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Technology Stocks : CSC Computer Sciences Corp -- Ignore unavailable to you. Want to Upgrade?

To: Orwell who wrote (105)	4/27/1999 6:25:00 PM
From: John Carson	Respond to of 125

CSC jumped 4+ today...on this news? CSC Rolls Out JETS Automated Data TraderTo Facilitate Insurance Industry Communications AUSTIN, Texas, April 27 /PRNewswire/ -- Computer Sciences Corporation (NYSE: CSC) today introduced an e-business solution that expedites service between insurance companies and distributors. CSC is the first information technology company to offer this type of business-to-business software package to facilitate communications between insurers and the National Securities Clearing Corporation's (NSCC's) Insurance Processing Service (IPS). IPS is expected to revolutionize variable life and annuity sales in the same way the NSCC mutual funds system dramatically increased mutual funds sales. CSC's new JETS(TM) Automated Data Trader improves service to insurers' trading partners by simplifying processing of applications, deposits, positions and commissions. JETS sends and receives data in the NSCC format and is designed to be expanded to send and receive data, regardless of format, over other industry communication networks. According to CSC, four insurance companies have already licensed JETS Automated Data Trader. IPS creates new opportunities for insurers and distributors. For example, they can now transmit data to one another without establishing proprietary networks. Insurers expect IPS to result in increased shelf space for variable insurance products at brokerages, thus increasing insurance sales by these trading partners. "Communicating through the NSCC's IPS via CSC's JETS Automated Data Trader, the insurance industry can now capitalize on the rapidly expanding annuity market by finalizing annuity sales quickly and significantly improving service for trading partners," said Ken Williams, president, Americas Division of CSC's Financial Services Group. "CSC is developing additional interfaces to facilitate communications between insurers' systems and other trading partners or industry clearinghouses, such as DST's Financial Advisor Network Mail." For additional information on the National Securities Clearing Corporation's (NSCC's) Insurance Processing Service, visit the company's web site at www.nscc.com. CSC's Financial Services Group offers a comprehensive array of business and technology solutions which support the complex requirements of the evolving global financial services industry. Customers include more than 1,000 banks, insurers, investment firms, consumer finance companies and other major financial services organizations around the globe. Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. The company develops individual business solutions that are delivered by CSC's 50,000 employees in more than 700 offices worldwide in areas such as management and information technology consulting, systems consulting and integration, operations support and information services outsourcing. Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. The company maintains numerous agreements with hardware and software technology companies and thus is able to identify and manage solutions specifically tailored to each client's needs. Headquartered in El Segundo, California, CSC had revenues of $7.4 billion for the twelve months ended January 1, 1999. For more information, visit the company's web site at www.csc.com. SOURCE Computer Sciences Corporation CO: Computer Sciences Corporation ST: Texas, California IN: CPR SU: PDT 04/27/99 13:33 EDT prnewswire.com

To: Orwell who wrote (105)	4/30/1999 4:37:00 AM
From: Seeker of Truth	Read Replies (1) \| Respond to of 125

Why are profit margins so low? Much of their business comes as a result of competitive bidding. You might ask, you get what you pay for so why doesn't CSC quote higher prices so it can do business more profitably? The problem is that installing and maintaining new systems is something of a gamble. Many, maybe most, customers don't know how to estimate their risks. If they were really that knowledgeable they might do the job themselves. So they tend to be more sensitive to price quotes which everybody including those they report to can understand. They are less sensitive to the quality of the work because that is 1, in the future, not tangible now and 2, not relatively assessable by them. In a truly long term relationship, quality of the job is highly appreciated. But these days, the decision makers are often changing so there may be a long term relationship between CSC and organization X but it may not translate to a mutual trust because the individual decision makers have no long term appreciation of CSC. You heard it from the president of IBM recently, IT services is the place to be. But I doubt if IBM can get a 10% profit margin. It's a growing business, all right, but not a high margin one.