SAIC to Support the U.S. Navy’s Hypersonics Advanced Concepts and Strategic Missions Programs
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Insights
The $63 million contract awarded to Science Applications International Corp. (SAIC) by the U.S. Navy represents a significant investment in hypersonic technology, which is a critical area of modern military capability. Hypersonics refers to flight at speeds greater than five times the speed of sound (Mach 5+), presenting unique challenges and opportunities in terms of aerodynamics, propulsion and materials science. The strategic importance of hypersonic systems lies in their ability to deliver strikes rapidly and penetrate dense air defense systems.
From a defense industry perspective, this contract signifies the U.S. Navy's commitment to maintaining technological superiority in the face of evolving global threats. The focus on full lifecycle research and development, including Hardware-in-the-Loop (HWIL) and Software-in-the-Loop (SWIL) simulations, indicates a comprehensive approach to advancing these capabilities. HWIL and SWIL are methodologies used to simulate and test complex systems and components in a virtual environment, which can significantly reduce development costs and timelines.
The investment in hypersonics by the Navy is likely to have a ripple effect across the defense sector, potentially leading to increased demand for specialized materials, manufacturing techniques and expertise in systems integration. This could benefit suppliers and subcontractors in the defense supply chain, as well as potentially drive innovation in related sectors.
The announcement of SAIC's $63 million contract with the U.S. Navy is a material event that may influence the company's financial performance and could be of interest to investors and market analysts. Contracts of this magnitude can contribute significantly to a company's revenue stream and provide a level of predictability to future earnings, especially when they involve long-term research and development commitments.
SAIC's role in enhancing hypersonic advanced concepts and strategic missions could lead to further contracts and extensions if they successfully meet the Navy’s objectives. The development of unique test capabilities and the focus on rapid engineering principles suggest that SAIC is positioned to be at the forefront of innovation in this space, which might enhance its competitive edge and market share within the defense contracting industry.
Investors should monitor SAIC's execution on this contract, as successful integration and delivery could lead to improved financial metrics and possibly affect the stock's valuation. However, the high-risk nature of research and development in advanced defense technologies also carries the potential for cost overruns and delays, which could impact the projected financial benefits of the contract.
The contract awarded to SAIC by the U.S. Navy underscores the growing market for hypersonic technology and the associated research and development efforts. As geopolitical tensions rise and nations seek to bolster their defense capabilities, the demand for advanced military technologies such as hypersonics is expected to grow. This trend is likely to influence the defense industry's market dynamics, with an increased emphasis on innovation and rapid deployment of advanced systems.
SAIC's involvement in developing and enhancing hypersonic technologies positions the company as a key player in this niche market. The contract may also serve as an indicator of the U.S. government's procurement priorities and could set a precedent for future defense spending. Companies that are able to align with these priorities and demonstrate technological prowess in areas like hypersonics are likely to benefit from increased investment and opportunities.
It is important for market researchers to track the development of hypersonic technologies and the performance of key contractors like SAIC to accurately forecast market trends and identify potential growth areas within the defense sector.
Company will provide research, development, test and evaluation for Strategic Systems Programs and the Naval Surface Warfare Center Crane
“Every day, SAIC provides expertise in systems integration and delivery solutions in support of the
Under the new contract, SAIC will enhance hypersonics advanced concepts and strategic missions focused on next-generation systems, subsystems, components, features and technologies to include Hardware-in-the-Loop (HWIL) and Software-in-the-Loop (SWIL) simulations, manufacturing techniques and other strategic mission areas.
SAIC’s continuing support to NSWC Crane will also include developing unique test capabilities, assessing and addressing technology gaps, recommending requirements and solutions for hypersonics advanced concepts and strategic mission areas, identifying critical enabling technologies and assessing a technology’s suitability for specific applications including flight qualification. SAIC will assist SSP and NSWC Crane in driving quick-reaction analysis and rapid engineering principals across Department of Defense hypersonic advanced concepts and strategic mission initiatives to enable continued technological superiority.
Additional support by SAIC will include developing improvements to leading-edge technologies, including new technical approaches and opportunities for technology transfer and integration, as well as inserting, enhancing, modernizing and sustaining state of the art hypersonics advanced concepts and strategic mission technologies to keep pace with continually emerging and evolving threats.
For more information on SAIC’s work in systems integration and delivery, visit https://www.saic.com/what-we-do/mission-support/systems-integration-and-delivery
About SAIC
SAIC® is a premier Fortune 500® technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective and efficient solutions that are critical to achieving our customers' missions.
We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. SAIC is an Equal Opportunity Employer, fostering a culture of diversity, equity and inclusion, which is core to our values and important to attract and retain exceptional talent. Headquartered in
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240103820080/en/
Thais Hanson
703.676.8215 | thais.c.hanson@saic.com
Source: Science Applications International Corp.
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