Science Applications International Corporation

Good morning. My name is Rex, and I will be your conference operator today. At this time, I would like to welcome everyone to the SAIC fiscal year 2023 Q2 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you.

Good morning, and thank you for joining SEIC's second quarter fiscal year 2023 earnings call. My name is Joe DiNardi, Vice President of Investor Relations and Strategic Ventures, and joining me today to discuss our business and financial results are Nazik Keen, our Chief Executive Officer, and Prabhu Natarajan, our Chief Financial Officer. Today, we will discuss our results for the second quarter of fiscal year 2023 that ended July 29th, 2022. Earlier this morning, we issued our earnings release, which can be found at investors.saic.com, where you will also find supplemental financial presentation slides to be utilized in conjunction with today's call and a copy of management's prepared remarks. These documents, in addition to our Form 10-Q to be filed later today, should be utilized in evaluating our results and outlook along with information provided on today's call. Please note that we may make forward-looking statements on today's call that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from statements made on this call. I refer you to our SEC filings for discussion of these risks, including the risk factor section of our annual report on Form 10-K, quarterly reports on form 10 Q in addition the statements represent our views as of today and subsequent events may cause our views to change we may elect to update the forward-looking statements at some point in the future but we specifically disclaim any obligation to do so in addition We will discuss non-GAAP financial measures and other metrics, which we believe provide useful information for investors, and both our press release and supplemental financial presentation slides include reconciliations to the most comparable GAAP measures. The non-GAAP measures should be considered in addition to and not a substitute for financial measures in accordance with GAAP. It is now my pleasure to introduce our CEO, Nazik Keen.

Thank you, Joe, and good morning to those joining us today. As we look for new and differentiated ways to tell our story and articulate what makes SAIC unique, I want to start a new earnings call practice and highlight a member of the SAIC team whose performance and contributions exemplify our culture to give you a deeper understanding of who we are. Our purpose-driven culture is part of what underpins our success, and in a month in which we honor our first responders, military members, And so many civil servants who protect us day in and day out, we believe it's even more important to celebrate our own leaders who serve our government. In prior calls, we have discussed SAIC's leadership as a top employer for veterans as evidenced by our number five ranking in Forbes' most recent list of top employers for veterans. In addition to this, we were recently notified that the National Veteran Small Business Coalition named SAIC as Contractor of the Year. Just as impressively, Rita Brooks, the leader of our small business organization, was named the Veteran Small Business Advocate of the Year for 2022. These recognitions reflect Rita's efforts, that of her team, and SAIC's commitment as advocates for the veteran small business community, and we are very proud of this acknowledgement. Working effectively with the small business community, and in particular those led by veterans, is an important part of our teaming strategy. A heartfelt congratulations to Rita and the small business outreach team at SAIC. Shifting from some of our recent cultural successes to our financial results, I'm pleased with our performance in the quarter as we delivered revenue, adjusted EBITDA margins, and earnings consistent with or better than our plan. As a result of our performance to date, we are increasing guidance for fiscal year 23 revenue and earnings per share, which we detail on slide 13 of our earnings presentation. We continue to invest strategically for our future and remain confident in our ability to deliver organic revenue growth, expand margins, and increase free cash flow in the coming years. Following our discussion last quarter around our growth and technology accelerants, or GTAs, and core areas of focus, I want to provide three recent events that illustrate our leadership position as a technology integrator. This role positions us well to best meet evolving customer requirements, particularly in markets with rapidly advancing commercially available capabilities. The first example falls within our systems integration and delivery, or SID, capability within GTA. In April, the Joint Capabilities Office held flight tests in Arizona to assess counter UAS solutions across a variety of platforms and operating scenarios. SAIC performed extremely well and delivered a technology-agnostic, scalable, and modular solution capable of detecting, tracking, identifying, and defeating UAS threats in various environments. Our solution performed as well as it did for two reasons. First, we integrate best available technologies in the area of directed energy, radars, optics, and power management. And second, Valkyrie, which is our internally developed software solution and which allows us to be technology agnostic and deliver a single pane of glass single operator solution, both discriminators in this market. Our success at this event served as a catalyst for an encouraging rate of adoption in recent months with greater potential upside going forward. As you'll see on slide 7 of our earnings presentation, our recent progress in Counter UAS builds upon our strong legacy in this market. The second example sits in secure cloud within GTA. In fiscal year 22, SecureCloud accounted for roughly $1 billion in revenue for SAIC at accretive margins. Over the last 12 months, we have won new programs centered on cloud migration and cloud management with a total contract value of roughly $500 million. We have other large pursuits in our pipeline which lay the groundwork for sustained, profitable growth within SecureCloud in the coming years. A common thread we have seen in customer feedback has been the technical quality of our offering, which gives us confidence in the differentiation of our solution, known as CloudSend, which we illustrate on slide eight. According to Gartner, SAIC is the number one vendor for infrastructure implementation and managed services by revenue in the United States government. The third example relates to the recent successes we've had winning programs to help several customers implement their JADC2 strategy which we show on slide nine. While many of you on the call will appreciate the breadth of this effort across the Department of Defense, we are confident that our role as a technology integrator positions us as a leader in the market. Last quarter, we indicated that we had roughly $1.1 billion in award value under protest. One of those wins, known as AOC Falconer, with an award value of roughly $300 million was resolved in our favor. Through this key program, we will help the Air Force modernize and advance a premier command and control system using SAIC's expertise in JADC2 critical technologies, including cloud migration and modernization and big data integration. Importantly, we won this competitive pursuit in large part because of our superior technical solution fueled by CloudSend. We believe our success in these three areas provide great proof points of our strategy to leverage our legacy as a technology integrator to deliver higher value solutions in fast-growing markets while maintaining our capital light business model. I'll now turn the call over to Prabhu to discuss our financial results and improved outlook.