Thread regarding DXC Technology layoffs

Now on the positive side of things ...

Q2 results were only as bad as forecast (not worse)
Mr Shouty remembered the names of all the analysts this time, and only nearly lost his temper with one of them (last one on the "why no pay rise?" question)
DXC isn't Twitter - most employees email accounts and laptops still worked on Friday morning
Err that's it.

So, when every other company in the sector is reporting solid organic growth, Mr Shouty is proud of the fact that he's stabilised the decline?

Don't fall into Mr Shouty's Orwellian NewSpeak trap using meaningless terms like "organic growth" - look at the real numbers, other companies are growing. DXC is not.

Despite Mr Shouty's saying GBS has had 6 successive solid quarters, this translates to revenue changes of (13.2%) (16.5%) 1.3% (8.9%) (6.8%) (8.5%) respectively, so just one quarter of a small increase.
GIS meanwhile is trying its hardest to ensure its not even in existence by next Q2 as its numbers were
(3.2%) (6.8%) (9.5%) (7.7%) (13.5%) (14.0%) so getting worse rapidly

So, when every other company in the sector is reporting solid organic growth, Mr Shouty is proud of the fact that he's stabilised the decline?

Is it possible that he is the worst CEO ever on a basis of CEO salary vs Growth achieved.

Next he'll be announcing that he's pleased with a -ve profit.

What was boot to b-m ratio? Did that go down as well?

"improved to a decline". TRAINWRECK IN SLOW MOTION

revenue growth of GIS to minus 5.8%
organic revenue was negative 1.5%
GBS profit margin declined 320 basis points year over year
EPS was down $0.15
Applications declined 1.1%
Security was down 10.8%
IT outsourcing had a strong quarter with a decline of 0.9%
Modern Workplace was down 16.9%
Forecast organic revenue growth at minus 1.5% to minus 2.5%

TRAINWRECK.

Salv is drunk off his head.

The analyst kept asking him about pay and how competition in keeping staff was, and he answered them with bull about other things, getting right people, and said its not about pay. Which planet of people is he on about, is he recruiting on Mars or venus?

Such lies when he takes whopping pay raises.

if its not about pay sal you take a 50% cut and get motivated on other things.

drilling into some of the GIS numbers in more detail shows what a car crash they are
Cloud and Infra down another 10% Security 20% and the prize this quarter goes to Modern Workplace with a 25% decline - Mr Shouty should have sold that business segment after all a few years ago as clients seem to have got the message and stopped purchasing it from DXC!
boot to bill for GIS overall of 0.71 shows its not going to improve any time soon

Also stated he is proud of how they are taking care of employees. In what universe.

1 billion stock buy back, thats nuts. Just give to as pay increases to your employee's

F u-k you Mike!

guidance suitably adjusted for future quarters to reflect the continued steady shrinkage - now expected to be $14.5B for FY23 (so down more than $1.75B over previous year actuals and $500M more than original FY23 forecast decline)
Free cash flow down more than 60% and in fact only just traded profitably (just $17M for entire quarter)
With book to bill now under 1.0 (as stated in earlier post its 0.83) future revenue guidance has now given up on actual growth in FY24, instead the focus is on a completely artificial and meaningless term called "organic revenue growth" which apparently will be positive (perhaps that's Mr Shouty's salary?)
Market seemed to get wind of this with a decline of 9% before results announced, lets see what they say tomorrow after the analyst briefing and time to digest the real world numbers (as opposed to "organic revenue growth")

and outside the parallel world of Mr Shouty accounting the real world is:

Revenue down another $461M in the quarter compared to same quarter last year. In percentage terms this is 11.4% - almost exact same rate of shrinkage as last year (when it was 11.6%) - so DXC continues to shrink at exact same rate despite all the efforts this past year. This time GIS gets the prize by more than doubling their rate of shrinkage compared to last year (now running at 14%).

So what does DXC say about these consistently awful results that were as bad as DXC forecasted (but not much worse). They say "I am pleased with our second quarter results ... This is the kind of strong performance that we are accustomed to, as our revenue performance is one of the best results we have delivered ..."

That's for 11.4% decline in revenue overall and 14% in GIS ... absolutely delusional - or more realistically, a statement to try and keep the private equity buyers still interested hoping they cannot read balance sheets or do any Math - now lets see what buzzword bingo we get in the analyst briefing ("currency headwinds", "transformation on track" ,"poised for growth/to meet guidance going forward")

Bla bla bla

11% revenue down
Almost no free cash flow
Book to bill 0.83

That says all.
Sad.