Perspecta Inc. (NYSE:PRSP) Q3 2020 Earnings Conference Call - Final Transcript

Feb 12, 2020 • 05:00 pm ET


Perspecta Inc. (NYSE:PRSP) Q3 2020 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Perspecta Third Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Michael Pici, Vice President of Investor Relations. Please go ahead.

Michael Pici

Thank you and welcome everyone to our third quarter fiscal year 2020 earnings conference call. Presenting today are Mac Curtis, our CEO; and John Kavanaugh, our CFO. This call is being webcast on the Investor Relations portion of our website at, where we also have posted the earnings release and financial presentation slides, which supplements our comments today.

Turning to Slide 2 of the presentation. Before we begin, please note that during this call, we will make several forward-looking statements that are subject to the known and unknown risks and uncertainties that could cause actual results to differ materially from anticipated results. For a full discussion of these risks and uncertainties, please refer to our SEC filings, including our latest Form 10-K. In addition, these statements represent our views as of today and subsequent events may cause our views to change. Though, we may elect to update the forward-looking statements, we specifically disclaim any obligation to do so.

Finally, as shown on Slide 3, we'll discuss some non-GAAP financial measures that we believe provide useful information for investors. The slide presentation for today's call includes reconciliations to the most closely comparable GAAP measures.

At this time, it's my pleasure to turn the call over to Mac, who will begin on Slide 4.

Mac Curtis

Thank you, Mike and thank you all for joining us this afternoon. Before I go further, I want to introduce Mike Pici, who joined us recently as the company's Vice President of Investor Relations. Mike brings over 20 years of relevant experience to his new role, and we're excited to have him on the team. For today's call, first, we will address the recent NGEN announcement and then discuss our third quarter results. Obviously, we're disappointed with the outcome of the Navy's recent announcement regarding the Service Management, Integration, and Transport or SMIT portion of the NGEN program.

I want to begin by providing an update on the contract schedule. First, we are currently under a contract extension it takes us through December of 2020, which consist of a six-month extension through September and three one-month options. We will go through the debrief process currently scheduled for February 24 to obtain insight into the award decision and we'll determine our next steps after that. Second, in accordance with the performance work statement in the new SMIT contract, there is a requirement for a nine-month transition out once the contract starts. This is a setback to our plans. No question. As a company, we will weather the storm.

Operationally, we are performing very well. We will discuss another solid quarter's results in a minute. In fact, it is the seventh quarter in a row of strong performance. We've basically