Reston, Virginia-based government IT contractor Science Applications International reported $1.76 billion in first-quarter revenue, up 8.8% from the same quarter a year ago. The increase was fueled by its acquisition of the federal services IT business of Unisys Corp., Unisys Federal for $1.2 billion, and new U.S. Air Force and intelligence agency contracts.
Acquisition and integration costs held back operating income. As a result, net income fell 35% to $36 million.
SAIC also estimates a first-quarter impact from the COVID-19 pandemic of approximately $33 million in revenue, driven by SAIC employees’ and subcontractors’ inability to access facilities to perform customer contracting work.
SAIC’s acquisition of Unisys Federal added $1.5 billion to SAIC’s backlog of signed business, which stood at $16.6 billion at the end of the quarter.
It was SAIC’s first major acquisition since January 2019, when it completed its $2.5 billion acquisition of Chantilly-based Engility Holdings.
SAIC is one of the largest government IT contractors in the D.C. region, with 6,500 employees locally and 23,000 globally.
In May, SAIC was added to the Fortune 500 list, ranking No. 466.
