Science Applications International’s revenues increased by 5 percent to $2.1 billion in the second quarter, company officials announced Tuesday, down from a 10 percent growth in revenues the previous year.
SAIC head Ken Dahlberg attributed the company’s slowing revenue growth to tighter budgets among some of its biggest defense clients.
“We are pleased to report another solid quarter,” Dahlberg said in a statement.
“SAIC continues to compete well and provide excellent service for our government and commercial customers. Our revenue growth has slowed as many of our customers have experienced funding delays, but our view of the long-term market outlook remains strong given our focus on national priority missions.”
The San Diego-based federal contractor is the fourth-largest employer in the Washington region with nearly 16,000 workers.
Net income for the quarter increased 6 percent from $97 million in the second quarter of fiscal 2006 to $103 million in the second quarter of fiscal ’07 and diluted earnings per share for the quarter increased 11 percent from 54 cents to 60 cents.
The company’s locally based contract awards for the quarter included a deal to provide information technology services for the U.S. Department of Homeland Security’s Enterprise Acquisition Gateway for Leading Edge Solutions program and a $318 million, five-year contract with the U.S. Navy’s Space and Naval Warfare Systems center in Charleston, S.C.
The company was also on track to approve an initial public offering during the second quarter, but delayed the vote until Sept. 27 in order to give shareholders time to review new federal legislation that changes the rules on stock options under employee retirement plans.
