SAIC Inc.'s fiscal second-quarter profit rose nearly 54 percent thanks to a refocus on areas such as cybersecurity.
“We continue to balance our resource allocation among internal growth efforts, merger and acquisition activity, and share buybacks to promote long-term growth and increased shareholder value,” said Walt Havenstein, SAIC chief executive officer. “I am pleased by the new business opportunities arising from stronger bookings year-to-date, our record high number of submitted proposals awaiting decision, and also the prospects of Reveal Imaging Technologies, Inc., which we acquired just after the end of the quarter.”
The McLean-based company reported earnings of $189 million (50 cents per share) in the three months that ended July 31, up from $123 million (31 cents) a year earlier. Revenue rose 2 percent, to $2.79 billion, something which Havenstein attributed to the royalty rights SAIC received in the transfer of certain patents to VirnetX, Inc. and the settlement of litigation against Microsoft Corporation relating to those patents.
“We are pleased with the successful conclusions reached in both the royalty matter and the long-standing dispute with Telkom South Africa,“ CFO Mark Sopp said. “We'll use these cash proceeds to fund ongoing growth initiatives consistent with our long-term strategy.“