Science Applications International Corp (NYSE: SAIC) has posted better than expected results for the third quarter of FY 17, leading to the stock rise of over 2.8% in the after-hours session. Overall, the net income for the third quarter grew $1 million against comparable year primarily due to lower interest expense as a result of refinancing of the long-term debt in the prior year ($3 million, net of tax) partially offset by an increase in the effective tax rate. Meanwhile, the total cash flows provided by operating activities for the third quarter were $80 million. The $73 million decrease in cash provided by operating activities compared to the prior year quarter was primarily driven by delayed customer collections ($69 million) and a prior year return of working capital investment in Marine Corps platform integration and IT services programs ($24 million), partially offset by a decrease in payments for trade-related payables due to normal fluctuations in the timing of activity ($22 million).

SAIC in the third quarter of FY 17 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 85 cents according to Zacks Investment Research. The company had reported the adjusted revenue growth of 3 percent to $1.15 billion in the third quarter of FY 17, beating the analysts’ estimates for revenue of $1.11 billion.

Moreover, the revenue grew due to higher revenue on new contracts supporting NASA, the U.S. Army and the Environmental Protection Agency (EPA) ($56 million), partially offset by the completion of contracts and other net decreases across our portfolio. These decreases include the loss of an IT integration contract supporting the Department of Homeland Security (DHS) ($14 million). The Company’s internal revenue growth(1) for the third quarter was 3.0%.

Furthermore, in the third quarter of FY 17, the net bookings were approximately $2.6 billion, that shows the book-to-bill ratio of approximately 2.3, and marks the second quarter in a row SAIC has set a new record for highest quarterly bookings. SAIC’s estimated backlog of signed business orders at the end of the third quarter was approximately $10.7 billion of which $2.6 billion was funded.

In addition, during the third quarter SAIC had deployed $59 million of capital, which consists of $39 million in plan share repurchases (562 thousand shares) under SAIC’s previously announced share repurchase program, $12 million in cash dividends and an $8 million term loan repayment.