SRA Announces Financial Results for Fourth Quarter and Fiscal Year 2007

FAIRFAX, Va., Aug. 8 /PRNewswire-FirstCall/ -- SRA International, Inc. (NYSE: SRX), a leading provider of technology and strategic consulting services and solutions to federal government organizations, today announced operating results for the fourth...


FAIRFAX, Va., Aug. 8 /PRNewswire-FirstCall/ -- SRA International, Inc. (NYSE: SRX), a leading provider of technology and strategic consulting services and solutions to federal government organizations, today announced operating results for the fourth quarter and fiscal year 2007, which ended June 30, 2007 .

Revenue for the quarter increased 10% from $297.2 million in the June 2006 quarter to $326.2 million. Revenue for the year increased 8% from $1.179 billion in fiscal year 2006 to $1.269 billion.

Operating income for the quarter was $25.2 million, and full-year operating income was $92.8 million. Net income for the quarter was $16.7 million, and full-year net income was $63.4 million. Diluted earnings per share for the quarter were $0.28, and full-year diluted earnings per share were $1.09.

SRA President and Chief Executive Officer Stan Sloane stated, "Fiscal year 2007 ended on a high note with strong fourth quarter results and the key acquisition of Constella, which we expect to close soon. We're also beginning to see returns on our marketing and sales investments in the form of bid and proposal activity and new contract awards."

Chief Financial Officer Stephen Hughes added, "We're pleased with our June quarter progress in operating margins and earnings per share. Operating cash flow was outstanding throughout fiscal year 2007, totaling 1.3 times operating income. Days sales outstanding improved to 69 days in the fourth quarter, our best to date."

New Business Awards

The Company won new business with potential value of $255 million in the fourth quarter and $1.6 billion in the fiscal year, if all options are exercised. The Company's backlog of signed business orders stands at $3.4 billion.

Major highlights of competitive contract awards during the June quarter include:

SRA was also awarded prime contracts on several multiple-award ID/IQs in the June quarter. We do not include these in our current bookings or backlog, but they do provide significant opportunity for future growth.

Subsequent to the end of the June quarter, SRA has won several significant contracts, including one major multiple-award ID/IQ.

In addition, as of June 30, 2007 , the Company had approximately $1.6 billion of pending bids outstanding.

Changes to Board of Directors

SRA also announced today that President and CEO Sloane was appointed to the Company's Board of Directors, effective August 6 . Concurrently, in keeping with the Company's effort to maintain the independence of its Board, two inside directors have offered their resignations. William K. Brehm has been a director since 1978 and served 23 years as Chairman. Edward E. Legasey was named the first SRA vice president in 1978 and became a director in 2003; he was previously the Company's executive vice president and chief operating officer.

SRA Chairman Ernst Volgenau said, "Bill and Ted have been instrumental in building this Company based on a steadfast commitment to our ethic of honesty and service. I thank both for their years of dedicated service to SRA."

Forward Guidance

The Company is issuing initial guidance for the first quarter and fiscal year 2008. The table below represents management's current expectations about the Company's future financial performance, based on information available at this time.

The forward guidance in the table below does not include any effect for the Constella acquisition, nor for acquisitions SRA might make in the future. The Company intends to provide updated guidance to include the Constella acquisition before the end of the quarter.

About SRA International, Inc.

SRA is a leading provider of technology and strategic consulting services and solutions - including systems design, development, and integration; and outsourcing and managed services - to clients in national security, civil government, and health care and public health markets. The Company also delivers business solutions for contingency and disaster response planning, information assurance, business intelligence, environmental strategies, enterprise architecture, infrastructure management, and wireless integration.

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