The Science Applications International Corporation (SAIC) has reported revenue of $1.9bn for the third quarter of fiscal year 2023 (FY23), up $11m or 1%, compared to the year prior.
The increase has been attributed to the company’s focus on on-contract growth and new business wins.
During the quarter ended 28 October 2022, operating income as a percentage of revenues increased by 100 basis points (bps) to 7%, due to lower acquisition and integration costs and indirect costs.
Third quarter adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) as a percentage of revenues fell to 8.9%, from 9%.
SAIC’s diluted earnings per share (EPS) for the quarter were $1.45 and adjusted diluted EPS was $1.90.
The company recorded approximately $2bn in net bookings for Q3 and approximately $24.4bn in estimated backlog at the end of the quarter.
The US Army Space and Missile Defense Command (USASMDC) awarded a $208m Scenarios Training Operation Research and Modeling and Simulation (STORMS) contract to SAIC.
SAIC CEO Nazzic Keene said: “Our results reflect continued strong performance from the team, with notable momentum in new business capture and on-contract growth.
“We are confident that the investments we are making, both internally and via our capital deployment programme, are aligned with maximising long-term shareholder value.
“This is our focus and will allow us to provide opportunities to grow for our incredibly talented employees while delivering excellence to our customers.”
The US government military contractor has raised its revenue guidance for FY23 from the previous $7.50bn-$7.55bn to approximately $7.6bn, and adjusted diluted EPS from $7.00-$7.20 to $7.05-$7.20.
Earlier this year, the company won prime contract positions on the General Services Administration ASTRO multiple-award, indefinite-delivery, indefinite-quantity family of contracts.