Science Applications (SAIC) reported earnings on Thur 7 Sept 17 (a/h)

** charts after earnings **

 

** 2 months later **

Science Applications misses by $0.11, reports revs in-line

• Reports Q2 (Jul) earnings of $0.80 per share, $0.11 worse than the Capital IQ Consensus of $0.91; revenues fell 1.6% year/year to $1.08 bln vs the $1.08 bln Capital IQ Consensus.
• Operating income as a percentage of revenues decreased to 5.5% of revenues, compared to 6.4% for the prior year quarter, primarily due to lower contract profitability largely driven by prior year write-ups on programs supporting federal civilian agencies, lower profitability on re-competed supply chain management contracts and higher severance and facility expense.
• Total cash flows used by operating activities for the second quarter were $35 million. The $58 million decrease in cash provided by operating activities compared to the prior year period was primarily due to a government customer payment system issue ($45 million).
• Net bookings for the quarter were approximately $2.1 billion, which reflects a book-to-bill ratio of approximately 2.0.