SAIC Announces Financial Results for Third Quarter Fiscal Year 2008

SAN DIEGO and MCLEAN, Va., Dec. 10 /PRNewswire-FirstCall/ -- SAIC, Inc. (NYSE: SAI), a leading provider of research, engineering, and technology services and solutions, today announced financial results for the third quarter of fiscal year 2008...


During the quarter, the company used a total of $98 million to repurchase 4.7 million shares under the stock repurchase program and 0.9 million shares in privately negotiated transactions or other recurring repurchases from employees in settlement of withholding taxes associated with stock option exercises and vesting events.

New Business Awards

Net new business bookings totaled $3.9 billion in the third quarter of fiscal year 2008, representing a book-to-bill ratio of 1.6. Net bookings are calculated as the current period ending backlog plus the current period's revenue less prior period ending backlog and backlog obtained in acquisitions. No bookings value is assigned unless the company has received a signed contract for a priced statement of work.

Large, competitive definite delivery contracts received during the quarter include:

In addition, SAIC also won several indefinite-delivery/indefinite-quantity (IDIQ) contracts that are not included in the bookings total. Notable IDIQ awards during the quarter include:

The company's backlog of signed business orders at the end of the third quarter of fiscal year 2008 was $15.8 billion, of which $5.4 billion was funded. The negotiated unfunded backlog of $10.4 billion represents the estimated amount to be earned in the future from firm orders for which funding has not been appropriated or otherwise authorized and unexercised priced contract options. Negotiated backlog does not include any estimate of future expected task orders to be awarded under IDIQ or other master agreement contract vehicles.

Forward Guidance

The company initiated guidance for fiscal year 2008 on December 12, 2006 , and subsequently reaffirmed this guidance, most recently on October 9, 2007 . The company currently expects the following for fiscal 2008:

Over the coming years, the company expects to continue the progress shown in fiscal year 2008, including continued focus on improving internal growth, making strategic acquisitions, improving profitability, generating strong cash flows, and effectively deploying cash for total shareholder return over the long term. The company's long-term outlook remains consistent with the financial goals articulated as part of the initial public offering:

Unless there are significant diversions of government funding as a result of unanticipated delays to supplemental war appropriations, the company's expectations for fiscal year 2009 are consistent with these goals.

About SAIC

SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With approximately 44,000 employees in more than 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers' mission-critical functions.

SAIC: FROM SCIENCE TO SOLUTIONS(TM)

Forward-Looking Statements