SAIC Records 6% Growth in Q1 FY 2023 Revenue; Nazzic Keene Quoted

Science Applications International Corp. (NYSE: SAIC) saw its revenue for the first quarter of fiscal year 2023 increase 6 percent to $2 billion and reported $1.29 in diluted earnings per share.

The Reston, Virginia-based government technology services contractor said Monday it recorded approximately $2 billion in Q1 FY 2023 net bookings with a book-to-bill ratio of 1.0 and ended the quarter with an estimated total backlog of approximately $24.1 billion, of which $3.2 billion was funded.

Some of the notable awards secured by SAIC during the previous quarter are a potential $390 million task order to provide systems engineering and integration services to support the modernization of the U.S. Space Force’s GPS program and $337 million in contracts with space and intelligence community agencies.

At SAIC’s earnings call Monday, SAIC CEO Nazzic Keene highlighted the company’s key capabilities within its GTA, also known as growth and technology accelerants, and core focus areas. 

She noted that capabilities within its GTA area include enterprise information technology, secure cloud and systems integration and delivery, while its core area focuses on IT and technical services, engineering, logistics and supply chain.

Keene, a 2022 Wash100 Award winner, said GTA represented about 27 percent of its total revenue in FY 2022.

“We believe the investments we have made to develop differentiated market-leading solutions and recent M&A activity positions us well to capture more than our fair share of a growing pipeline. … We expect to increase our GTA revenue to over 35% of the portfolio within the next 3 years, reflecting strong growth from this area of our business at accretive margins,” she noted.

SAIC recorded $125 million in Q1 FY 2023 operating income and free cash flow of $113 million for the quarter.

The company noted that stockholders of record as of July 15 will receive a cash dividend of $0.37 per share, payable on July 29, and that its board authorized a share repurchase program of up to 8.8 million shares, accounting for 16 percent of shares outstanding.

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