SAIC divests State and Justice contracts

By Marjorie Censer / September 3, 2020 at 9:54 AM

Science Applications International Corp. said this week it has sold off several State Department and Justice Department international law enforcement support contracts as it culls its portfolio.

In a call with analysts yesterday afternoon, Nazzic Keene, SAIC’s chief executive, said the company acquired the contracts as part of its purchase of Engility.

But they “were not viewed as strategically important to our strategy or our future.”

“They were also dilutive to our margin profile and not financially material to the company,” Keene added.

Meanwhile, SAIC said the ongoing COVID-19 pandemic lowered quarterly sales by about $65 million.

The pandemic’s impact was “primarily driven by reduced volume in our supply chain business, lower [Federal Aviation Administration] training service revenues, and uncertain profit recovery on ready-state labor.”

The contractor reported quarterly sales of nearly $1.8 billion, up 11% from the same three-month period a year earlier. SAIC said quarterly profit totaled $51 million, down 11% from the prior year.