SAIC Announces Financial Results for Fiscal Year 2005
(SAN DIEGO) Apr 4, 2005- Science Applications International Corporation (SAIC) today announced financial results for the fiscal year ended January 31, 2005 (Fiscal 2005). View our Fiscal Year 2005 Income Statement and Balance Sheet (33k, PDF file*).
SAIC achieved revenues of $7.2 billion, reflecting a growth rate of 23 percent over our previous year's revenues of $5.8 billion, primarily due to an increase in our federal government contract awards.
“I am pleased with our performance; the professionalism and high caliber work that our men and women perform on a daily basis is measurably contributing to the security and defense of our nation, to cancer research, to innovative commercial IT solutions, and in countless other ways,” said Ken Dahlberg, SAIC chairman and chief executive officer.
On March 15, 2005, pursuant to a definitive stock purchase agreement entered into on November 17, 2004, SAIC completed the sale of the stock of its subsidiary, Telcordia Technologies, Inc. (Telcordia). Therefore, for Fiscal 2005, Telcordia has been classified as discontinued operations in the company's consolidated financial statements. In order to conform to the Fiscal 2005 presentation of discontinued operations, Telcordia's financial results have been reclassified from continuing operations for Fiscal 2004 and Fiscal 2003, and shown as discontinued operations for those years as well.
SAIC's operating income for Fiscal 2005 was $488 million, compared to $395 million for Fiscal 2004. The increase in operating income was driven primarily by our growth in revenues.
Non-operating items for Fiscal 2005 totaled $85 million of expense, compared to $31 million of expense in Fiscal 2004. The increase in non-operating expense in Fiscal 2005 was primarily attributable to fewer gains from the sale of investments, higher net interest expense (interest expense less interest income), and losses related to equity investments.
Income from continuing operations for Fiscal 2005 was $272 million, compared to $224 million in Fiscal 2004. This increase was primarily due to growth in operating income and a lower income tax provision resulting from a lower effective tax rate, offset by the increase in non-operating expenses. Net income for Fiscal 2005, including discontinued operations, was $409 million, compared to $351 million in Fiscal 2004.
Revenues for the fourth quarter of Fiscal 2005 were $1.9 billion, compared to $1.6 billion in the fourth quarter of Fiscal 2004. Operating income in the fourth quarter was $124 million in Fiscal 2005, compared to $93 million in Fiscal 2004. The fourth quarter income from continuing operations was $85 million in Fiscal 2005, compared to $35 million in Fiscal 2004. Net income for the fourth quarter was $144 million in Fiscal 2005, compared to $75 million in Fiscal 2004.
Income from Telcordia's discontinued operations was $133 million and $127 million for Fiscal 2005 and 2004, respectively, and was $59 million and $40 million for the fourth quarter of Fiscal 2005 and 2004, respectively.
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*Note: PDF documents are viewed using Acrobat® Reader™.
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, 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.
Telcordia Technologies was sold by SAIC in March 2005. Visit the Wireless Communications area of the site to learn more about these related services currently being offered by SAIC.
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