Revenue Sources - 98% of total revenues in fiscal 2024 were derived from prime contracts with the U.S. government or subcontracts related to U.S. government work[32] - The U.S. Army contributed 17% to total revenues in fiscal 2024, while the U.S. Navy and Air Force contributed 13% and 12%, respectively[33] - The company generated 98% of its revenues from contracts with the U.S. government in fiscal 2024[165] - Revenues derived from fixed-price contracts represented approximately 19% of total revenues for fiscal 2024, highlighting the company's reliance on various contract types[84] - Total revenues for fiscal 2024 were $7,444 million, compared to $7,704 million in fiscal 2023[189] Financial Performance - Operating income increased by 48% to $741 million, representing 10.0% of revenues, compared to 6.5% in fiscal 2023[180] - Net income attributable to common stockholders rose by 59% to $477 million, compared to $300 million in fiscal 2023[180] - Adjusted EBITDA as a percentage of revenues increased to 9.0% for fiscal 2024, compared to 8.8% for fiscal 2023[192] - Cash flows from operating activities decreased by 26% to $396 million, down from $532 million in fiscal 2023[180] - Cash used in financing activities rose to $725 million in fiscal 2024, reflecting higher principal payments and share repurchases[216] Employee and Diversity Metrics - The company employed approximately 24,000 individuals as of February 2, 2024, with a gender representation of 73% male and 27% female[53] - The gender pay equity ratio was approximately 99% for the compensation of women relative to men as of October 1, 2023[54] - In fiscal 2024, the company achieved a 28% representation of women in leadership roles, maintaining parity from fiscal 2023[55] - The company made progress in increasing the representation of people of color in leadership roles by 2% to 25% in fiscal 2024[55] - The annual employee culture survey showed significant improvement in sustainable engagement, with scores above national benchmarks[62] Operational Challenges and Risks - The company faces intense competition from established multinational companies and smaller specialized firms in the government services industry[45] - The U.S. government can cancel contracts at any time, but most contracts allow recovery of incurred costs and profits upon termination[35] - The company faces risks related to U.S. government budgetary changes, which could adversely affect future revenues and cash flows[78] - Increased scrutiny from government audits may restrict the company's ability to bid on new contracts and could result in significant customer refunds[90] - The company faces risks from potential government investigations that could lead to civil or criminal penalties, affecting profitability and reputation[92] Strategic Initiatives - The company completed a business reorganization effective February 3, 2024, transitioning from two operating sectors to five customer-facing business groups[164] - The company aims for a 20% reduction in Scopes 1 and 2 greenhouse gas emissions by 2030, having already achieved its previous reduction targets for 2025[72] - The company’s Innovation Factory develops enterprise-class solutions to accelerate digital transformation for customers[172] - The company may pursue strategic acquisitions, but these could involve risks that adversely affect operations and financial results[102] Community Engagement and Support - Employee volunteer hours increased by 10%, totaling over 29,000 hours contributed to community service[63] - The SAIC Foundation awarded over $58,000 in grants to support employees facing financial hardships in calendar year 2023[64] Contractual and Financial Obligations - Total contractual obligations amount to $2,928 million, with $340 million due in fiscal 2025[212] - Total long-term debt as of February 2, 2024, is $2,109 million, with $77 million due in fiscal 2025[212] - The company has estimated $251 million in gross net operating loss carryforwards and approximately $1.2 billion in tax basis for acquired amortizable goodwill and other intangible assets[95] Audit and Compliance - The company is subject to rigorous audits by the DCAA and DCMA, which could lead to adverse outcomes affecting profitability and cash flows[89] - The company has established policies and procedures to ensure compliance with complex laws and regulations affecting its business[38] - The company is subject to extensive federal and state privacy and data security laws, impacting operations involving personally identifiable information[36] Market and Economic Factors - Volatility in global capital markets could restrict the company's access to capital and increase its cost of capital[108] - Changes in U.S. tax laws, such as the requirement to amortize R&D expenditures over five years, could increase tax expenses and affect profitability[96] - Pension funding and costs are sensitive to economic assumptions, which could lead to significant fluctuations in future earnings and cash flow[120]

Science Applications International Corporation (SAIC) shares plunged 10% on Monday after the company reported lower-than-expected bottom-line results for the fourth quarter of fiscal 2024. The company reported fourth-quarter adjusted earnings of $1.43 per share, which lagged the Zacks Consensus Estimate by a penny. The figure also decreased 30% year over year due to lower revenues and higher expenses.Revenues declined 12% year over year to $1.74 billion but outpaced the consensus mark by 5.9%. The year-over ...

Science Applications International Corporation (NASDAQ:SAIC) Q4 2024 Earnings Conference Call March 18, 2024 10:00 AM ET Company Participants Joseph DeNardi - Senior Vice President, Investor Relations and Treasurer Toni Townes-Whitley - Chief Executive Officer Prabu Natarajan - Chief Financial Officer Conference Call Participants Seth Seifman - JPMorgan Jason Gursky - Citi Greg Konrad - Jefferies Bert Subin - Stifel Cai von Rumohr - TD Cowen Tobey Sommer - Truist Securities Josh Korn - Barclays Operator Hel ...

Defense tech specialist Science Applications International (SAIC -9.70%) missed quarterly expectations due to expenses tied to its CEO transition. Investors are taking a harsh view, sending SAIC shares down 10% as of 10:30 ET on Monday.A bottom-line miss despite strong salesSAIC provides IT, tech, and engineering services to a range of government and defense customers. The company earned $1.43 per share in its fiscal fourth quarter, ending Feb. 2, which fell short of Wall Street's $1.47 consensus. Revenue c ...

SAIC PROPRIETARY INFORMATION | | Q SAJC. ALL RIGHTS RESERVED | I 17 Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share Adjusted Diluted Earnings Per Share | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------|----------|--------|-------|--------|---------------------------------------------------|--------|-------|---------|---------| | | Reported | | | | Three Months Ended February 2, 2024 \nRecovery at | assets | | Gain on | results | ...

| | | | Three Months Ended | | | | Year Ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | February 2, | Percent | February 3, | | February 2, | Percent | | February 3, | | | | 2024 | change | 2023 | | 2024 | change | | 2023 | | | | | | | (in millions, except per share amounts) | | | | | | Revenues | $ | 1,737 | (12) % $ | 1,968 | $ | 7,444 | | (3) % $ | 7,704 | | Operating income | | 79 | (33) % | 118 | | 741 | 48 | % | 501 | | Operating income as a percentage of | | | | | | | ...

Science Applications International Corporation (SAIC) has secured $284 million in contracts from the U.S. intelligence community in the first two months of 2024. The deals mark a milestone for SAIC's strategy to expand its mission, IT and engineering services within the intelligence sector.David Ray, Science Applications' executive vice president of the Space and Intelligence Business Group, expressed confidence in leveraging these wins to strengthen customer relationships and broaden its service offerings. ...

Science Applications International Corporation (SAIC) has been awarded a $444 million contract to support the U.S. Space Force's Digital Transformation, Acquisition, Modernization and Modification (“DTAMM”) program. The contract focuses on enhancing the Space Systems Command and Space Launch Deltas (SLDs) 30 and 45.Science Applications' executive vice president, David Ray, emphasized the company's commitment to advancing space exploration and resilience. The contract will aid in modernizing space launch ran ...

RESTON, Va.--(BUSINESS WIRE)--Science Applications International Corp. (NYSE: SAIC) has been awarded a $444 million contract to support Digital Transformation, Acquisition, Modernization and Modification (DTAMM) for the U.S. Space Force's Space Systems Command and Space Launch Deltas (SLDs) 30 and 45. "SAIC's continued partnership with the Space Force is a symbol of our commitment to further space exploration, resilience and crew safety in space ranges in Florida, California and across the United States, ...

RESTON, Va.--(BUSINESS WIRE)--Science Applications International Corp. (NYSE: SAIC) today announced it has been awarded a $96 million contract by the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) to modernize business operations. “The Under Secretary of Defense for Research and Engineering delivers crucial technology capabilities to warfighters,” said Vinnie DiFronzo, executive vice president, Air Force and Combatant Command Business Group at SAIC. “OUSD(R&E) is a crit ...