SAIC reports modest increases in fourth-quarter, fiscal 2011 revenues

Science Applications International Corp. saw its fourth-quarter revenues rise 3 percent over the prior year quarter, from $2.68 billion to $2.77 billion, while revenues for fiscal 2011 rose a modest 2 percent to $11.1 billion.

Internal revenue growth represented 1 percent of growth for the quarter, driven by increased activity on certain command, control and communications; intelligence and cybersecurity contracts, the company said in a statement released this week.

But internal growth for the fiscal year was flat, SAIC reported. The company's fiscal year ended Jan. 31.

Operating income for the quarter was $220 million, or 7.9 percent of revenue, up 5 percent from the $209 million, or 7.8 percent of revenue, in the prior quarter.

Compared to the previous full-year operating income, fiscal 2011 operating income rose 10 percent, from $867 million to $958 million, benefiting from a $56 million royalty payment and from strong program performance throughout the year, SAIC said.

Income from continuing operations for the quarter was $132 million, up 7 percent from $123 million in the prior year quarter. Full-year income from continuing operations was $569 million, up 14 percent from $500 million in fiscal 2010.

Income from those continuing operations benefited from a lower effective tax rate due to the December 2010 extension of the federal research and development tax credit, retroactive to Jan. 1, 2010, and the resolution of income tax uncertainties.

Net business bookings totaled $3.8 billion in the fourth quarter and $12.8 billion for the fiscal year, representing a book-to-bill ratio of 1.4 and 1.2 for the fourth quarter and the fiscal year, respectively.

The company received several large, competitive contract awards during the fourth quarter, including:

• A 10-year, $2.5 billion single award task order from the State Department for IT network infrastructure support.
• A $102 million, five-and-a-half-year Army logistics services support contract.
• A $62 million contract extension to continue work on the Unified NASA IT Services contract.
• A five-year, $40 million task order to provide systems engineering and life cycle integration for the Naval Surface Warfare Center Crane Division.
• A four-year, $28 million contract from the Navy Strategic Systems Programs Command to provide project management planning and systems integration.
• A four-and-one-third year, $20 million task order to assist the EPA develop GIS applications and enhance existing databases.

SAIC also was named to several multiple-award contracts that were not included in net bookings:

• A five-year Energy Department contract valued at $907 million for all awardees to provide environmental clean-up services.
• A seven-year Army Space and Missile Defense Command contract worth more than $343 million for SAIC to provide modeling, simulation and analysis services.
• A five-year, multiple-award indefinite-delivery, indefinite-quantity contract from the Army Research Laboratory with a $400 million ceiling value for all awardees to help the Special Operations Command leverage emerging R&D technologies.

The company's backlog of signed business orders at the end of fiscal 2011 was $17.3 billion, of which $5.5 billion was funded. Compared to the end of fiscal 2010, total backlog increased 11 percent while funded backlog increased 6 percent.

As of Jan. 31, the company had $1.37 billion in cash and cash equivalents and $1.85 billion in long-term debt.

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