SAIC Announces Third Quarter of Fiscal Year 2018 Results

05:50 12/07/2017

Science Applications International Corporation SAIC , a leading technology integrator providing full life-cycle services and solutions in the technical, engineering, intelligence, and enterprise information technology markets, announced results for the third quarter ended November 3, 2017.

Revenues for the quarter increased $31 million, or 3%, compared to the prior year quarter primarily due to higher revenue on new contracts supporting NASA, the U.S. Army and the Environmental Protection Agency (EPA) ($56 million), partially offset by the completion of contracts and other net decreases across our portfolio. These decreases include the loss of an IT integration contract supporting the Department of Homeland Security (DHS) ($14 million). The Company’s internal revenue growth(1) for the third quarter was 3.0%.

“SAIC’s third quarter performance delivers on the expectations of revenue growth and improved profitability,” said SAIC CEO Tony Moraco. "In addition to the continued strong business development results, I am encouraged by the ongoing actions to align operations to our long-term strategy to drive the future success of the company."

Operating income as a percentage of revenues decreased to 6.3% of revenues, compared to 6.6% for the prior year quarter, primarily due to lower profit from a higher volume of cost reimbursable contracts and higher material cost mix.

Net income for the quarter increased $1 million from the comparable prior year period primarily due to lower interest expense as a result of refinancing our long-term debt in the prior year ($3 million, net of tax) partially offset by an increase in the effective tax rate.

Net bookings for the quarter were approximately $2.6 billion, which reflects a book-to-bill ratio of approximately 2.3, and marks the second quarter in a row SAIC has set a new record for highest quarterly bookings. SAIC’s estimated backlog of signed business orders at the end of the quarter was approximately $10.7 billion of which $2.6 billion was funded.

SAIC  also made a splash in the news when it was recently awarded the Battlefield Systems task order, worth approximately $980 million, by the General Services Administration on behalf of the U.S. Army Software Engineering Directorate.

Awarded under the GSA One Acquisition Solution for Integrated Services (OASIS) contract vehicle, the task order has a one-year period of performance, two one-year options, and work will be performed at the Army’s SED in Redstone Arsenal, Alabama.

“For more than 20 years, SAIC has provided critical technologies to warfighters in the field. We are proud to continue our support to SED, ensuring our nation’s warfighters have the tools they need to successfully complete their missions,” said Jim Scanlon, SAIC senior vice president and general manager of the Defense Systems Customer Group.

Under the contract, SAIC will help field new technologies to warfighters in the field and provide systems engineering and computer resource engineering services to SED, the Aviation and Missile Research, Development, and Engineering Center (AMRDEC), and the Army Research, Development and Engineering Command (USA RDECOM). SED customers include Department of Defense components and other federal government agencies.

AMRDEC is the Army’s focal point for providing research, development, and engineering technology and services for aviation and missile platforms across the lifecycle.

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