Science Applications International Corporation (NYSE:SAIC) Q4 2023 Earnings Call Transcript

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Prabu Natarajan: Tobey, the only other thing I would add to Nazzic’s commentary would be the underlying theme for every one of the changes we have made over the last 2 years accountability and more skin in the team, skinning the game for their leadership team. And so to me, that’s the permeating theme, and you have truly seen the team step up to the challenge and embrace having more risk inside the incentive comp system and continuing to drive better performance. We have made it uncomfortable to be comfortable if that’s a way to characterize it. So, I think that was likely not to change over the next couple of years. You will continue to drive internally a little more of a view that performance matters and we have to operate the business as owners of the business and what is the mindset that it takes to actually drive performance, and you will continue to see us pull the thread on it.

We are not going to comment specifically on the changes that are upcoming. We don’t want to get ahead of our Board here. But certainly, you will see that as an animating theme in the changes we are making.

Tobey Sommer: Thank you. And as a follow-up, could you discuss the space domain, and what you are seeing in opportunities, maybe rank order civil, military and intel as attractive markets?

Nazzic Keene: So, space continues to be an important part of our portfolio. As we sit here today, we are certainly seeing some increased focus in the military aspect of space with €“ I think with kind of the global unrest that exists. So, we continue to see opportunities there, but really not at the expense of civil or intel. In many cases, they are interwoven and the learnings and the solutions that we deliver in one aspect can be replicated in the other. So, we look at it from a balance perspective, working, obviously, closely with our customers on where the budget is going to go, but very fortunate to have a position in all three of those domains. And again, we do leverage the talent, we leverage the solutions where we can to drive differentiation as the ecosystem and the RFPs and the world stage demands it.

Operator: And your next question comes from the line of Louie DiPalma from William Blair. Your line is open.

Louie DiPalma: Nazzic, Prabu and Joe good morning and happy cherry blossom season to on the D.C. area.

Nazzic Keene: Good morning.

Louie DiPalma: Hello. Good morning. And for Nazzic, SAIC has multiple branded solutions. You have the Ascend Cloud Solutions and the 10-gene solution that is part of your Koverse data platform. Nazzic, you just mentioned that Koverse has been an accelerant. Have these branded solutions gain traction in the market and should we expect more partnerships like what you did with DataEQ for 10-gene?

Nazzic Keene: Yes. So, I am thrilled that you have noticed and you have recognized the brand, so that makes me happy. But the short answer is yes. Louie, we have €“ we have been very pleased with how we have been able to integrate those solutions in some new bids. And as we get a little more public, at a couple of recent ones, maybe you will hear a little bit more about that. But also being able to bring the solutions to existing customers, in many cases, looking for the opportunity to strengthen the position that we have and of all the position that we have, so very pleased with that. They are differentiators for us in the market. So, if you think about Koverse and we talk about the GTA area of cloud migration, cloud management.

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