Federal awards spur SAIC 3Q growth

Science Applications International Corp. reported a 4 percent gain in revenue for the third quarter of fiscal 2011, which brought its revenues to $2.87 billion from $2.77 billion in the third quarter of fiscal 2010.

Internal revenue growth, which includes the year-over-year performance of acquisitions, represented 2 percent of the consolidated revenue growth for the quarter, according to the company’s Dec. 8 announcement.

Internal revenue growth was driven by increased activity on certain intelligence and command, control and communications contracts, according to the announcement.

Operating income for the quarter was $258 million, or 9 percent of revenue, up 11 percent from $233 million in the third quarter of fiscal 2010.

SAIC said the improvement in operating income was the result of strong program performance, particularly on certain fixed-price contracts, and increased cost recovery on cost-reimbursable contracts.

Income from continuing operations for the quarter was $154 million, up 14 percent from $135 million in the third quarter of fiscal 2010.

Net business bookings totaled $3.1 billion in the third quarter, representing an increase of 4 percent from the corresponding quarter a year ago, contributing to a 14 percent increase on a year-to-date basis over the previous year.

Large, competitive definite-delivery federal contract awards received during the quarter included:

• A five-year, $321 million contract to provide a broad range of IT services to NASA.
• Two task orders totaling $233 million from the Homeland Security Department to support U.S. Citizenship and Immigration Services.
• A five-year, $45 million task order to provide engineering, scientific, logistics and data management services to the Naval Surface Warfare Center’s Spectrum Warfare Systems Department.
• A six-year, $42 million task order to provide hosting services to the Environmental Protection Agency's National Computer Center.
• A two-year, $45 million DHS task order to upgrade land mobile radio communications systems used by law enforcement for Customs and Border Protection.

During the quarter, the company used $218 million to buy Reveal Imaging Technologies, a provider of threat-detection products and services.

As of Oct. 31, SAIC had $644 million in cash and cash equivalents and $1.1 billion in long-term debt, according to the company report.

SAIC, of McLean, Va., ranks No. 5 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.