Nazzic S. Keene
Chief Executive Officer
SAIC took steps forward to become a company with $7.1 billion in
pro forma annual revenues. With Engility and Unisys Federal, we are well positioned to be the preferred technology partner in the industry.
Fiscal year 2020 annual Report
Letter from the ceo
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FY20 Annual Report
$6.4B
REVENUES
Free Cash Flow
$437M
Adjusted
Ebitda Margin
8.4%
$7.1B
REVENUES
25,500
Employees
Hold A security Clearance
55%
TECHNICAL
CERTIFICATIONS/
ACCREDITATION
7,700
in Fastest Growing segments:
SPACE and digital transformation
Dominant
position
Organic and acquisitive growth driven by the best talent in the industry, differentiated solutions, and strategic focus on market-driven areas.
Pro forma*
SAIC FY20
* Pro forma trailing twelve month revenue as of SAIC’s FY20 Q4 and Unisys Federal’s FY19 Q4
PROVEN PERFORMANCE
Industry
InNovator
Award
LGBTQ
Equality
#1
$50K
$400K+
$420K
INTERNET OF
BATTLEFIELD THINGS
BEST PLACE TO WORK
WOMEN ON PUBLIC COMPANY BOARDS IN GREATER D.C.
SCHOLARSHIPS TO
SUPPORT CAREERS IN CYBERSECURITY FOR VETERANS
raised to provide mortgage-free homes for eight wounded veterans since 2013
raised through employee fundraising and SAIC contributions in FY20
A culture that is inclusive, embraces a flexible working environment, and encourages employees to make a difference inside and outside the workplace.
Purpose-driven Organization
Hover each box for more details
We strive for a work environment where employees are engaged,
motivated, and fulfilled by their careers at SAIC.
Nazzic S. Keene
FY20 Financial Highlights
Corporate
Directory
Previous
Annual Reports
SAIC Investors Website
FY20 Financial Highlights
Corporate
Directory
Previous
Annual Reports
SAIC Investors Website
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CEO's Letter
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CEO's Letter
Nazzic S. Keene
Chief Executive Officer
We will prioritize the most compelling opportunities by focusing on a few market-driven areas that include:
We are at the forefront of where our customers are going and they look to us to deliver on their important missions. Our strengthened commitment to our refreshed strategy will continue to guide us as we look to make a profound difference for all of our customers, employees, and stockholders.
Space systems and mission engineering that takes advantage of SAIC’s leadership and ensures our nation’s dominance and resilience in space;
Mission engineering and integration across the Department of Defense’s systems modernization communities to ensure our nation has the most advanced technologies to stay ahead of our adversaries;
And, modernizing and managing our nation’s critical IT and enterprise infrastructure to gain efficiencies with digital transformation and cloud solutions, improve cybersecurity, enable increased analytics, and improve the citizen experience.
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The spread of the COVID-19 virus has quickly altered many aspects of our lives, but I am confident that, as a nation, we will remain resilient and will overcome this challenge. Due to the nature of our business, we have seen minimal impact to our operations to date as we leverage our strong IT infrastructure and partner with customers who have largely accommodated our ability to support their missions remotely.
The government services market is very resilient to challenges. We have mission-essential work, long-term contracts, a flexible operating model and cost structure, and financially-stable and supportive government customers. Moreover, the cloud-based services, automation capabilities, predictive analytics, and other advanced solutions SAIC provides our government customers are more critical than ever as our nation addresses and eventually recovers successfully from the pandemic.
More than ever, we are in a strong position to grow across our portfolio, especially in strategic markets such as space and intelligence, and by driving digital transformation for the U.S. government through IT modernization and digital engineering solutions. With greater customer access and technology leadership in differentiated solutions, we are poised to convert opportunities to revenue growth, capture value from synergies, and substantially increase our profit margins and cash flow generation.
The Future
We are a company of 25,500 talented and dedicated employees. We attract and retain the best talent by fostering a purpose-driven, mission-focused, inclusive, and flexible working environment. We are also proud of our strong culture that encourages our employees to make a difference inside and outside the workplace.
In FY20, we laid the foundation for several new or improved programs focused on the employee experience to set us apart from our competitors. With our highly skilled technical talent and increased workforce competition across our industry, retention is critical to our company. Our employee experience initiatives reflect an enhanced emphasis on flexibility, and empowering our people to manage their work schedules and leave time, including an optional flexible 9/80 work schedule with alternate Fridays off. We have already seen a positive impact with these initiatives.
SAIC is deeply committed to an inclusive and diverse workplace. I am proud to lead a premier technology company with 50 percent of the board of directors consisting of women, and inclusion is encouraged at all levels of the organization. Our programs provide a voice and sense of community to our diverse population. We strive for a work environment where employees are engaged, motivated, and fulfilled by their careers at SAIC.
of the board of directors consisting of women
50%
Work
Schedule
9/80
Employee Experience
In FY20, we delivered strong profitability and cash generation that met or exceeded our performance goals. While revenue was essentially flat primarily due to revenue dis-synergies from the Engility acquisition, we improved adjusted EBITDA margins by 80 basis points and increased our year-over-year free cash flow by $281 million to $437 million.
Our $15.3 billion of total contract backlog is the highest in the six-year history of the company and is a strong foundation for revenue growth. FY20’s strong business development results has positioned SAIC well for growth in FY21, while increasing our pipeline of opportunities in identified strategic markets.
In FY21, I look to continue our accelerated, profitable growth by increasing organic investments in key strategic areas and leveraging our new market access and capabilities from the Engility and Unisys Federal acquisitions.
Our work in space and the intelligence community have seen impressive recompete and new business contract wins against the backdrop of the Engility integration. It’s a great example of our team’s ability to embrace the exciting, expanded opportunities that are now available to SAIC, and our laser-focus to bring mission-critical technologies and specialized expertise to our customers.
Performance
The successful acquisition and integration of Engility positions us well in the important strategic areas of national security and space. This is clearly demonstrated by contract awards, in these markets alone, of more than $2.8 billion last year. We are essentially complete with the integration of Engility and have achieved almost all of the $75 million of net cost synergies; we have a few more synergies to realize in fiscal year 2021, but are well in advance of our initial plan.
As I look ahead, I am confident we can successfully integrate Unisys Federal, and further accelerate SAIC’s position as the leader in IT modernization. With Engility and Unisys Federal fully integrated in the SAIC portfolio, we take a dominant position in two of the fastest growing segments in government—space and digital transformation.
Successful Engility Integration, Turning Focus to Unisys Federal
With our refreshed strategy to guide us, SAIC took steps to become the $7.1 billion*, 25,500-employee company that we are today. With the addition of Engility and now Unisys Federal, we are well positioned to be the preferred technology partner for our customers powered by the best talent in the industry.
In August, following a smooth transition of CEO responsibilities, I assumed the role of leading SAIC’s next steps in our journey to become the leading technology services provider to the U.S. government. I am honored to continue SAIC’s 50-year legacy and to serve our employees, customers, and stockholders.
As CEO, I immediately focused on three areas: the successful integration of Engility, accelerating profitable revenue growth, and winning the war for talent. Throughout FY20, we made substantial progress in these areas and are well positioned to achieve our goals. This allowed us to make significant strides towards long-term growth in identified strategic areas, while preserving predictable growth from our core markets.
25,500
Employees
FY20*
$7.1B*
FY20
$6.4B
FY19
$4.7B
FY18
$4.5B
* Pro forma trailing twelve month revenue as of SAIC’s FY20 Q4 and Unisys Federal’s FY19 Q4
Fiscal year 2020 was an exciting year for SAIC with a refreshed strategy, the addition of Engility, and the continued commitment to make a profound difference supporting our customers’ missions through exceptional talent coupled with new capabilities, solutions, and technologies.
Dear Fellow Stockholders,
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