SAIC Announces Revenue and Earnings for the First Quarter of Fiscal 2006
(SAN DIEGO) Jun 6, 2005 - Science Applications International Corporation (SAIC) today announced that it achieved first quarter revenues of $1.8 billion, which is a growth rate of 8 percent over revenues of $1.7 billion for the first quarter of the previous year. Business momentum continues to be strong reflecting both government and commercial contract wins during SAIC's first quarter of Fiscal 2006, which ended April 30, 2005. View our Fiscal Year 2006 First Quarter Income Statement and Balance Sheet. (89k PDF file*)
“SAIC employees continue to deliver solid performance on our large and diverse contract base,” said Ken Dahlberg, SAIC chief executive officer and president. “We are especially mindful of the critical programs in which our men and women are applying advanced technologies to provide innovative solutions to aid the nation's fight against global terrorism.”
SAIC's operating income for the first quarter was $112 million, compared to $120 million during the same period last year. The operating income decline was driven primarily by an increased loss on our firm-fixed-price contract with the Greek Government, and higher expenditures for investment in our information technology and other infrastructure to support our growth.
Non-operating expenses decreased a net $9 million for the first quarter, primarily due to higher interest income.
Income from continuing operations for the first quarter was $55 million, compared to $67 million for the same period of the prior year, reflecting a higher income tax expense and effective tax rate.
Net income for the first quarter, including discontinued operations, was $585 million, compared to $89 million for the same period of the prior year. This included a $531 million after-tax gain from the sale of Telcordia Technologies, Inc. (Telcordia). As a result of selling this business, the operating results of Telcordia prior to the sale have been classified as discontinued operations in the company's condensed consolidated financial statements.
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From science to solutions, SAIC engineers and scientists solve complex technical problems in national security, homeland security, energy, the environment, space, telecommunications, health care, and logistics. With annual revenues of $7.2 billion, SAIC is the largest United States' employee-owned research and engineering company, with more than 42,000 employees at offices in more than 150 cities worldwide. More information about SAIC can be found at www.saic.com.
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, 2005, 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.
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