SAIC: Q1 Earnings and Other News

 Two weeks ago, this column provided an overview of May contract wins for the platform companies, along with a brief mention of their first quarter earnings. In light of SAIC’s reporting Q1 2018 earnings this week, I’d like to highlight some takeaways.

For the quarter ending on May 4 th , revenue climbed to $72 million, a 6.5% percent increase from the same time last year. The increase was driven by new contracts, including those with NASA and the EPA, totaling $47 million, and new supply chain orders, totaling $64 million. The Reston, Va., company noted the increases were mitigated somewhat by contract completions and other factors, an offset of $39 million.

Q1 net income stayed the same year-over-year at $49 million, with EBIDTA as a percentage of revenue falling to 6.5%, slightly lower than the 6.6% reported during the same period last year. The company attributed this to higher supply chain content driving lower margins. Diluted earnings per share for the quarter was $1.13.

Tony Moraco, SAIC’s chief executive officer, and a five-time consecutive Wash100 winner, commented, “Solid execution in the first quarter of fiscal year 2019 resulted in SAIC’s third consecutive quarter of revenue growth and strong cash flow generation.” He added that the current federal budget is allowing SAIC to invest in new technologies and opportunities.

In other SAIC news, the company announced Wednesday it secured a spot on the GSA’s Alliant 2 GWAC contract to provide IT support. An indefinite delivery, indefinite quantity contract vehicle, with a five-year base and five-year option, Alliant 2 has a ceiling of $50 billion and includes 60 awardees.

Nazzic Keene, SAIC’s chief operating officer, and a 2015 Wash100 winner, said “Alliant 2 offers a ‘best-in-class’ solution for IT services for our federal, civilian and defense customers.” She added, “We are proud to be among the companies selected to deliver these critical IT services.”

In May, SAIC dug ground on a Berkeley County, S.C., facility for the engineering and integration of mission-critical platforms. The Platform Innovation Center is scheduled to open later this year and expected to create up to 200 jobs over the next five years. The move represents SAIC’s push to grow operations in the systems engineering, logistics, full lifecycle support and ground tactical vehicles markets.