dxc earnings call transcript

Clearly, the investment we have been making in our people in the business over the past seven months was the right thing to do. It seems like a meaningful portion of the headwinds in the ITO piece. Now I've already given you a lot of context on our first initiative, which focused on customer delivery and building stronger customer relationships, but I want to spend time clarifying our cost optimization and seize the market initiatives. So that's the main thing I would highlight for you.Capex in the quarter was $310 million, or 6.2% of revenue, and on a year-to-date basis, capex was $1.01 billion, or 6.8% of revenue. Thanks, guys.We're also executing -- we're also executing well in pursuing strategic alternatives for three businesses and are on track to hit the timeline we've set for ourselves. And then the final thing I gave you all a glimpse as to the campaigns we're running, all right? We're seeing solid demand for our enterprise cloud application business. Cloud is something of an impact. And what I plan to do is discuss that 2021 plan on our next earnings call. But now they're both essential and top-of-mind for our customers.As always, all revenue comparisons I will discuss will be in constant currency. As always, all revenue comparisons I will discuss will be in constant currency. So I won't be and Paul won't be commenting any further on that other than the outlook that we gave on 2020.So the reason I highlighted what I call DXC alumni rejoining is that's a new movement, all right, meaning people want to come back and join the place. Book-to-bill in the quarter was 1.06 times. And so that gives us really a great opportunity to showcase the rest of our product -- of our offering across the enterprise technology stack.At this time, I would like to turn the conference over to Shailesh Murali. Understood. For example, we had some restructuring more related to some of the complex countries. Both Carla and Chris have impeccable resumes, broad experience, and played broader roles in their prior companies, but joined DXC to be a part of the transformation journey. Book-to-bill was 1.5 times, which is the best book-to-bill we've had since Q3 of last year.I've been receiving positive comments during my check-in calls. Now these are encouraging signs that the investment we're making to turn around challenged accounts are starting to pay off.We are now also moving to a regionally focused operating model with a tighter management system, designed to speed up decision making and increase accountability.

And Chris will be our CIO and will lead our IT transformation to deliver tools to our people to better serve our customers.Now let me briefly comment on the performance of the layers within the enterprise technology stack. And finally, we are seizing the market opportunity where the criticality of the IT estate is top-of-mind for customers, which is highlighting our expertise. And when it goes, it will usually go to a private cloud. And I mentioned that we are over $5.5 billion of cash at the end of April. I will update you on the progress against the priorities discussed during our Q2 earnings call.

This 99% number is industry-leading, which is expected because we've got the number one workplace and mobility business in the industry, but nonetheless, it was great to see us deliver for our customers.

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dxc earnings call transcript