Science Applications International (SAIC) announced financial results for the fourth quarter ended January 30, 2015. Q4 total revenues were $952 million compared to $941 million during the fourth quarter of the prior year.
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Total revenues expanded from the prior year due to increased material volume on supply chain contracts and from revenues on newly awarded programs. These increases offset lower revenues caused by the continued impact of programs that ended in the prior year and lower activity on in-theater logistics programs.
Total revenues for the fiscal year were $3.89 billion ($3.84 billion excluding revenues performed by former parent), compared to $4.12 billion during the prior year ($4.02 billion excluding revenues performed by former parent).
The contraction in revenues is the result of the continued impact of programs that ended in the prior year, including DISN Global Solutions (DGS), an Army Reserve and National Guard technical support program, and lower activity on in-theater logistics programs. These decreases were partially offset by revenues on newly awarded programs and increased material volume on supply chain contracts.
Operating income for the fourth quarter was $59 million (6.3% of revenues), up from $56 million (6.0% of revenues) in the prior year period. The increase in operating income was primarily due to overall strong program execution resulting in net favorable changes in estimates on contracts.
Operating income for the fiscal year was $240 million (6.3% of revenues excluding revenues performed by former parent), up from $183 million (4.6% of revenues excluding revenues performed by former parent) in the prior year.
The increase was primarily due to the absence during the current year of separation transaction and restructuring expenses as well as strong current year program execution resulting in net favorable changes in estimates on contracts.
Net income for the fourth quarter was $36 million compared to $33 million in the prior year period. The increase in net income was driven by consistent operating income and a current quarter decrease in our income tax expense. Net income for the fiscal year was $141 million compared to $113 million in the prior year.
Net income increased due to the above described increase in operating income, partially offset by interest expense on debt obtained in September 2013 in conjunction with the spin-off transaction.
Diluted earnings per share was $0.75 for the fourth quarter and the weighted-average diluted shares outstanding during the quarter was 47.6 million shares. Diluted earnings per share was $2.91 for fiscal year 2015 with weighted-average diluted shares outstanding during the year of 48.5 million shares. ■