Science Applications International Corporation (SAIC) has reported a 48.48 percent jump in profit for the quarter ended May 05, 2017. The company has earned $49 million, or $1.08 a share in the quarter, compared with $33 million, or $0.71 a share for the same period last year.
Revenue during the quarter dropped 9.22 percent to $1,103 million from $1,215 million in the previous year period. Gross margin for the quarter contracted 93 basis points over the previous year period to 8.70 percent. Total expenses were 94.29 percent of quarterly revenues, down from 94.57 percent for the same period last year. This has led to an improvement of 28 basis points in operating margin to 5.71 percent.
Operating income for the quarter was $63 million, compared with $66 million in the previous year period.
However, the adjusted operating income for the quarter stood at $63 million compared to $73 million in the prior year period. At the same time, adjusted operating margin contracted 30 basis points in the quarter to 5.71 percent from 6.01 percent in the last year period.
"In the first quarter of fiscal year 2018, SAIC’s business development and cash flow performance was strong. The first quarter margins were below expectations due to increased costs and investment on our platform integration programs as we work towards completing Marine Corps prototype vehicles." said SAIC CEO Tony Moraco. "We continue to focus on operational improvements and disciplined capital deployment that provide the company with a strong foundation to execute against improving market dynamics."
Operating cash flow improves significantly
Science Applications International Corporation has generated cash of $88 million from operating activities during the quarter, up 151.43 percent or $53 million, when compared with the last year period.
Cash flow from investing activities was unchanged at negative $4 million for the quarter, when compared with the last year period.
The company has spent $88 million cash to carry out financing activities during the quarter as against cash outgo of $73 million in the last year period.
Cash and cash equivalents stood at stood at $207 million as at May 05, 2017.
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