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SAIC’s Walt Havenstein, Mark Sopp Comment on Profit Growth

Walt Havenstein, SAIC

SAIC Inc.’s fiscal second-quarter profit climbed nearly 54 percent thanks to a refocus on areas such as cybersecurity, energy and health.

“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 SAIC, revenues for the quarter were $2.79 billion, up 2 percent from $2.75 billion in the second quarter of FY 2010. Internal revenue growth contracted 1 percentage point for the quarter. Operating income for the quarter was $273 million, up 24 percent from $221 million 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 received in the transfer of certain patents to VirnetX, Inc. and the settlement of litigation against Microsoft Corporation relating to those patents.

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.”

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