SAIC CEO says company has seen 'minimal impact' from COVID-19 so far

Science Applications International Corp. has experienced "minimal impact" from coronavirus so far and expects the government services market to remain resilient, the company's chief executive said this week.

In a call with analysts Thursday evening, Nazzic Keene said the company has not seen any major disruptions.

"Our federal government customer is largely less economically sensitive with a significant portion of the work we perform considered mission-critical," she said. "This frequently minimizes the impact of these types of disruptions."

Keene praised the cooperation SAIC has seen from its government customer in adapting to the challenges posed by coronavirus.

"To date, they have been very collaborative, very supportive," she said. "There is everything from letting folks work from home, work remote to looking for opportunities to do social distancing inside of the facilities that support them today."

Still, Keene said she expects SAIC to see some effects over time.

At this point, "we've had minimal impact," she said. "But again, we know we're early in the cycle. We would expect over time to potentially see a bit more."

Meanwhile, SAIC said sales in its most recent quarter totaled $1.5 billion, up 29% from the same three-month period a year earlier. The contractor reported quarterly profit of $59 million, up from a $9 million loss the prior year.

For its fiscal year 2020, which ended Feb. 1, SAIC announced sales of $6.4 billion, up 37% from the prior year. Profit for the year totaled $226 million, up 65% from its FY-19.