ATLANTA, June 3 (Reuters) - SAIC, a provider of
technical services to the U.S. government, reported higher
first-quarter profit on stronger sales on Wednesday, sending its
shares higher in extended trading.
Net income rose to $116 million, or 28 cents a diluted share, for the first quarter ended April 30, compared with $103 million, or 24 cents a share, a year earlier. Profit from continuing operations came to 29 cents in the latest period.
Analysts expected 27 cents, according to Reuters Estimates.
The company said that although the U.S. Defense Department's plan to restructure the Future Combat Systems program 'provides some uncertainty,' it expects to boost per-share profit 11 percent to 18 percent in the current fiscal year, in keeping with its long-term financial goals.
SAIC said the Army's FCS modernization program represents about 3 percent of its annual revenue. It added it expects to have a 'significant role' under the restructured program.
Quarterly revenue rose 12 percent to $2.65 billion.
The company's shares were up 1.4 percent at $17.85 in extended trading on Wednesday after closing at $17.60.
(Reporting by Karen Jacobs, editing by Matthew Lewis) Keywords: SAIC/ (karen.jacobs@thomsonreuters.com; + 1 404 493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Net income rose to $116 million, or 28 cents a diluted share, for the first quarter ended April 30, compared with $103 million, or 24 cents a share, a year earlier. Profit from continuing operations came to 29 cents in the latest period.
Analysts expected 27 cents, according to Reuters Estimates.
The company said that although the U.S. Defense Department's plan to restructure the Future Combat Systems program 'provides some uncertainty,' it expects to boost per-share profit 11 percent to 18 percent in the current fiscal year, in keeping with its long-term financial goals.
SAIC said the Army's FCS modernization program represents about 3 percent of its annual revenue. It added it expects to have a 'significant role' under the restructured program.
Quarterly revenue rose 12 percent to $2.65 billion.
The company's shares were up 1.4 percent at $17.85 in extended trading on Wednesday after closing at $17.60.
(Reporting by Karen Jacobs, editing by Matthew Lewis) Keywords: SAIC/ (karen.jacobs@thomsonreuters.com; + 1 404 493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.