Earnings report: SAIC, McLean
SAIC reported a slight increase in revenues during the third quarter of its 2013 fiscal year, but the defense contractor warned of increased pressure based on tightened government spending. The company is splitting into two so that it can be more competitive and avoid conflicts of interest. In the short term, the company is cutting 700 employees to reduce costs.
Revenues: $2.87 billion, up 3 percent from $2.79 billion in the third quarter of last year
Profit: $110 million, up from a loss of $89 million in the third quarter of fiscal year 2012
Earnings per share: 33 cents per diluted share, compared with a loss of 28 cents per diluted share last year
Special items: Special items during the previous quarter included a $232 million loss relating to the CityTime work-force management contract with the City of New York.
THE COMPANY’S TAKE: John Jumper, chairmand and CEO: “This quarter we are reporting modest year-over-year revenue growth and solid new business bookings even in the currently cautious government market. This reflects our more aggressive pursuit of new business opportunities and the strong commitment of our 40,000 employees to the highest level of customer service, even as we undertake significant changes within the company. Our outlook continues to be cautious as the government approaches critical fiscal decisions. Under any scenario, we expect government spending to be constrained, especially in the defense market, and we are preparing for the budget pressures.”
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