SAIC ends fiscal 2010 with $10.9B in revenue
Quarterly revenues were up 7 percent and 8 percent on an annual basis
- By David Hubler
- Mar 31, 2010
Science Applications International Corp. reported high single-digit revenue gains for its fourth quarter and fiscal year 2010, according to a company statement released after the close of markets March 30.
Revenues for the quarter were $2.68 billion, a 7 percent increase, up from $2.52 billion in the fourth quarter of fiscal 2009, the company announced.
Full-year revenues were $10.85 billion, up 8 percent from fiscal 2009. Fiscal 2010 ended Jan. 31.
Internal revenue growth, which includes year-over-year performance of acquisitions, represented 4 percentage points of the consolidated revenue growth for the quarter and 6 percentage points of the consolidated revenue growth for the fiscal year, SAIC said.
Operating income for the quarter was $209 million, or 7.8 percent of revenue, up slightly from $208 million, or 8.3 percent of revenue, in the fourth quarter of fiscal 2009.
SAIC said the year-over-year decline in operating margin was primarily attributable to an $8 million (28 percent) increase in bid and proposal expenses and a $6 million charge for the impairment of an intangible asset related to a fiscal year 2009 acquisition.
Full-year operating income was $867 million (8.0 percent of revenue), up 12 percent from $776 million (7.7 percent of revenue) in fiscal ’09.
“We are pleased to complete the fiscal year with improved operating margin, earnings per share and cash generation,” said Walt Havenstein, SAIC's chief executive officer, in the statement.
“We enter fiscal year 2011 with our portfolio of capabilities well aligned with national priorities, emphasizing areas such as intelligence, surveillance, and reconnaissance (ISR), cybersecurity, logistics, energy, and health technology to fuel our growth and shareholder value prospects,” Havenstein added.
According to the quarterly statement, key drivers of internal revenue growth for the quarter included military logistics programs, defense systems engineering and information technology, and military health care IT.
Income from continuing operations for the fourth quarter was $123 million, up 3 percent from $119 million in the fourth quarter of fiscal ’09. Full-year income from continuing operations was $500 million, up 12 percent from $447 million in fiscal ’09.
Cash flow provided by operations for fiscal 2010 was $620 million, reflecting 1.25 times income from continuing operations and up 6 percent from $583 million in fiscal 2009. The increase in 2010 was primarily due to increased net income from continuing operations, according to the SAIC statement.
During the fourth quarter of fiscal 2010, the company used $99 million to fund acquisitions, including the acquisition of Science, Engineering and Technology Associates Corp., a provider of smart sensor-based technologies and information solutions.
As of Jan. 31, 2010, the company had $861 million in cash and cash equivalents and $1.1 billion in long-term debt.
SAIC was able to meet or exceed its announced financial growth targets in fiscal 2010, said Mark Sopp, SAIC chief financial officer, in the statement.
“Our operating performance and cash generation allowed us to deploy cash towards acquisitions and share repurchases while maintaining a conservative balance sheet for future growth initiatives,” he said.
SAIC, of Falls Church, Va., ranks No. 7 on Washington Technology’s 2009 Top 100 list of the largest federal government prime contractors.