Computer Sciences Down 8% as UK Battle Continues; Withdraws Guidance

On Tuesday, CSC CSC filed a Current Report on Form 8-K with the Securities and Exchange Commission, which updated its prior disclosures about CSC's discussions and negotiations with the U.K. National Health Service regarding CSC's previously disclosed contract with NHS. Computer Sciences will be required to recognize material impairment in the third-quarter of fiscal year 2012. The impairment charge could be equal to CSC's net investment, which was $1.5 billion as of November 30th. As a result, CSC withdrew its previously disclosed fiscal year 2012 financial guidance. CSC stated it will provide updated fiscal year 2012 financial guidance in connection with the announcement of fiscal third quarter earnings results in February 2012. Currently, shares of Computer Sciences are trading lower, down about 8.42% at $24.36.

Sign up for a free subscription to the Weekly Radar - Benzinga's weekly newsletter highlighting technical levels and analysis for major markets for the week ahead.