Federal awards spur SAIC 3Q growth
Revenue up 4 percent over same quarter in 2010
- By David Hubler
- Dec 10, 2010
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.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.