SAN DIEGO and MCLEAN, Va. , Dec. 9 /PRNewswire-FirstCall/ -- SAIC, Inc. (NYSE: SAI), a scientific, engineering, and technology applications company, today announced financial results for the third quarter of fiscal year 2009, which ended October 31, 2008 .
"We continue to deliver strong contract performance and financial results consistent with our plan," said Ken Dahlberg , SAIC chairman and chief executive officer. "Our 45,000 employees are dedicated to solving our customers' hardest problems, which creates a powerful discriminator in the markets we serve. Our success in capturing larger and more demanding programs and recruiting and retaining the skilled workforce to execute them provide good visibility into fiscal year 2010."
During the quarter, the company decided to sell a small products business that was previously part of Applied Marine Technology, Inc. (AMTI), which was acquired in December 2006 . AMTI's primary business, including services and solutions for the special warfare community and ground-based signals intelligence, continues to be core to the company's strategic intent. The results from the AMTI products business are reflected in discontinued operations.
Summary Operating Results
Revenues for the quarter were
Operating income for the quarter was
Income from continuing operations for the quarter was
Diluted earnings per share from continuing operations for the quarter were
Cash Generation and Capital Deployment
Cash flows from operations for the quarter were
During the quarter, the company used
Mark Sopp , SAIC chief financial officer commented, "I am pleased that the hard work of the entire SAIC team is paying off in both strong current financial results and the forward indicators of new bookings and net hires. We are on track to meet all of our key financial metrics for the year, including revenue, operating margin, earnings per share, and cash flows from operations. We continue to use our cash prudently, through selected acquisitions and share repurchases. We are currently investing our cash conservatively, with correspondingly lower returns, in light of the uncertainty in the financial markets."
New Business Awards
Net new business bookings totaled
Large, competitive definite delivery contract awards received during the quarter include:
-- U.S. Army Human Resources Command (HRC) Information Technology (IT)
Support. Under a five-year,
-- National Media Exploitation Center (NMEC) Support. SAIC was awarded a
-- U.S. Central Command (USCENTCOM) Information Technology (IT) Support.
Under a five-year,
-- Naval Sea Systems Command (NAVSEA) Enterprise Resource Planning (ERP).
SAIC has been awarded a five-year,
-- National Cancer Institute (NCI) Operation. SAIC's wholly-owned
subsidiary SAIC-Frederick, Inc. received a follow-on contract from the NCI to
provide operations and technical support to NCI's Federally Funded Research
and Development Center in Frederick, Md. , which strives to develop new
technologies and translate scientific discoveries into novel agents for the
prevention, diagnosis, and treatment of cancer and AIDS. The contract has a
10-year period of performance and an estimated value of
In addition, SAIC also won several indefinite delivery/indefinite quantity (IDIQ) contracts that are not included in net bookings. The most notable IDIQ awards during the quarter were:
-- Future Flexible Acquisition and Sustainment Tool (F2AST) Program. SAIC
was awarded a contract by the U.S. Air Force Warner Robins Air Logistics
Center to support the F2AST program. The multiple-award contract has a
seven-year period of performance and a total value for all awardees of
-- Office of Federal Student Aid (FSA) Software Development. SAIC was
awarded a contract by the U.S. Department of Education, Office of FSA to
provide software development services. The multiple-award contract has a
ten-year period of performance and a ceiling value of
The company's backlog of signed business orders at the end of third
quarter of fiscal year 2009 was
As part of its October 2006 initial public offering, the company articulated its long-term, average annual financial goals:
Given its operating results through the third quarter of the year, recent contract wins, and share repurchases to date, the company expects to meet all of its long-term financial goals in fiscal year 2009.
The company's business development and contract execution performance in fiscal year 2009, coupled with a healthy U.S. defense budget through October 2009 , provide good visibility for fiscal year 2010. Unless there are significant, unanticipated disruptions in government funding, the company expects its revenue and operating margin performance to be consistent with its long-term goals in fiscal year 2010. The company is investing its cash balance primarily in U.S. Treasury securities, which will significantly reduce interest income and, as a result, make the EPS growth goal more difficult to achieve. However, the company intends to offset the shortfall by deploying its balance sheet and free cash flow generation on acquisitions and share repurchases if they can be made at attractive prices.
SAIC is a FORTUNE 500(R) scientific, engineering, and technology
applications company that uses its deep domain knowledge to solve problems of
vital importance to the nation and the world, in national security, energy and
the environment, critical infrastructure, and health. The company's
approximately 45,000 employees serve customers in the Department of Defense,
the intelligence community, the U.S. Department of Homeland Security, other
U.S. Government civil agencies and selected commercial markets. SAIC had
annual revenues of
Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of future revenues, earnings, backlog, outstanding shares and cash flows. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Actual performance and results may differ materially from the guidance and other forward-looking statements made in this release depending on a variety of factors, including: changes in the U.S. Government defense budget or budgetary priorities or delays in the U.S. budget process; changes in U.S. Government procurement rules and regulations; our compliance with various U.S. Government and other government procurement rules and regulations; the outcome of U.S. Government audits of our company; our ability to win contracts with the U.S. Government and others; our ability to attract, train and retain skilled employees; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to obtain required security clearances for our employees; our ability to accurately estimate costs associated with our firm-fixed-price and other contracts; resolution of legal and other disputes with our customers and others; our ability to successfully acquire and integrate businesses; our ability to manage risks associated with our international business; our ability to compete with others in the markets in which we operate; and our ability to execute our business plan effectively and to overcome these and other known and unknown risks that we face. These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the SEC, including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest annual report on Forms 10-K and 10-K/A and quarterly report on Forms 10-Q and 10-Q/A, which may be viewed or obtained through the Investor Relations section of our Web site at www.saic.com.
All information in this release is as of December 9, 2008 . SAIC expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in the company's expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
SOURCE SAIC, Inc.