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
Operating income for the quarter was
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
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
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."
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.
FORTUNE(R) magazine has chosen SRA as one of the "100 Best Companies to Work For" for eight consecutive years. The Company's 5,200 employees serve clients from its headquarters in Fairfax, Virginia, and offices across the country. For additional information on SRA, please visit www.sra.com.
Any statements in this press release about future expectations, plans, and prospects for SRA, including statements about the estimated value of the contracts and work to be performed, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: our dependence on our contracts with federal government agencies, particularly within the U.S. Department of Defense, for substantially all of our revenue; our dependence on our GSA schedule contracts and our position as a prime contractor on government-wide acquisition contracts to grow our business; our ability to attract and retain skilled employees; any reductions in or reallocations of the U.S. defense budget or the budgets for civil government agencies; the market price of the company's stock prevailing from time to time; the nature of other investment opportunities presented to the company from time to time; the company's cash flows from operations; and other factors discussed in our latest quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 3, 2007 . In addition, the forward-looking statements included in this press release represent our views as of August 8, 2007 . We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to August 8, 2007 .
Organic revenue growth, as presented, measures revenue growth adjusted for the impact of acquisitions. The Company believes that this non-GAAP financial measure provides useful information because it allows investors to better assess the underlying growth rate of the Company's existing business. This non-GAAP financial measure should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
SOURCE SRA International, Inc.