SAIC - Earnings call transcript Q3 2021 | Science Applications International Corporation

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Operator

Good afternoon, and welcome to SAIC's Third Quarter 2021 Earnings Call. At this time, I would like to turn the conference over to Shane Canestra, SAIC's Vice President of Investor Relations. Please go ahead, sir.

Shane Canestra

Good afternoon, and thank you for joining SAIC's Third Quarter Fiscal Year 2021 Earnings Call. My name is Shane Canestra, Vice President of Investor Relations. to SAIC's business Charlie Chief Chief Officer. today are financial Mathis, me Financial Keene, Nazzic Executive joining discuss and our results our And Officer; and October our the Today, results will discuss quarter we ended XX, XXXX. for afternoon, today's be at can call. supplemental presentation investors.saic.com, release, utilized be find found slides also issued to earnings you'll in This we financial which our where conjunction with and in be in these documents, addition along results filed evaluating could of Form to to provided Both XX-Q information utilized soon, be our call. on outlook with our today's today's note that unknown may Please could differ this we make that uncertainties statements and subject forward-looking cause and statements known from on results to on materially call to actual that are made risks call. SEC risks, of our of a refer and Form section Factors XX-Q. you including Risk annual reports filings these report our on quarterly XX-K to discussion for Form the on I

views may to to today, statements future, the of so. and disclaim as but addition, forward-looking we the update We events subsequent point change. to at specifically statements represent in In do obligation some the views our may our any cause elect

our useful In other metrics, provide introduce CEO, GAAP comparable measures now addition, pleasure financial investors, is financial my information slides and release Nazzic and to for our to will and believe we we the most supplemental which discuss Keene. both presentation press reconciliations non-GAAP include measures. It

Nazzic Keene

Thank you, Shane, and afternoon. good

and of third through backlog book-to-bill press history. SAIC's performance reflect release quarter our quarter the strong As today, straight X-year our of our and momentum continue in building results financial reported in SAIC's second continued highest to

SAIC our welfare and they customers to as more rapidly assisting strong that focused Over is environment on the have our known months, for. past the employees, the execution virtual health a program transition and continuing few of we

to are As these steps and also success foundational continue, taken we've SAIC. organizational long-term the that strategic, leadership efforts of

briefly the with cash to flow Internal future. our for consecutive on And we're pleased am before the deliver I discuss of results. discuss but third past revenue organic how X%. third was results. again excellent of I while SAIC and very excluding progress X%, quarter building the of quarter our let year-to-date quarter, impact impacts we've profitability, business positioning our third the basis, pandemic, are shaping on me exclude COVID-XX, the revenues made, was organic the We strong future, generation and growth our if a outstanding development continues for growth temporary growth. you

a cash delivered for While of another balancing profitability we quarter providing return investments our and shareholders, for strong future and the generation.

Our record ability strategy, our recent high leverage with and book-to-bill our organic acquisitions. was to of backlog result and market coupled access refreshed capabilities ratio the from a the

coronavirus serve impacts in pressures, proven the As resilient. we very navigate of the pandemic, to recent and a be both presidential election while the has that immune over we not of continue market to the dynamics to change time

with customers our will customers. solutions aligned is that Our operations business strategically deliver customers' is enduring component provide our advancement our the was continue portfolio digital provide and of government. for solutions Federal. demand attractive growing, and transformation better of priority The to of collective be of rationale strategic our and for acquisition a by It we government of for of the services a Digital win efficient a ability focus to core requirements security, our digital the interest. SAIC's to Unisys offerings the of transformation and on and we critical our for transformation opportunities. need and nation's technology large are continue for

year the and go accounting conversion to resulting At we milestones: successful next beginning the note should will from very the integration opportunities that the one I'm last integration the fiscal of system. well ahead continues of this excited Speaking complete February, the I Unisys of in of acquisition. Federal, our very about

missed. working I from reevaluate meet LaRouche. to customers. and spending, that government positioned mentioned SAIC last and fourth to of on having by past to be experienced Bob President Genter; Sector expect while and building designed align to structure assure opportunity Group will a took continuing to on the led fiscal however, With to our announced after we're closely fiscal several SAIC. September, government resolution, Space, it provided SAIC's operating talented quarter, completed that will shaping is for legacy X Sector the current our key priorities. operate our recently wide we Systems well an Scanlon's our Government retire XX. growth decision its long-term of be have XXXX budget changes of legacy. positioning this there change for by more was recently under by announced transitioning year, which Civilian, We in and and array of we Security were of is customer regard, service the and future. transition, beginning at to years levels retirement, Jim and to success. investments strategy we to a recently year robust we XX organizational and continues team December it is the our Defense He It Jim's In Engility led our be organizational Effective and SAIC President of a led Defense Should substantial that priorities. our personnel continuation In company's Michael successful earlier National system. extended instrumental expiration Jim to conversion sectors:

driving our selling organization realigning and we current by transformation, This engineering streamlined pressing needs, future Additionally, IT U.S. enable our modernization, intelligence. digital to artificial the to most market-driven and and effectively customers' Helfenstein, as our growth including transformation government. we will align Dee with digital Dee delivering strategic imperative of better organization, focus efficiently on digital profitable led solutions organic are horizontal,

the well these critical complex security outlook more if you and rest is Charlie, our results national for and now would space, quarter third year. positioned defense of evolving now support needs, civilian facing the is nation please discuss and to and missions. Our exceptionally financial SAIC

Charles Mathis

of Thank you, performance build the development reflects and year for to strong fiscal free Nazzic. investments of and results customer for strong effective of third solid areas. a continuing fiscal contract across from delivered strategy resulting priority beyond. financial revenues, another SAIC's business another quarter quarter the variety XXXX year and quarter momentum measures in outstanding profitability next of flow while execution and and awards, cash SAIC

significant of The noted historically of business would setting last of press release our in an to were today, significant most a setting to quarter start X.Xx. me contributions book-to-bill all-time quarterly strong quarter awards, development I note Let results. are $X our quarterly high the but billion, also further after bookings proof high a approximately translating of the business X.X, another new business third with for amount Net building development book-to-bill bookings our momentum.

the While the SAIC's in was the submittals the third second second for At record XX% of of billion billion, ago. producing our billion, of quarter. another continued value high submitted $X.X quarter, quarter, total history, quarter, for from XX% well, is up proposals approximately $XX.X the consecutive all-time quarter contract of the contract proposals. amount $XX.X approximately exceptional second the bookings value At backlog of proposals the SAIC's the business from third we a submitted end proposals for as of in at of in value quarter, an end have Also, to increase stood submitted and setting end the and submitted opportunities. year the highest XX% up of new the from

me financial Let results turn now the to quarter. for

the $X.X reflect third million of year-over-year quarter year-to-date Negatively approximately reflect factors quarter total revenues with approximately XX% of X first growth quarters. that program-related billion growth revenues of organic third On a were revenues affecting of organic generally same the contraction revenue resulting COVID-XX flat from X%. headwinds, $XX of Our X%. basis, impacted

headwinds, by of and organic in X% year-to-date, the the grew pandemic. onset Excluding for expectations the COVID-XX prior with the in revenues line to our year quarter X%

were $XXX EBITDA EBITDA of adjusted and revenues. quarter Third as adjusted a million, percent was margins X%

million. prior margins X-month COVID-XX For Net about XX by On margins from up $X a year X.X%, the year-to-date impacted EBITDA are basis points adjusted basis, the quarter, negatively EBITDA period. adjusted $XX $X integration costs, the million costs net and as of intangibles. third million, was excluding per as acquisition diluted restructuring earnings income in was share amortization well and $X.XX, quarter for

Our third expected now we The $X.XX the adjusted tax for for rate to quarter. approximately per and year the quarter per be share was diluted our earnings share effective XX%. tax rate full approximately XX% believe was that

facility. days, quarter was at $XXX sales flow cash quarter cash were an generation. On the of free quarter million, excluding of of have generated impact receivable year-to-date basis, strong outstanding the flow. accounts sale Days XX we free outstanding a the $XXX of million end Third cash

share should shareholders approved January has dividend as $XXX million $XX our we the and and quarterly quarter, release $X.XX ratio delevering cash X.Xx, net rapid previously profile. Directors January capital, XX. dividends that of announced on our in ahead to million of quarter in of ended third leverage our on the During today, We of note deployed million XX $XXX consisting payable Board debt communicated approximately voluntary of mandatory with and $XX press of of of repayment, I respectively. million a record

Now forward our turning to outlook.

release, As provided elements full fiscal noted previously updating we press guidance for our of our XXXX. are certain in year

negative between and revenue expected of we per approximately our about implying between year-to-date revenue $X.XX adjusted $X.XX For million X% the billion COVID-XX, adjusted revenue year midpoint organic unchanged to of the EBITDA to is share impact a This excluded, This profitability, have from an equate if of XXXX, $X.XX. $XXX from growth be profit COVID-XX. would range and X% assume X%. fiscal year. million full of now year to With impact on this based program expected to expect fiscal organic which, and between includes regards continues growth $XX and diluted to billion, $X.X performance, narrowed earnings approximately for raised

continued cash million, than from increase free we flow million confidence, tremendous our to and greater expect flow, or to year-to-date cash of equal cash now free to expectation. previous given $XX $XXX be an our Turning generation

fiscal I'm end last the of announced, earnings call is As previously the the this for retiring my and year, company. at

what As the leadership. last SAIC here more the of excited and highly company an happier what am for the of people. more we over I future holds team, exceptional a for focused with opportunity talented I be not proud accomplished years. wonderfully and future direction has at the its part X the but together SAIC could thankful of about bright have even

to back it for take I'll concluding Now remarks. you

Nazzic Keene

over I over to helped billion four you you, leadership company Thank to thank Charlie $X want started for company his past billion it these years. SAIC a is Charlie. moment from the today. when a $X.X Charlie, transition take you've just to

a been true wish Your steady to hand your and retirement. our in in SAIC. leadership, your and We value best on have the shareholders, to focus all guidance partnership you me

Now Charlie's focusing the future. We effective Natarajan January as Prabu Officer, successor on as our Financial announced recently appointment of X. Chief

on his our well excited shareholders. track join to ability success ready finance Operator, markets team growth the to as value in strategy, markets leadership successfully strategy. We executive He impressive our will long-term bring the questions. value have are execute extremely team proven as key aerospace, as Prabu we're we our record now a positions execute defense take technology our and for given and growth provide in his to tremendous advance of to as creation

Operator

Instructions]. [Operator

Your first William line DiPalma the of with Louie question comes from Blair.

Louie DiPalma

peers The been bookings your XX% up by in yours in fire of has contracts down terms were for the of the industry. average X largest Nazzic, capturing X IT government by XXX%. an your of while team services were on

Revolutionary to that mentioned Services SAIC for chose contract. your in in addition the Army contested Technology prepared the learned billion we Information that hotly $X.X November you the In bookings remarks,

this in didn't You mention RITS remarks. prepared your award

X-part I question. have So a

First, translate the bookings are these growth investors you there how next into share contract? any to are And want allowed to year's details like Army RITS outlook. just that know secondly, for strong

I about think call, you commentary XXXX. last the fiscal provided on some

updated you that if just any be So on the thoughts outlook, would great. have unofficial XXXX

Nazzic Keene

Louie. Thanks, Perfect. Okay.

business so and to optimistic. of question. at We comments still on or this juncture but not commentary and year what's haven't So ours RITS. provide happening environment. provides a done certainly go very the optimistic, procurement it's that of foundation we for at seen, Certainly, the very, open this closely. results we're a next proud the an for development But I'm track business remain certainly the color the I -- time, Thanks on we've the going but -- competitive the to into great more any it math Thanks in particular couple remain very on with.

to is next development the the we're is of year call. a not next so provide for think which that. And we up cycle some about going about investments. We're business optimistic the guidance lots decisions part we as This some you. reasons. and March of until we've fashion updates strategy year do And teeing of make Certainly, a the in strategic shared our annual the design planning organizational strong with and that on in we we're as of

So recompetes in into the year new gives we'll us as color March, give win our you but year. next next our business we're optimism more seeing momentum on that protect ability as going to in well certainly,

Operator

next comes of question line with Your the Kahyaoglu Sheila from Jefferies.

Gregory Konrad

on Sheila. actually It's Greg for

Just -- deleveraging. follow up I to about just on comments wanted your

deployment delevering? you more down? do mentioned you of kind post then mean how are year. of have capital I set pay And for target the thinking to much ahead X.X You that how next about were you debt you

Charles Mathis

there. Thanks. Good question

at $XX We $XXX of all the the of voluntary $XXX already. of million of voluntary $XX of debt made mandatory So through the plan paid this beginning QX, and payments million repayment out we've and a to debt, the mandatory payments. year, we've year laid million million,

year of addition we're from to flow So And has to capacity be debt. ahead paying as that activities capital could this if next will previously in sooner it continues certainly strong The happen for cash than have been, company standpoint. other expected. deployment down schedule

Gregory Konrad

kind just one then of... And

Charles Mathis

I'm sorry.

Gregory Konrad

I'm sorry.

mean look year. guidance, at one quick I we million about COVID housekeeping. impact for you if for talked Just $XXX the the

little I $XXX there Or just steps something million. conservatism? is bit QX? that of up think you're Is at a that in

Charles Mathis

to the of of cases the bit little been we've Yes. resurgence due It's seeing. COVID that being cautious of a

Operator

Jon next of question with Citi. Raviv Your from the line comes

Jonathan Raviv

I'm up question. just that following on

the big full implies looking at a organic it Just year guidance, sales pretty in step-up XQ.

baked in COVID You there. also conservatism have

like growth takes trying positive to from negative XQ? what organic growth in I'm understand, So pretty you to organic good

Charles Mathis

that say growth that you is QX momentum are as we expectation, there have organically. had been see, challenges some just I strong in Well, goes. far right the building. And you has the as not has A few revenue the that, fast that as with And won will ramp earlier There's been ramped tremendous up of in the programs, ongoing environment we new transition to COVID have up the year effort challenging. but that and business these programs as we expected. the a as would

not this that historical sets up does It we're get because these strong, So slow ramp-up. to forecast higher sets But up QX to, are be the end of bookings, to that have. bookings to look year able all of next we to that I be revenue we believe, hoping robust. with quite

Jonathan Raviv

FY And sure you quick won't as call that then you'll for last Charlie's cadence to 'XX especially not multiyear about It guidance. which speaking a cash but I'm goal asking the about talked year-end, the be about well. follow-up. cash flow that into Prabu me Thanks just be some about,

$XXX FY sort of how million? sustainable towards on -- updated trending 'XX are just any the really So any thoughts in things and

Charles Mathis

$XX talked full years, as expectations million year would target I the has $X over as Thanks, million, only $XXX changed. to now, we're we generation $XXX that Well, expectation about of with not Jon. the that say shy earlier. million the cash can of I far billion as the very say of date, of pleased X the

So we there. would be still

Jonathan Raviv

Charlie, and Thanks, congratulations.

Charles Mathis

Jon. Thanks,

Operator

Your comes from next Seth JPMorgan. line question with the Seifman of

Seth Seifman

things in the in what's Really backlog you especially. on can in over terms mix us as of that's in the the business contract us that in you tell customer in terms terms in of it there, of means mix EBITDA and things past think future into the book what EBITDA I the you the adjusted months? what's there the guess backlog and the tell look about you based some terms X in what margin impressive quarters of the X of growth about what's of grown and embedded past mix -- over the those type of of and

Nazzic Keene

really next next is more Nazzic. we've the especially we've up last with frame. over little our that as business, the all of where years. of a we been to I'll that how the fiscal -- course consistent year, we've provide as it's shapes try of specifics couple But provide strategy about time March holding of it business, to for This been in we'll the think where The bit color. winning outlined year's

really development the well of our and by our last in years and has business engineering fueled our as acquisitions been focused by solutions. our done strengthening our as diversification what have bookings growth, do strategy It So portfolio across in portfolio we've both our IT. around been fueled we that couple and the

our is in our driving I And in the seeing, our so the to talent and say And we're core markets just well. very focus incredible as momentum with have our just we're that solutions. it SAIC sits core very with consistent and areas, pleased that

Seth Seifman

of that kind the have laid And you past? in out guys goals margin with consistent the

Nazzic Keene

until we it's time it. -- going It's we're the provide again, to think way I about probably March guess there's a we portfolio. to the not guidance consistent that best frame to but -- get

Seth Seifman

just for Okay, at for fiscal as as towards your where quarter not Great. maybe we from look across year widespread about the And see there quarter maybe or we a quick start -- and being 'XX? I on Should until the sectors then second follow-up the another then of the middle where over we impact there's from guess okay. to distribution. move -- maybe vaccine all virus everyone the think some course April of

Charles Mathis

Yes.

So question. good it's a

year. impact for quantify COVID us of to So next we any for certainly think fiscal premature it's a type bit

I think that's what you're asking.

watch soon year, or to we go not stretch last. recently, We would closely. of into it going next how we're much And it that But next continuing a into will it believe. see well do don't it how number of it's the too large to we say Given year. know cases

Operator

Rumohr of von Cowen. the Your Cai comes question from next with line

Daniel Flick

for your is mind NASA and This Dan Would updating us NICS Vanguard? of expected on left what's AMCOM of for bigger some upcoming on Cai. and the you particularly recompetes, timing

Nazzic Keene

Sure. This is Nazzic.

So first remaining. that won on one and X of those about in will AMCOM, that December-ish X be as X you first time the there's believe the significant that. ones very pleased chute we And for recompete out of know, the awarded we And the frame.

we the the of time next remaining And understand over in be of the the to the March, hopefully, It's be X course will into April few January those ones what large weeks. So case now. frame.

So year. summer of for of our big is XXXX. those next NASA chunk a recompete NICS are portfolio certainly

we've months is Fiscal year recompete of we also several will 'XX got recompete for one be portfolio. are really our the a go 'XX. other us. into the So lighter chain supply there. And most big recompetes MRO the as PB significant Those and the year

So different we're year bit in. normative fiscal every was year this more a a little has year that This profile.

Next will little be year a bit lighter.

out also bodes driving answer Does invest to as that years being So the growth able well. for well in that your in question?

Daniel Flick

Absolutely. helpful. really Yes. That's

be would been that I down? expected booking are the to on? and to the prospects maybe into Like so Just then some where given on point next as -- topic, capturing you give few you mean for on more strong. just it's well you than there quarter the able quarters slows earlier fourth guys a color that Is

Nazzic Keene

Well, I think...

Daniel Flick

Anything there.

Nazzic Keene

about way the it all guess lumpy. bookings We are talk is that. I'd know that I

-- that's business. nature so just And of and the the

able proposals strong still we been bookings we confident as to momentum we've at quarters. couple about for see Although we of we indicated, next that the number least the the and of -- Charlie submitting have, with being are, feel

Operator

comes question the Sommer next line with Securities. Truist Your Tobey of from

Tobey Sommer

with interpreting buyers for the extend next updated your thoughts demand at are point to COVID the and future? the the this sort point on or respect -- With what or at into impact, impact it's recouped disruption might -- outlook to an year, of looking this might point at that small and whether and some demand how not be at the deferral these the in

Charles Mathis

Thanks, Tobey.

that chain just having intel the then operational us, in labor on reduced to reduced training chain I for and and again, areas the majority biggest to is Those back, the of it's the supply impact that community. continue around, will ready-state related to us impact business, reduced the all impact that's the that the that the that And this. the due FAA tempo. and are X reemphasize So gets Whenever turn operational has the on tempo. the are the area areas be supply revenue

more this think that run kind a of to around, probably that year. we as into a starts next turn to will rate, As back it get or quarter soon normalized be would but certainly so

Tobey Sommer

new ramp guiding though -- pandemic ramp wins, looks look to going that So for we different year, if we're scenario? have you're for to it. extent the to and a model at contract talk which those in could your the even about not next ability you Just important to us, your

us could the you So ramping be kind any would give of helpful. of comments about those

Nazzic Keene

Yes. Nazzic. This is

can seeing. I is that general what think share in things some I we're do

to slower they a We slower little to when the are where to due they there cases, transition. bit and in able seeing, to some be have a people ramp little facilitate and being need COVID to greatly transition help need be,

cases, that seeing of So transition COVID into some wins more It's hard in bit take frame. that this I I that that contract seeing, little saw little some going think facilitate in some and an a a longer. do to we're expect a But we is every to result different. year. as are We see quantify, year. next we'll is time these new that, anomaly bit the of that

overarching think dealing it so reality an from I what of about just And that as with. would we're

Tobey Sommer

terms Last that interesting like on question firm us in any what for areas an of hold new capabilities your Could kind you of are to add? for me of acquisitions now. from give you'd update or kind the

Nazzic Keene

Yes. Absolutely.

in this about, our before. course. probably we're heard to talk able to going capital we've you've we feel But accomplish have said, what being of year industry, about feel consistent seat When make with pay year, about talked sure we it's -- down great what next laser-focused that just with there's Charlie the on we and really deployment, paying me to continue into So debt at But that just as attention. a the activity want table. been

areas a Public over portfolio. the we but example driving growth there's where believe course the a -- have also of not federal of opportunity a area several that the area in there's is sustained, footprint, an in years. tremendous in next an will our it's an government. we So It's big couple be sector health

And rights was so could example be be in that at price right would acquisition come an time those market if which the of the together right and there a all at the right interesting for us.

be AI The is do areas. extent an some in tomorrow's that market another as just could market, be a footprint example strengthen that today's we other in good would for that the technology where skills we competencies interesting Like area -- would great but of there, we well. to got be the could -- and news and we've

to a are come. focused of the our have we quarters flexibility for that those in ensuring debt you, couple examples we that So are but on down and paying

Operator

Joseph comes next with of the from line question Stifel. Your DeNardi

Joseph DeNardi

question I'm a bit going growth to try differently. and the little ask organic

of peers eventually double-digit is book-to-bill up your growth. should longer put consider organic there kind more your converted of of into be we book-to-bill able the of or have of kind to Xx nature into organic growth? recompete Is skewed your Some of not should towards terms -- would double-digit why that it duration it that whether bookings, convert in a a that Xx anything who about have been

Nazzic Keene

couple as leading bookings the the come. indicator investor a competitor, One, comments. -- book-to-bill or and a of Well, a are I whether growth guess of to

confident well about the work. And been bookings. very So couple very a is indicator takeaways foreseeable we in several able areas believe or with or our we for of pleased and as some that new our feel next strong We're that, protect we've to, quarters which work optimistic again, as the years.

that and certainly does indicator. has color time, I I it's a indicator, agree a contract what March, contract do leading an different with has growth. it suggest It's Every duration. give indication of we'll and can't you in more ramps. your at give an What So is you that Every is. different analysis this

for we're that that And we provide like in so looks so the doing that -- that's all and you work for can year. March what today next

Joseph DeNardi

Okay. what to just Could clarify you Unisys down had from It into flat couple what the maybe the a And revenue little growing quick back it of the follow-ups. quarters, you two been then albeit if And bit. looks in past revenue nicely. reduction to just modest? kind contribution of guidance was be drove

So driving can that and performing what's how business about talk overall you maybe thus that just is far?

Charles Mathis

me let the there. about reemphasize revenue So guidance just

And was that So year a again, few that fast, won to in expected earlier new to the the ramp we again, didn't that business it up of can programs attribute COVID. we happen. it -- you maybe

to effort there But was programs. haven't attributed transition We ramp COVID. these and tremendous ongoing up a to

fast enough the hit we for we in it quarter. up first these, for of Some won the just didn't revenue to second get and quarter, But challenging, ramped this be the environment year. COVID to proved

the we term. Joe, an as wins, expectations the thesis far had As there, Federal new capabilities as outstanding far Unisys as the deal has purchased far year Federal, as meeting when Unisys over and long the growth of as company

Unisys where future. and is and the in pretty outlook Federal contribution So that they the about we make will good the feel

Shane Canestra

was Joe, this thing that bought contract, fairly to something Federal, Unisys have contract is one tag it -- Shane. Charlie the called add just on I And us said, could nature. or prior I believe a BEMS purchasing if sizable what to them, of

of loss. this because knew be more out and fourth anniversary-ing quarter modest would that that the in profile the quarters So the than of third we second year's

acquisition. a was at the that known So

being the anniversary more was just back out say about of your the So will, about that about we're the not if the comment as the that profile but of year I you that flattish, kind we would going actuals, to contract. report half knew of

Operator

[Operator Instructions].

of next Parsons Goldman question comes Gavin Sachs. from the Your with line

Gavin Parsons

So even the with bookings. record pipeline is your growing

if then and wins. important increasing know I higher don't you're a there's at you was what well expanding a rates, on most bidding and -- win your disclose is rate you're market you if But actual could are expanding. think is factors as that winning addressable of I clearly, So driving or handful you as if on pipeline single comment but wondering

Nazzic Keene

question. I would accomplished quarter say different, again, is Yes. lumpy, this are No. Great but both. year, every we bookings have and

been more we've ahead as here able quarters sit up we our of the bid to So win today. obviously. rates And are

rates had So win exceptionally we've our always in recompetes. strong

would And great acquisitions, foundational. own, performance, solutioning, Certainly, value on But have couple of which our things. of market as rates the the I giving to so new up and strong gone that well. recent its held the customer us talent a business strength is that's past I win access. And strong touched and and very attribute

strategy that's on really -- so the great focusing and areas so impact being bring important that we're and compelling bear to us. And customers. think focused We solutions the our to transparent to for areas able differentiate are in we've been very -- our I had us, a

business bit been new it's and and us and our driven a compelling be bear. think and focused, be I So SAIC able deliver our to underpinning which always does, with to is that an bookings little to able some to has excellent several stay continue that to wins. in then of win bring in success on the keep able momentum solutions drive it's customer, to new of focused really stay kind of the to things strategy, fashion the that just intention And

Gavin Parsons

I XX%. Great. And think about said it's year, recompete next then you

quickly. your current we has to wanted rate grown relative just duration recompete few the on What backlog of to over your next pretty expect base? ask revenue I should that decline And the visibility. The So is to years? backlog

Nazzic Keene

Yes.

of point So just for a clarification.

up our fiscal be our recompete. which For we've fiscal XX% year, got 'XX, of our are revenues about next year for that will

lighter So normal. it year a is than little

the get that's I on to part was I'm that just sorry. the table. second of -- question? the wanted What so And

Gavin Parsons

your was That for already reduce like going that. makes the that. just rate statement. I sounds have backlog your but apologies sense, done would Sorry, might asking if recompete current it it forward,

Nazzic Keene

AMCOM, next MRO, Certainly, the in ones our we NICS successful And for our Yes. of PB significant recompete had in are year. recompetes some and NASA close risk that will year. we out most when recompetes this retire and

Gavin Parsons

on then And last Great. one just question revenue.

relative year-to-date. is think million the to $XXX $XXX million I in guidance

larger headwind last COVID than a in expect you quarter? So this XQ does that imply had quarter you or

Charles Mathis

Yes.

a just little me clarify let bit. that So

QX. in about looked the We've here impacts, impact of again, $XX we we I was the like million cautious we quarter per went million, consistently that when think quarter been running first Also, $XX it. been probably So quarterly stated. impact and average back the when kind revenue have what in at you

over is attributed there's change the And back overall so it's can but Didn't it's to far of was that pretty million consistent detail slightly that announced And QX, but ahead with going probably certainly that that million you of goes, the $XX it. when in to that really $XX QX as $XX as go amount. Shane we QX. range. part million, in

Operator

Jon comes Citi. Raviv question the next with line of from Your

Jonathan Raviv

more as question sort bit Prabu just and Nazzic, Grumman of firm. him call you bit of we in When of on about is prepared about I I Grumman. your a talked wait product a until from perspective the is -- a well, he's a but of remarks. a maybe on know bringing coming little just can Northrop your him Northrop in. kind think him,

you're not certain To peers that ran not and guys you sort extent, it's been said in episodic. been have some over products He really You of have interested, interested M&A not guys there. a your while historically of are.

way of background large sort those in particular with I'd thinking So given his like defense a of things anyway, say, any, prime. about just evolution the you're some

Nazzic Keene

And I forward meeting him. No. to look you

very in about and As broad a background from. his Prabu, technology, -- well incumbency where got in thought he's But as commercial captured and we we services, coming aerospace. as defense certainly certainly in he's

diversification the is is suggest SAIC. It to form a in does change in or will I'm very value for his that and really background fashion. any add us, our it he strategy of not compelling confident tremendous that So

Operator

no are turn at questions will back There further over this I time. to Mr. Canestra. call the

Shane Canestra

Thank you call, Quarter SAIC's in participation This thank in Fiscal concludes for for interest XXXX Call. your and Earnings we you very continued the your much Year Third SAIC.

Operator

Ladies today's call. conference and gentlemen, concludes this

now may You disconnect.

Science Applications International (SAIC) 3 Dec 202021 Q3 Earnings call transcript