Walt Havenstein on SAIC’s Latest Fiscal Figures

SAIC (NYSE: SAI) rolled for the first quarter of fiscal year 2011, ending April 30.

“We won several significant contracts during the quarter in national priority areas such as cybersecurity and logistics, ” said Walt Havenstein, SAIC chief executive officer. “These awards reflect the strong alignment between our strategic capabilities and our customers’ missions. We improved our book-to-bill ratio considerably to 1.2, and our outlook for fiscal year 2011 remains unchanged.”

SAIC reported the following:

“Revenues for the quarter were $2.69 billion, up 1 percent from $2.65 billion in the first quarter of fiscal year 2010. Internal revenue growth contracted 1 percentage point for the quarter. Internal revenue growth was adversely affected by fewer new contract starts from lower recent bookings, and lower demand for materials on a number of programs.

Operating income for the quarter was $207 million (7.7 percent of revenue), up 1 percent from $204 million (7.7 percent of revenue) in the first quarter of fiscal year 2010. Operating income for the quarter included a $3 million severance charge in connection with the expiration of the Scottish Power IT outsourcing contract. Income from continuing operations for the quarter was $125 million, up 7 percent from $117 million in the first quarter of fiscal year 2010. The growth in income from continuing operations was primarily driven by a lower effective tax rate as a result of the resolution of income tax uncertainties.

Diluted earnings per share (EPS) from continuing operations for the quarter were $0.32, up 10 percent from $0.29 in the first quarter of fiscal year 2010, driven by the increase in income from continuing operations and a lower share count compared to the prior year quarter. The diluted share count for the quarter was 378 million, down 5 percent from 397 million in the first quarter of fiscal year 2010, due primarily to share repurchases made over the last five quarters.”

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