thanks, always from you. Ashwin good to hear

costs, when look, $XXX fiscal said, better de-layering did we're we to achieve So this on we in update QX, is expected $XX level then of in roughly when is this the year, I it's the out in call journey million what part than the took playbook. that we expect to for continue definitely QX. transformation over on we And the and million our pace

capability the continue, pyramiding, pivot now. optimization So what and build we'll -- right, We'll on to offshoring and the of that contractor will the pull we'll starting some then is we do we're conversion. our

So that's one.

and at that it we third the call X. And And of now environments estate now. platform a taken is best is All the technology done we've the thing platform that we is right to DXC one we consolidating things is of data continue will right. are piloting key, footprint technology. us center. use second we've Bionix then and and right, our The applying to these meaning And look the of real all

disrupting more business So say cost I not that's Ashwin, know two a we're you've prudent been very think important. taken out and or taking the heard me that levers three probably we've there's to Because on, approach. times. I pull

doing we're Alright, we're this. focused Okay, taking not because people our very going so what nor to do is customers, a approach. hurt by


time expect normal look the making, behavior, then of ramps, telling question as other contracts get anything spending that, bead signed, already to and sizing, on decision the new as to Got spender it, we the okay. are And like regards at bookings, pace as the what with tracking clients things behavior, you? should enterprise contract a lookout, we


five greater. are what And things are book-to-bill market, -- of in or seeing Okay, here X.X all the these that things right. that's this I'm the so our five pushing is

at The first it's are pipeline, look And is you when that XX% decisions. up thing making quarter-on-quarter. CIOs our


is thing second The everybody's transformation. talking about

earlier a the lot So about an discussions was cloud. back going that about of the to question cloud,

people flexibility so is in see right, third basically with want they area, The to greater want that got right, have automate, more all this workforce. their because automation to they COVID-XX

Now, fourth three, the is unless do those works. are things five DXC key The points the to the first four can't story. you environment and thing

the Ashwin fifth working as you're are the People biggest so dealing so to these me, this And thing as you've talking our hey, it with me point next to it and And one possible. to we've CIO, are with an of deal is Okay, of with the to and you still environments, remotely to got talking forth. we're dealing when people environments. amount work seen is make about, many wave efficiently upgrade COVID things unprecedented these downtime. then last needs now operationally get of the upgrade ability when downtime CEOs

what's that's a deals. pipeline. lot our lot what's a So fueling That's the of fueling of

that IT feel the So about position we're services space. in the good we


MoffettNathanson. Our next question comes from Lisa with


guys. for And Mike, weary. no rest stabilization revenue the here. nicer that. Great Thanks, Terrific. to see

some when bit point pretty upfront, just and And wondering big going up of of I'll cash a of got on down? and there you've line the around review this eyeing point? areas and if have transactions ask strategic acquisitions? about thinking done into another at those tuck-in you of just my completed then you of just potentially forward? which underway I'm portfolio, you're that sort transaction how Now are high that would follow we flow. restructuring And M&A growth a is been are you've you go the for see DXC's merger this maybe lot consider or you. scaled have at drag this of might sight of now Thank restructuring related costs, which a Meanings persistent


you're Okay, always points our check I so about progress. your in Lisa seven thanks. And on tracking how

I right. All you. can them. thank recite So

about On this level talk I the a run we're can when us front, where business. stability, on point getting certain -- the getting look to I of a now M&A to

get business to we that we've And want are space. quiet I And can this what where small now any in because that's starting to things start Okay. on to and don't competing drive bit. a put the trying down to been piece

DXC, the balance about, which it's we're seven points, right I market, strengthening ones revenue, the margins the and So stabilizing on. or sheet focused winning whether people got we've on focused net right, are I'm that we're what strategy, XXX% I expanding the your that's think talked showing in the

any in transactions major our see don't I future. So

Now, -- because to I'm we're portfolio mean continue the studying going that. to look already that doesn't not always at that

of Now restructuring, in okay. favorite costs. restructuring topic, your question, second transaction and My terms


be should they this, completed just right. down, having coming look, So,

We will initiative. I details give what we Lisa, call now as that's around more can are that the direction, they're headed. definitely you finalizing the But strategic alternatives



Stanley. comes ahead. Please question James next go with Morgan from Our


M&A. James. more Jonathan expand this the Thanks Hey, with on that and around the taking broadly Lisa's on Human paid is question. To capital point debt Service Health Can for you for allocation down now talk my about proceeds? you've


so we're one I number consistent. parts. been investment incredibly said, But capital Okay, priority, still, of and I number dealing look, profile. our with allocation. constantly credit allocation, an so fourth reevaluating That's think to like basically is my maintain moving grade We're I've COVID capital as hits our a

So initiative, still our just we to alternative Provider room the through strategic business. them Healthcare terms of Software need in go close to back

journey to Second small those our alternative. is, as the that's we're retain. I to now been want we've run as that piece, strategic no again, And have significantly I mean, is businesses going gone this they letting right? two apply transformation onto through businesses

where to good us then in get it that's So be at. after of businesses. basically And terms will Covid, for we're the those

continue through this. our to as we're at But prudent all think we're guidance, now, money a right managing we'll look it. very our to approach I taking to So


Can the guidance? there Got so, horizontal mobility place? that's expected talk workplace any is BPS some And of you the asset your it. looking asset. And you're and on take Is those? margin to to take that around us contemplated if actions to reinvestment


want misunderstand. Mike management in differently. worked Yes, but for anybody already with, to those past, do that new will team. things somebody Mike three example, businesses and leader, we've a you to we're McDaniel. so We're a bringing I job the hired And businesses, don't do To line we great and a business. bottom run to I've years, going on with the we're my specific is It's definitely that of them number strengthening the workplace, a give driving is what are back focused in, going so one those

Second is we're propositions. looking to change value the

is ability can I around industry are headed proposition. companies. and to right use with value is workplace better discussions opportunity. connect experience, how So of the again, and of capture in now workplace also workplace if today, third employees closer the colleagues, And that sort partners. one devices, to with out employee that of focus their want with some and not together just distribution We're IT we our where on we're with And that's to the their about supporting of deeper again, the even better work business our now, then relationships leading them, providers

get at So transformation Jonathan, with our the businesses after journey down. level. go a focus those But is remember, that's high and let's those customers nailed

cost. make optimizing make selling. we're want we sure also we're to Let's But right. our sure All cross

So yes, but making, those across It's with two board. it's just the we're not businesses. investments there are


in from Our Kupferberg of America. comes last question queue with Jason Bank


prior for know guys just This throughout sort expected last? year? have I how question. of Hey, of Kathy to still wanted run you. about just like my XQ. the you is Thank about those guys, been ask subside off, going Jason. for price wanted like, to talking I are to Or have end affected the taking and are termination impacts fiscal gradually I those downs, to long those on the know, thanks


question. So for your thanks

now. run for while been talking we've a those about look, offs So

Because much year-on-year continue the hard through stabilization. evidence trying And is We revenue shoots And a I, what why talk stabilizing. are that you them. about show we all what to to revenue is tough that's compare pretty we've green real to the I'm one. from the gone is

I being I see area troubled those those. in through customer relationships, our why in don't relationships, we're the And that's talked anymore, that So about customer also fact, we're them. enhancing



Mike Salvino

that. to call want So, I look, tonight. for joining thank everybody the with

momentum making will And and and families I that, call. QX bringing progress our strong journey want QX. we've think We're to the created customers and and new your transformation I the close in with DXC our in continue that best please the people. wish our operator, all we're confident you the to on


you, and concludes Thank presentation. ladies This gentlemen. today's

disconnect. now may You