Gov't Business Helps Drive SAIC's First Quarter Revenue
- By Patience Wait
- Jun 19, 2001
Science Applications International Corp. reported June 18 its revenue for the first quarter of 2001 grew 16 percent over the same period last year, reaching $1.44 billion. The company attributed its results to continuing success in the government and commercial markets.
San Diego-based SAIC's operating income for the first quarter, which ended April 30, was $70 million, up 11 percent from $63 million in the first quarter of 2000.
Sales to federal agencies, both civilian and defense, account for about 50 percent of SAIC's revenue.
Among its wins in the first quarter was a Defense Department contract to continue providing sustainment services to all Military Health System medical facilities worldwide. The contract, worth more than $70 million, provides for site operations support, upgrades and maintenance for the Composite Health Care System, CHCS II and other clinical automated information systems.
Several state governments awarded contracts employing Telcordia Technologies, a wholly owned subsidiary of SAIC, to reduce the likelihood of frequent area code changes. The Telcordia Center for Number Pooling Administration serves as administrator for number pooling trials in Tennessee, Washington, Virginia, California and North Carolina, and as the interim administrator in Iowa.
The company also reported that consolidated net income was $9 million in the first quarter, compared to $1.075 billion in the same period last year. SAIC attributed the significant difference to $1.017 billion of after-tax gain realized last year after selling Network Solutions Inc. shares, and SAIC's investment in Solect Technology Group, adjusting the prior year net income to $58 million.
The largest component of the remaining $49 million year-to-year decrease was a non-operating, non-cash investment impairment charge of $43 million related to some investments in SAIC's $1.2 billion public investment portfolio.
SAIC describes itself as the country's largest employee-owned research and engineering firm, with annual revenue of $5.9 billion.
"SAIC's innovative organizational structure, which includes wholly owned subsidiaries, partially owned consolidated companies and equity investments, has created new avenues for the company's continuing growth and success," said J. Robert Beyster, chairman, chief executive officer and president. "Our growth and solid operating results during the first quarter, in a difficult economic environment, reflect our continued focus on helping our customers solve their most challenging technical problems consistent with our overall business strategy and our employee ownership philosophy."