SAIC Announces Financial Results for Third Quarter of Fiscal Year 2013
"This quarter we are reporting modest year-over-year revenue growth and solid new business bookings even in the currently cautious government market. This reflects our more aggressive pursuit of new business opportunities and the strong commitment of our 40,000 employees to the highest level of customer service, even as we undertake significant changes within the Company," said
Revenues for the third quarter of fiscal year 2013 were
Operating income for the quarter was
Income from continuing operations for the quarter was
Diluted earnings per share from continuing operations for the quarter were
Segment Operating Results
Health, Energy and Civil Solutions
Health, Energy and Civil Solutions revenues for the quarter increased 2 percent from the third quarter of fiscal year 2012. Internal revenues decreased 4 percent due to declines in various federal civilian programs and program completions with federal health information technology customers. These decreases were partially offset by an increase in healthcare IT consulting services with commercial clients.
Health, Energy and Civil Solutions operating income for the quarter was 9.3 percent of revenue, down from 10.6 percent of revenue in the third quarter of fiscal year 2012. The decline was primarily due to net unfavorable changes in contract estimates, increased bid and proposal costs, increased amortization expense associated with acquired intangible assets, and reduced volume of non-intrusive inspection systems. These decreases were partially offset by reduced research and development expense, which reflected the advancement through the product development lifecycle of new non-intrusive inspection system offerings.
Intelligence and Cybersecurity Solutions
Intelligence and Cybersecurity Solutions revenues for the quarter were down slightly from the third quarter of fiscal year 2012 as increased activity on a geospatial intelligence program and an airborne surveillance program were offset by higher prior year material deliveries on a processing, exploitation and dissemination program.
Intelligence and Cybersecurity Solutions operating income for the quarter was 7.2 percent of revenue, up from 5.7 percent of revenue in the third quarter of fiscal year 2012, primarily due to a
Corporate and Other
Corporate and Other segment operating loss for the quarter increased from the third quarter of fiscal year 2012, primarily due to
Cash Generation and Capital Deployment
Cash flow provided by operations for the quarter was
During the quarter, the Company paid a cash dividend of
New Business Awards
Net business bookings totaled
U.S. Central Command's (USCENTCOM)
U.S Army Military Intelligence Enterprise. The Company was awarded a prime contract to provide information technology design, implementation and operational sustainment support services to the
Healthcare IT Awards. Recently the Company highlighted its continued progress in the healthcare IT sector, noting that in the Company's third quarter of fiscal year 2013 it won contracts totaling approximately
The Company's backlog of signed business orders at the end of the third quarter of fiscal year 2013 was
Subsequent to the end of the quarter, the Company completed the previously announced sale of its operational test and evaluation services business. The Company also entered into an issue resolution agreement with the
Based upon its operating and business development performance through the third quarter of the fiscal year and the subsequent events discussed above, the Company is increasing its expectation for fiscal year 2013 diluted earnings per share from continuing operations and cash flows from continuing operations. The Company expects its fiscal year 2013 revenues to be consistent with the forward guidance provided on
Fiscal year 2013 guidance excludes the impact of potential future acquisitions and other non-ordinary course items.
Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance," and similar words or phrases. Forward-looking statements in this release include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and acquisitions. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Actual performance and results may differ materially from the guidance and other forward-looking statements made in this release depending on a variety of factors, including: our ability to declare future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and agreements of the Company; our ability to comply with certain agreements entered into in connection with the CityTime settlement; developments in the
All information in this release is as of