Science Applications International Corporation (SAIC) reported its financial results for the three and six months ended August 2, 2024, reflecting a mixed performance compared to the same periods in the previous fiscal year.

For the three months ended August 2, 2024, SAIC generated revenues of $1,818 million, a 2% increase from $1,784 million in the prior year. However, for the six months, revenues decreased by 4% to $3,665 million from $3,812 million. The decline in six-month revenues was primarily attributed to the sale of the Supply Chain Business, which accounted for a $188 million reduction, alongside contract completions. Adjusted for this divestiture, revenues grew by 1.1%.

Operating income for the three months ended August 2, 2024, was $134 million, a significant 63% decrease from $362 million in the same period last year. For the six months, operating income fell 49% to $265 million from $519 million. The decrease in operating income was largely due to a prior-year gain from the sale of the Supply Chain Business, which had a positive impact of $234 million.

Net income for the three months ended August 2, 2024, was $81 million, down 67% from $247 million in the prior year. For the six months, net income decreased by 54% to $158 million from $345 million. The effective income tax rate for the three months was 19.6%, down from 26.4% in the prior year, attributed to the non-recurrence of gains from the Supply Chain Business sale.

SAIC's cash and cash equivalents as of August 2, 2024, were $48 million, a decrease from $94 million at the end of the previous fiscal period. Total current liabilities increased to $1,292 million from $1,158 million, while total assets decreased to $5,250 million from $5,314 million.

In terms of strategic developments, SAIC underwent a business reorganization effective February 3, 2024, transitioning into five customer-facing business groups under two reportable segments: Defense and Intelligence, and Civilian. The company also repurchased approximately 22.6 million shares of its common stock under its repurchase plan, which has a total authorized limit of approximately 24.4 million shares.

SAIC's total backlog as of August 2, 2024, was estimated at $22.899 billion, an increase from $22.763 billion as of February 2, 2024. The funded backlog was $4.237 billion, while the negotiated unfunded backlog stood at $18.662 billion. Net bookings for the three months were approximately $1.2 billion, and for the six months, they totaled approximately $3.8 billion.