SAIC Reports 37% Growth in Q1 FY 2020 Revenue; Nazzic Keene Quoted

Nazzic Keene

Science Applications International Corp. (NYSE: SAIC) saw its revenue for the first quarter of fiscal year 2020 increase 37 percent to $1.6B and recorded $178M in net cash provided by operating activities, up 102 percent from the prior-year period.

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SAIC said Thursday contract awards for Q1 FY 2020 reached $1.9B and net bookings hit $1.4B with a book-to-bill ratio of 0.9.

The Reston, Va.-based government technology services contractor ended the first quarter with an estimated total backlog of $13.6B of which approximately $3B was funded.

Some of the notable awards secured by SAIC during the previous quarter are the $292M follow-on Safety and Mission Assurance Engineering Contract with NASA and a spot on a potential 10-year, $535M contract with the Defense Threat Reduction Agency for information technology support services.

At SAIC’s earnings call Thursday, Nazzic Keene, the incoming CEO of SAIC and a 2019 Wash100 winner, noted that the company has kept pace with business development activities after its acquisition of Engility and offered updates on the integration of the acquired company.

“Six months in, the acquisition has gone very well and the strategic and financial tenants of the acquisition are intact. … I am pleased to report that we have now achieved a 100% of the year one net cost synergies of $38 million, realizing the benefits earlier in the year and contributing to our higher margins in the first quarter,” Keene said.

SAIC posted $93M in Q1 FY 2020 operating income with diluted earnings per share of $0.92 and free cash flow of $169M for the quarter.

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