Perspecta predicts $75 million hit to sales in next year because of COVID-19

By Marjorie Censer / May 22, 2020 at 12:54 PM

Perspecta's chief financial officer said this week the company expects the coronavirus crisis to cut sales in its fiscal year 2021, which began April 1, by $75 million. The outbreak is slated to trim operating income for the year by $20 million.

John Kavanaugh told analysts the sales hit amounts to a 2% decrease.

Mac Curtis, Perspecta's chief executive, said during the same call that less than 5% of the company's workforce has been disrupted by COVID-19.

"These areas where we're seeing the primary impact are in the intelligence agencies, where employees are unable to work because secured and classified government facilities are not accessible," he said. "In these situations, under Section 3610 of the CARES Act, we are able to recover our costs associated with this ready-state workforce, but cannot bill the fee."

Meanwhile, Perspecta reported this week that sales in its FY-20 totaled $4.5 billion, up almost 12% from the prior year. However, the company reported a loss for the year of $676 million, down from $72 million in profit a year earlier.

Perspecta attributed the loss to a $796 million pre-tax impairment charge related to goodwill and intangible assets because the company lost the recompete of the Navy's Next Generation Enterprise Network contract.