SRA Announces Financial Results for First Quarter of Fiscal Year 2008

FAIRFAX, Va., Nov. 7 /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...


FAIRFAX, Va., Nov. 7 /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 first quarter of fiscal year 2008, which ended September 30, 2007 .

Revenue for the quarter was $364.1 million, up 20% from $304.0 million in the September 2006 quarter. Operating income for the quarter was $29.9 million, for an operating margin of 8.2%. Net income was $18.5 million, for a net margin of 5.1%. Diluted earnings per share for the quarter were $0.31, up $0.05 year over year.

These first quarter financial results include the effect of the Constella Group acquisition as of August 9, 2007 . Constella contributed about $30 million of revenue and was accretive to earnings per share.

SRA President and CEO Stan Sloane said, "We're pleased to see solid returns on our marketing and sales investments. Despite the challenging market conditions, we've bolstered our backlog with a number of valuable wins, and we've continued to devote more resources to the next wave of bid opportunities."

CFO and Executive Vice President for Operations Stephen Hughes added, "One of the tenets of our strategic plan is to drive G&A cost efficiencies to increase our investment in business and employee development and to expand margins, and we were highly successful on those fronts in the quarter. Cash flows were also strong as we held Days Sales Outstanding to 69 days, equaling our best figure to date."

New Business Awards

The Company won new business in the first quarter with potential value of $829 million, if all options are exercised. As of September 30, 2007 , the Company's backlog of signed business orders was $4.0 billion, an increase of 10% year over year. Constella's contract backlog is included in that total.

SRA was also awarded several multiple-award, indefinite delivery, indefinite quantity (ID/IQ) contracts in the September quarter. ID/IQ wins are not included in the Company's quarterly bookings figure, but they provide a solid foundation for future growth. The largest ID/IQ that the Company won in the September quarter was Alliant, a General Services Administration contract vehicle with a $50 billion ceiling value over 10 years. The contract is currently under protest.

Forward Guidance

SRA is providing forward guidance for the second 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 this table does not include any effect for acquisitions SRA might make in the future.

Conference Call

SRA senior management will hold a conference call to discuss these operating results and forward guidance today at 5:00 PM Eastern. Interested parties may listen to the conference call by dialing (888) 287-9905 (U.S./Canada) or (706) 643-7540 (Other) with passcode 19411259. The conference call will be Webcast simultaneously through a link on the SRA Web site (www.sra.com). A replay of the conference call will be available approximately two hours after the conclusion of the call through November 21, 2007 by dialing (800) 642-1687 (U.S./Canada) or (706) 645-9291 (Other) and entering passcode 19411259.

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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