Science Applications International Corp (NYSE:SAIC) came out with first fiscal quarter figures on Thursday.
The Reston, Va.-based company noted that revenues for the quarter registered at $1.615 million, which proved to be a 37% improvement over the prior-year quarter.
Excluding acquired revenues, revenues contracted 2.8%, attributable to humanitarian relief materials in the prior year quarter and the effect of acquisition related revenue dis-synergies.
Operating income vaulted a remarkable 41% to $93 million, with operating income as a percentage of revenues at 5.8%, due to the acquisition of Engility, cost synergies related to the acquisition, and improved performance across our portfolio, partially offset by higher costs associated with the acquisition and integration of Engility.
Net income attributable to common stockholders for the quarter increased $6 million as compared to the same period in the prior year primarily due to increased operating income ($24 million, net of tax), partially offset by higher interest expense and a higher effective tax rate.
Adjusted EBITDA as a percentage of revenues for the quarter increased to 8.3%, compared to 6.5% for the prior year quarter, driven by the acquisition of Engility, cost synergies related to the acquisition, and improved performance across our portfolio including higher net favorable changes in estimates.
According to CEO-Elect Nazzic Keene, "SAIC is off to a strong start to fiscal year 2020, keeping our attention on strong operational performance while continuing the integration of Engility."
Shares gained $2.27, or 2.9%, to $81.47
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