New business pushes up SRA's third-quarter numbers

SRA International Inc. saw revenue grow almost 10 percent over the same quarter last year. What's behind their growth?

SRA International Inc. saw revenue rise in the third quarter of fiscal 2011 to $437.3 million, up 9.7 percent from the $398.7 million recorded in the corresponding quarter of 2010.

Operating income for the quarter, which ended March 31, was $38.8 million, for an operating margin of 8.9 percent. Income from continuing operations was $25.4 million, for a net margin of 5.8 percent. Operating cash flow from continuing operations for the quarter was $49.4 million, according to the May 10 announcement.

As of March 31, 2011, the company's backlog of signed business orders was $4.5 billion, and the funded portion of backlog was $769 million.

SRA’s new business in the third quarter has a potential value of $310 million if all option years are exercised.

SRA also was named to several multiple-award, indefinite-delivery, indefinite-quantity contracts in the third quarter, which are not included in the company's quarterly bookings or its calculation of backlog as of the quarter’s end, but “are expected to drive growth over time,” the company statement said.

Those IDIQ awards include:

SRA and its Platinum Solutions Inc. subsidiary have been named to the Justice Department’s Information Technology Support Services 4 (ITSS-4) multi-award contract, which has an estimated ceiling value of more than $1 billion.

SRA is one of the awardees on the Environmental Protection Agency’s $99.7 million Information Technology Solutions - Business Information Strategic Support (ITS-BISS) II contract.

SRA said its announced agreement to be acquired by an affiliate of Providence Equity Partners in an all-cash transaction is anticipated to close during the company’s first quarter of fiscal 2012 year, which begins July 1, 2011.

SRA also is taking steps to divest its subsidiary, Era Systems Corp., and its contract research organization, SRA Global Clinical Development LLC. The results of both the Era and GCD subsidiaries are presented in discontinued operations in SRA's financial statements for the third quarter of FY 2011.

In the third quarter, SRA incurred third-party acquisition and divestiture costs of approximately $4.2 million, according to the statement.

SRA International, of Fairfax, Va., ranks No. 30 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.