SAIC Announces Financial Results for Second Quarter Fiscal Year 2007
Revenues: Up 5 percent to $2.1 billion
Net Income: Up 6 percent to $103 million
Revenues: Up 5 percent to $2.1 billion
Revenues for the quarter increased 5 percent from $2.0 billion in the second quarter of fiscal year 2006 to $2.1 billion. Operating income for the quarter increased 9 percent from $144 million in the second quarter of fiscal year 2006 to $157 million. Operating income margin increased from 7.4 percent in the second quarter of fiscal year 2006 to 7.6 percent.
“We are pleased to report another solid quarter," said Ken Dahlberg, SAIC chairman and chief executive officer. "SAIC continues to compete well and provide excellent service for our government and commercial customers. Our revenue growth has slowed as many of our customers have experienced funding delays, but our view of the long-term market outlook remains strong given our focus on national priority missions. We have increased our investments in business development, and have a growing amount of both submitted proposals awaiting decision and new contract opportunities in the pipeline.”
Net income for the quarter increased 6 percent from $97 million in the second quarter of fiscal year 2006 to $103 million. Diluted earnings per share for the quarter increased 11 percent from $0.54 in the second quarter of fiscal year 2006 to $0.60. Most of the gain from the sale of Telcordia in March 2005 was recognized in the first quarter of fiscal year 2006, but the sale contributed $12 million towards net income and $0.07 towards diluted earnings per share for the second quarter of fiscal year 2006. The effect of the sale of Telcordia was reported in discontinued operations. Income from continuing operations and diluted earnings per share from continuing operations rose 21 percent and 28 percent, respectively, compared to the second quarter of fiscal year 2006. Diluted earnings per share growth was driven by higher net income and lower dilutive shares outstanding, resulting from share repurchases over the last 12 months.
SAIC is the largest employee-owned research and engineering company in the United States, with more than 43,000 employees in over 150 cities worldwide. SAIC engineers and scientists solve complex technical problems in national security, homeland security, energy, the environment, space, telecommunications, health care, and logistics. SAIC: FROM SCIENCE TO SOLUTIONS™
Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be very different from the results, performance or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended January 31, 2006, and such other filings that the Company makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
Investor Relations:
Stuart Davis
(703) 676-2283
stuart.davis@saic.com
External Communications:
Connie Custer, McLean
(703) 676-6533
custerc@saic.com
Ron Zollars, San Diego
(858) 826-7896
zollarsr@saic.com