Science Applications Q2 Profit Rises

(RTTNews) - Science Applications International Corp. (SAIC), Tuesday said its profit for the second quarter rose from last year, as lower expenses masked a decline in revenues.

Science Applications' second-quarter profit rose to $34 million or $0.70 per share from $25 million or $0.50 per share last year.

The company's revenues for the quarter decreased to $952 million from $1.03 billion last year.

Analysts polled by Thomson Reuters estimated earnings of $0.68 per share on revenues of $950 million for the quarter. Analysts' estimates typically exclude special items.

Science Applications said revenues were hurt by loss of the DISN Global Solutions, completion of a program to supply technical support to the Army Reserve and National Guard, and lower material and subcontract revenues on Department of Defense contract vehicles due to delays in the release of contract funding.

Science Applications, which provides scientific and engineering services mainly to the U.S. defense department, commenced operations on September 27, 2013 after spinning off from its former parent SAIC Inc, which was renamed as Leidos Holdings Inc.

"As we near our one year anniversary as an independent company, our strategy to increase shareholder value remains unchanged," said Tony Moraco, SAIC chief executive officer. "Our second quarter results of stable revenue, improving margins, solid cash flow, and predictable capital deployment demonstrate our commitment to executing this strategy."

Total cost of revenues for the quarter dropped to $871 million from $960 million last year. Last year, the company also recorded a restructuring and other charges of $18 million.

SAIC closed Tuesday's trading at $46.09, down $0.23 or 0.50%, on the Nasdaq.