Thread regarding DXC Technology layoffs

Calculation of DXC Digital revenue

According to the TRANSCRIPT - "Digital revenue was up 35% year-over-year, including 2 weeks of revenue from Luxoft. Excluding Luxoft, Digital revenue grew 31%"

After a question from analyst RK regarding Luxsoft contribution for the quarter, PS confirmed $45m.

Using simple math, if $45M is equal to 4% then 31% should equal $348.75M as the principal is the same (Q4 19 Digital revenue).

What is impossible to 'guestimate' is whether the 'expected' $700M of Luxoft revenue total FY20 forms part of PS 80% YOY increase?

Back to Q1 Digital revenue. Digital revenues increased 31% to $348M. If analyst have done a similar calculation as above, they could perceive Digital revenues to be about 7% of Q1 total.

Whatever the Digital revenue figures, I think RK was quicker off the mark than PS, as now he (as do we all) have clue on how to calculate the actual Q1 Digital revenue.

The above is a re-post as original was removed.

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| 1562 views | | 6 replies (last August 21, 2019) | Reply
Post ID: @OP+10DsRRg8

6 replies (most recent on top)

What does DXC perceive Digital? and what is DXC telling the market about the split between Digital and what it classes 'old' ITO business? That is the interesting 'nugget' that analysts are trawling the Q1 results for.

There is a very interesting paradox DXC has inadvertently created for itself here! By realizing 'traditional' revenues as 'Digital' revenues it has created a dependence that creates problems for a sell off pllan

The much talked about 'split' could not happen until digital revenues are real!

For example, if a split was executed post Q4 20 with 'Digital' @ $2.8B (quarterly 31% + Luxoft ($745B)) of $20B FY 20 total. The 'bad' traditional side of the business keeps the falsely accounted 'Digital' revenue (70%) exposure abound!

Of course the conjecture above does not actually prevent anything from happening, but It does create issues of valuation and trust with investors.

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Post ID: @1jnp+10DsRRg8

I'm getting rather bored of one or more poster on here who doesn't understand that "digital" is just the latest industry term for a whole raft of technology. Its not literal.

If you can't grasp that then probably you truly are one of those not going to survive into the future.

The term refers to a concept of root and branch destruction and rebuild of a company's IT in order to deal with all of the problems of evolved disparate systems that have grown up over the last 50+ years.

As such you can see why DXC themselves are pushing the agenda, because its a massive job and a lot of money to be made. Equally, you can see why at a time of forthcoming global financial turmoil, few clients are interested in this level of investment, even if they can identify the raw benefits.

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Post ID: @1jvr+10DsRRg8

Nobody knows how to calculate it.

Everyone lies about it, Oracle, IBM, SAP, Accenture, you name it.

Just google this, and you'll see that many are complaining about this.

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Post ID: @gsq+10DsRRg8

'Digital' is DXC-speak is just a name for business that isn't traditional ITO.

It's not the cleverest name but they have to call it something.

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Post ID: @pap+10DsRRg8

Took from another post, but so true!

Rather tired by the terminology of Digital this Digital that - since Computers have been digital since the Second WW2 and transformations is simply a revised / improved process / transferring data from A -> B which has always been in minds of Digital/computer Engineers since the innovation of Computers

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Post ID: @zzq+10DsRRg8

All computers are Digital, so what does DXC mean by Digital ? The term Digital is almost as stupid as Cloud. A marketing term that really has no meaning.

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Post ID: @hve+10DsRRg8

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