SAIC (NYSE: SAI) published some positive financial findings for the second quarter of FY11.
“We continue to balance our resource allocation among internal growth efforts, merger and acquisition activity, and share buybacks to promote long-term growth and increased shareholder value, ” said Walt Havenstein, SAIC chief executive officer. “I am pleased by the new business opportunities arising from stronger bookings year-to-date, our record high number of submitted proposals awaiting decision, and also the prospects of Reveal Imaging Technologies, Inc., which we acquired just after the end of the quarter.”
According to the firm, “revenues for the quarter were $2.79 billion, up 2 percent from $2.75 billion in the second quarter of fiscal year 2010. Internal revenue growth contracted 1 percentage point for the quarter. Operating income for the quarter was $273 million (9.8 percent of revenue), up 24 percent from $221 million (8.0 percent of revenue) in the second quarter of fiscal year 2010. Revenues and operating income for the quarter were favorably impacted by $56 million in revenues received in connection with royalty rights SAIC obtained in the transfer of certain patents to VirnetX, Inc. and the subsequent settlement of litigation against Microsoft Corporation relating to those patents. Income from continuing operations for the quarter was $158 million, up 26 percent from $125 million in the second quarter of fiscal year 2010.”
The firm also benefited from the end of a long-standing contention in South Africa.
“We are pleased with the successful conclusions reached in both the royalty matter and the long-standing dispute with Telkom South Africa, ” CFO Mark Sopp said. “We’ll use these cash proceeds to fund ongoing growth initiatives consistent with our long-term strategy.”