Science Applications International Corp (NASDAQ:SAIC), a leader in technology integration, stock fell 1.13% (As on September 6, 12:13:51 AM UTC-4, Source: Google Finance) after the company reported a steep decline in net income in its second quarters versus a year ago when the company benefited from the sale of a business while sales were up slightly on gains in both operating segments. Operating income as a percentage of revenues decreased from the comparable prior year period primarily due to the gain on the sale of the Supply Chain Business ($234 million) in the prior year period, and contract completions, partially offset by ramp up in volume on existing and new contracts. Adjusted EBITDA as a percentage of revenues for the quarter decreased to 9.4% from 9.8% for the same period in the prior year primarily due to contract completions, partially offset by ramp up in volume on existing and new contracts. Cash flows provided by operating activities for the second quarter decreased $12 million compared to the prior year quarter, primarily due to higher cash used from the Master Accounts Receivable Purchase Agreement (“MARPA Facility”) in the current year, partially offset by timing of collections, lower tax payments in the current year, and other net favorable changes in working capital. During the quarter, SAIC deployed $226 million of capital, consisting of $201 million of plan share repurchases, $19 million in cash dividends, and $6 million of capital expenditures.

Moreover, net bookings for the quarter were approximately $1.2 billion, which reflects a book-to-bill ratio of 0.6 and a trailing twelve months book-to-bill ratio of 1.1. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $4.2 billion was funded.

SAIC in the second quarter of FY 25 has reported the adjusted earnings per share of $2.05, beating the analysts’ estimates for the adjusted earnings per share of $1.86. The company had reported the adjusted revenue growth of 2 percent to $1.82 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue of $1.79 billion. This is primarily due to ramp up in volume on existing and new contracts, partially offset by contract completions.

Additionally, subsequent to quarter end, the Company has declared a cash dividend of $0.37 per share of the Company’s common stock payable on October 25, 2024 to stockholders of record on October 11, 2024.