CSC hires Gannett's CFO as it plans turnaround

Reuters News
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Posted: May 14, 2012 4:49 PM
CSC hires Gannett's CFO as it plans turnaround

(Reuters) - Computer Sciences Corp named a new chief financial officer, tapping Gannett Co CFO Paul Saleh to help turn around the company after a troubled contract with the UK National Health Service led to a massive charge.

The technology services firm announced last month that it would take a fiscal 2012 charge of $9.91 a share related to a troubled contract with the UK's National Health Service.

Its shares were down 1.8 percent at $26.62 near midday on Monday. They have lost almost half their value over the past year.

Company executives said last month that CSC was losing money on the NHS contract which has been plagued by problems implementing a massive computer system for storing medical records.

They also said the company was losing money on other deals that were proving more expensive to deliver than originally anticipated.

CEO Mike Lawrie, who took over in March, has promised to provide more information about his plan to fix CSC when the company reports fiscal fourth-quarter results on Thursday.

Saleh, 55, joined Gannett in November 2010. Previous positions included a stint as CFO of Sprint Nextel Corp.

Gannett has started a search for a new CFO.

The largest U.S. newspaper chain by circulation, Gannett last reported a decline in first-quarter revenue as advertisers continued a long-running shift from newspapers to digital media.

Gannett shares were down 0.4 percent at $13.32.

(Reporting by Jim Finkle in Boston and Supantha Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty and Matthew Lewis)