SAIC Announces Financial Results for Fourth Quarter and Fiscal Year 2006
Revenue: $2.0 Billion for Fiscal Fourth Quarter, $7.8 Billion for Fiscal Year 2006
Diluted EPS: $0.87 for Fiscal Fourth Quarter, $5.15 for Fiscal Year 2006
Revenue: $2.0 Billion for Fiscal Fourth Quarter, $7.8 Billion for Fiscal Year 2006
Revenue for the quarter increased 5 percent from $1.9 billion in the fourth quarter of fiscal 2005 to $2.0 billion. Revenue for the year increased 8 percent from $7.2 billion in fiscal year 2005 to $7.8 billion. Operating income for the quarter increased 7 percent from $124 million in the fourth quarter of fiscal 2005 to $133 million. Operating income margin was 6.8 percent for the quarter. Full-year operating income increased 2 percent from $488 million in fiscal year 2005 to $497 million. Operating income margin was 6.4 percent for the full fiscal year. Operating income was hampered by the $83 million in contract loss recognized during the year on a firm-fixed-price contract with the Greek government.
Net income for the quarter increased 7 percent from $144 million in the fourth quarter of fiscal 2005 to $154 million. Net income for the year increased 127 percent from $409 million in fiscal year 2005 to $927 million. Diluted earnings per share for the quarter increased 12 percent from $0.78 in the fourth quarter of fiscal 2005 to $0.87. Diluted earnings per share for the year increased 136 percent from $2.18 in fiscal year 2005 to $5.15. The earnings for the fiscal year include $582 million of income from discontinued operations, driven primarily by the pre-tax gain of $871 million from the sale of Telcordia in March 2005. Considering only continuing operations, net income and diluted earnings per share rose 27 percent and 32 percent, respectively, compared to fiscal year 2005.
"The company completed another strong year, despite the challenges of the Greek Olympics contract," said Ken Dahlberg, SAIC chairman and chief executive officer. "Thanks to the dedication, discipline, and hard work of our 43,000 employees, we are entering fiscal year 2007 with solid fundamentals. We have taken steps to strengthen the management team and improve our operating efficiency. We see a healthy pipeline of new opportunities and look forward to accelerating growth in the coming year."
Chief Financial Officer Mark Sopp added, "In fiscal year 2006, our core business showed improved profitability and excellent cash flow. Looking forward, we are focused on internal growth initiatives, continued operating margin expansion, and strong cash flow management."
About SAIC
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 SOLUTION™
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 period 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.
CONTACTS:
Investor Relations:
Stuart Davis
(703) 676-2283
stuart.davis@saic.com
Media Relations:
Connie Custer (McLean, VA)
(703) 676-6533
constance.a.custer@saic.com
Ron Zollars (San Diego, CA)
(858) 826-7896
zollarsr@saic.com
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