SAIC says COVID-19 cut annual sales by about $250 million

By Marjorie Censer / March 26, 2021 at 9:20 AM

Science Applications International Corp. reported this week the ongoing COVID-19 pandemic reduced sales in its most recent fiscal year by about $250 million.

"These impacts were primarily driven by reduced volume in our supply chain business, lower [Federal Aviation Administration] training service revenues, and profit recovery on ready-state labor," the contractor said.

SAIC said the pandemic cut sales in its most recent quarter by about $80 million.

Meanwhile, the company reported quarterly sales of $1.7 billion, up 11% from the same three-month period a year earlier. The increase was primarily because of its acquisition of Unisys Federal. If the acquisition were excluded, SAIC said, sales grew by less than 1%, primarily thanks to new business with civilian agencies and the Air Force.

Quarterly profit totaled $62 million, up 5% from a year earlier.

For the year, sales totaled $7.1 billion, up 11% from the prior year because of the Unisys transaction.

"Adjusting for the impact of acquired revenues, revenues grew 0.6% due to new business primarily supporting the intelligence community and U.S. Air Force, and increased volume on existing programs," SAIC said.

Profit for the year hit $209 million, down almost 8% from the prior year.