SAN DIEGO and MCLEAN, Va. , Sept. 3 /PRNewswire-FirstCall/ -- SAIC, Inc. (NYSE: SAI), a leading provider of research, engineering, and technology services and solutions, today announced financial results for the second quarter of fiscal year 2009, which ended July 31, 2008 .
"Our company continued its strong operating momentum in the second quarter of fiscal year 2009," said Ken Dahlberg , SAIC chairman and chief executive officer. "Internal revenue growth, contract execution, and cash collections were all excellent. Our employees' dedicated work is delivering excellent contract execution and critical support to our customers. Our growing labor base and improving business discipline gives us increasing confidence that we can achieve our financial goals for fiscal year 2009."
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, which include discontinued operations, were
Cash Generation and Capital Deployment
Cash flow from operations for the quarter was
During the quarter, the company used
Mark Sopp , SAIC chief financial officer commented, "Our core business continues to execute well, not only in winning and executing important work but also collecting and efficiently deploying our cash on acquisitions and share repurchases. Despite the non-recurring charges we took in the second quarter, we still expect to attain our fiscal year 2009 operating margin improvement goal of 20-30 basis points through strong labor growth and utilization coupled with higher border and port security product deliveries expected in the second half of the year."
New Business Awards
Net new business bookings totaled
Large, competitive definite delivery contracts received during the quarter include:
-- Program Executive Office for Enterprise Information Systems ( PEO EIS )
Support for the Army National Guard. SAIC received a five-year,
-- Naval Surface Warfare Center (NSWC) Support Services. Under a
-- U.S. Army Corps of Engineers Design-Build Projects. SAIC was awarded
contracts by the U.S. Army Corps of Engineers to design, engineer, and
construct an advanced metal finishing facility and a ground support equipment
facility at Robins Air Force Base (AFB), Georgia and a consolidated fuel,
overhaul, repair, and test facility at Tinker AFB, Oklahoma with a combined
contract value of more than
-- Defense Advanced Research Projects Agency (DARPA) Deep Green Program.
SAIC will support DARPA's Deep Green Program under a three-year,
-- Dubai Customs VACIS(R) IP6500 Purchase. Dubai Customs purchased five VACIS(R) IP6500 integrated cargo scanning systems for the port of Jebel Ali. The VACIS IP6500 combines high-penetration X-ray scanning, American National Standards Institute (ANSI)-compliant spectroscopic radiation detection and automated container identification in a self-contained portal requiring no additional shielding structure or exclusion zone. The system can handle more than 150 trucks per-hour, provide detailed cargo images through more than a foot of steel, and specifically identify hazardous nuclear materials, minimizing the need for costly secondary cargo inspections.
In addition, SAIC also won several indefinite delivery/indefinite quantity (IDIQ) contracts that are not included in the bookings total. The most notable IDIQ awards during the quarter were:
-- Defense Information Systems Agency (DISA) Encore II. SAIC will deliver
a broad range of information technology (IT) services and solutions to help
DISA transform the Department of Defense to a network-centric environment that
improves situational awareness by enhancing how the military services share
information. Under the multiple-award, ten-year contract with a total contract
ceiling value of
-- Chemical, Biological, Radiological, and Nuclear (CBRN) -- Installation
Protection Program (IPP). SAIC will support the CBRN-IPP through a five-year,
-- Command, Control, Communications, Computers, Cryptology, Intelligence,
Surveillance, and Reconnaissance (C5ISR) Program. SAIC received an eight-year,
The company's backlog of signed business orders at the end of the second
quarter of fiscal year 2009 was
Given the company's strong operating results in the first half of the year, recent contract wins, and share repurchases to date, the company expects to achieve all of its long-term financial goals in fiscal year 2009:
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 44,000 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
SAIC: From Science to Solutions(R)
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 September 3, 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.