Revenue during the quarter went down marginally by 1.94 percent to $1,114 million from $1,136 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 10.23 percent. Total expenses were 93.36 percent of quarterly revenues, down from 94.37 percent for the same period last year. This has led to an improvement of 101 basis points in operating margin to 6.64 percent.

Operating income for the quarter was $74 million, compared with $64 million in the previous year period.

However, the adjusted operating income for the quarter stood at $74 million compared to $65 million in the prior year period. At the same time, adjusted operating margin improved 92 basis points in the quarter to 6.64 percent from 5.72 percent in the last year period.

"SAIC's third quarter performance delivered strong results in profitability, cash flow generation and business development," said Tony Moraco, SAIC Chief Executive Officer. "With our highest book-to-bill since separation, our business development activities continue to gain momentum. Our continued investments position us well to meet the mission of our customers, execute our strategy and create shareholder value."

Operating cash flow improves significantly
Science Applications International Corporation has generated cash of $211 million from operating activities during the nine month period, up 78.81 percent or $93 million, when compared with the last year period.

The company has spent $9 million cash to meet investing activities during the nine month period as against cash outgo of $791 million in the last year period.

The company has spent $194 million cash to carry out financing activities during the nine month period as against cash inflow of $556 million in the last year period.

Cash and cash equivalents stood at $203 million as on Nov. 04, 2016, up 10.33 percent or $19 million from $184 million on Oct. 30, 2015.

Working capital increases
Science Applications International Corporation has recorded an increase in the working capital over the last year. It stood at $294 million as at Nov. 04, 2016, up 5.38 percent or $15 million from $279 million on Oct. 30, 2015. Current ratio was at 1.43 as on Nov. 04, 2016, up from 1.40 on Oct. 30, 2015.

Days sales outstanding went down to 52 days for the quarter compared with 54 days for the same period last year.

Debt comes down 
Science Applications International Corporation has recorded a decline in total debt over the last one year. It stood at $1,046 million as on Nov. 04, 2016, down 5.94 percent or $66 million from $1,112 million on Oct. 30, 2015. Total debt was 49.39 percent of total assets as on Nov. 04, 2016, compared with 51.10 percent on Oct. 30, 2015. Debt to equity ratio was at 2.93 as on Nov. 04, 2016, up from 2.84 as on Oct. 30, 2015. Interest coverage ratio improved to 4.93 for the quarter from 4.57 for the same period last year.