MCLEAN, Va. (AP) — Security and communications technology company SAIC said Wednesday that its fiscal second-quarter net income dropped 61 percent, hurt by costs related to its planned separation into two companies and charges tied to underperforming programs and contracts.
The company's results missed Wall Street's expectations, and it cut its fiscal 2014 outlook.
SAIC Inc. plans to split into two separate companies later this year. One, Science Applications International Corp., will handle information technology and other services. The other, Leidos Holdings, Inc., will focus on national security, engineering and other work.
For the period ended Aug. 2, SAIC earned $42 million, or 12 cents per share. That compares with $108 million, or 32 cents per share, a year earlier.
Earnings from continuing operations were 13 cents per share for the latest quarter.
Analysts, on average, predicted earnings of 22 cents per share, according to a FactSet survey.
SAIC said its quarterly performance was also weighed down by the effects of the automatic federal budget cuts.
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