SAIC Announces Financial Results for Second Quarter Fiscal Year 2009

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...


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 $3.3 billion in the second quarter of the fiscal year, representing a book-to-bill ratio of 1.3. 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:

-- Program Executive Office for Enterprise Information Systems ( PEO EIS ) Support for the Army National Guard. SAIC received a five-year, $454 million task order to provide life cycle maintenance of PEO EIS's Reserve Component Automation System (RCAS) and support the Distributive Training Technology Project (DTTP). SAIC services will include program management, software engineering and development, information assurance, enterprise architecture, data warehousing, user support and analysis, and implementation of emerging technology initiatives.

-- Naval Surface Warfare Center (NSWC) Support Services. Under a five-year, $243 million task order, SAIC will provide engineering and technical services in areas including modeling and simulation, acquisition, computing architecture, software programming, test and evaluation, and weapons security to the Joint Special Missions Focus Area at the NSWC in Crane, Indiana .

-- 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 $86 million. Work will meet Leadership in Energy and Environmental Design (LEED) certification standards.

-- Defense Advanced Research Projects Agency (DARPA) Deep Green Program. SAIC will support DARPA's Deep Green Program under a three-year, $42 million contract. SAIC will design, develop, and integrate a synergistic human/machine system to allow military commanders to evaluate and adjust plan outcomes through simulation.

-- 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 $12.225 billion, SAIC will provide enterprise policy and planning, network engineering, integrated solutions management, security engineering certification and accreditation, custom application development, and analytical support for implementing IT solutions.