SAIC Announces Record Revenues for Fiscal Year 2004
SAN DIEGO, Apr 6, 2004 - SAIC today announced financial results for the fiscal year ended January 31, 2004 (Fiscal 2004).
SAIC achieved record revenues of $6.7 billion, reflecting a growth rate of 14 percent over our previous year's revenues of $5.9 billion. View our Fiscal Year 2004 Fourth Quarter Income Statement and Balance Sheet. (22k PDF file*) Revenues from our regulated segment, primarily federal government customers, increased 24 percent or $1 billion over the prior year, which reflects an increase in contract awards. Revenues from our non-regulated telecommunications segment customers decreased 18 percent or $192 million, as we continued to experience weakness in the commercial telecommunications market. In addition, our non-regulated other segment revenues decreased 7 percent or $30 million, largely due to continued lower contract spending on outsourcing initiatives by our commercial customers in the energy industry.
SAIC's operating income for Fiscal 2004 was $540 million compared to $499 million for Fiscal 2003. The increase in operating income was driven primarily by growth in revenues and operating income in our regulated segment, partially offset by lower revenues and operating income in our non-regulated telecommunications and other segments.
Non-operating items for Fiscal 2004 totaled $30 million of expense compared to $142 million of expense in Fiscal 2003. The improvement in non-operating items of $112 million was primarily caused by lower net losses in our investment portfolio of $140 million, offset by a $23 million increase in our net interest expense (interest expense after subtracting interest income), and a $5 million increase in other non-operating expense items.
Net income for Fiscal 2004 was $351 million, compared to $246 million in Fiscal 2003, and increased primarily due to our improvement in both operating income and non-operating expense items.
“We are very proud of our performance for Fiscal 2004, particularly as we celebrate the 35th anniversary of our company,” said Ken Dahlberg, SAIC president and chief executive officer. “SAIC's success over our 35 years is due to the extraordinary vision of Dr. Beyster, our chairman and founder, and the collective efforts of all the employee owners who have built a premier organization serving our customers with distinction.”
Revenues for the fourth quarter of Fiscal 2004 were $1.8 billion, compared to $1.5 billion in the fourth quarter of Fiscal 2003. Operating income in the fourth quarter was $126 million in Fiscal 2004, compared to $117 million in Fiscal 2003. Our growth in revenues and operating income in our regulated segment for the fourth quarter was partially offset by lower revenues and operating income from commercial customers in our non-regulated telecommunications and other segments. Operating income in the fourth quarter of Fiscal 2004 includes $8 million of restructuring charges, primarily in the regulated segment, related to the company's previously announced reorganization, as well as $10 million of facilities closure costs in the non-regulated telecommunications segment. The fourth quarter net income was $76 million in Fiscal 2004 compared to $80 million in Fiscal 2003, and decreased primarily due to the restructuring and facilities closure costs, as well as higher net interest expense.
“With our reorganization complete, a funded backlog of $4.2 billion, and cash and marketable securities of $2.4 billion, SAIC is well positioned to continue our record of outstanding customer service and successful growth in Fiscal 2005 and beyond,” said Dahlberg.
For Additional Information:
- SAIC Company Overview
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SAIC is the largest employee-owned research and engineering company in the United States, providing information technology, systems integration and eSolutions to commercial and government customers. From science to solutions, SAIC engineers and scientists work to solve complex technical problems in national and homeland security, energy, the environment, space, telecommunications, health care and logistics. 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, 2003, 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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