Science Applications International Corp saw its profitability take a knock during its third fiscal quarter after it trimmed down its under-performing investment portfolio.
In the three months to October 31, the San Diego-based company’s net profit fell 34% to $92m on revenue that grew 2.6% to $1.59bn. SAIC said that the fall in profit was due to it incurring non-operating charges of $20m in the quarter relating to write-downs in its investment portfolio, compared to non-operating gains of $73m in the year-ago quarter.
During the quarter, SAIC liquidated its investments in security specialist VeriSign Inc and billing systems vendor Amdocs Ltd for gross proceeds of $571m. SAIC said that its investment portfolio is now worth $126m compared to $720m at the end of July.
SAIC, which is the world’s largest privately owned IT services provider, said that revenue from the government sector increased by 12% during the third quarter, which was partially offset by declines in sales to telecommunications and energy sector clients.