SRA Announces Financial Results for First Quarter of Fiscal Year 2010

FAIRFAX, Va., Nov. 4 /PRNewswire-FirstCall/ -- SRA International, Inc. (NYSE: SRX), a leading provider of technology and strategic consulting services and solutions to government organizations and commercial clients, today announced operating results for the first quarter of fiscal year (FY) 2010, which ended September 30, 2009.

Revenue for the quarter was $417.5 million, up 6.4% from $392.4 million in the September 2008 quarter. Organic revenue growth was 8.4%. Operating income for the quarter was $30.0 million, for an operating margin of 7.2%. Net income was $18.1 million, for a net margin of 4.3%. Diluted earnings per share (DEPS) for the quarter were $0.31, up $0.04 as compared to the September 2008 quarter.

SRA President and CEO Stan Sloane said, "We're pleased with our continued progress in business execution and cost management. Investments in business development have helped drive stronger organic growth, and our new contract award total is a company record."

Executive Vice President and CFO Rick Nadeau added, "Our first quarter financial results reflected solid operating performance in the core federal business. Our balance sheet continues to be strong with essentially zero net debt."

Contract Awards

SRA won new business in the first quarter with potential value of $933 million, if all option years are exercised, for a book to bill ratio of 2.2. As of September 30, 2009, the company's backlog of signed business orders was $4.5 billion, up 9% year-over-year, and the funded portion of backlog was $832 million.

Major highlights of competitive contract awards in the quarter include:

-- Federal Deposit Insurance Corporation (FDIC). SRA was awarded a recompete of our contract, under which we provide comprehensive enterprise-wide IT services for the FDIC. This represents the company's largest contract, providing about 6% of revenue. The value of the new award is estimated at $457.8 million over five years, if all options are exercised. -- Department of Homeland Security, Transportation Security Administration (TSA). The company won a task order under the EAGLE contract vehicle to monitor TSA's IT enterprise and assess IT security threats. The task order value is $53.5 million over five years, if all options are exercised, and will provide core primary and failover security operations center (SOC) services for up to five years.

-- Cancer Prevention and Research Institute of Texas (CPRIT). The company was awarded a contract to provide scientific peer review support and grants management services. This is a new client for SRA and the contract is worth $16.2 million over five years, if all options are exercised.

Forward Guidance

The company is updating revenue and earnings guidance for Fiscal Year 2010 originally provided on August 12, 2009. The table below represents management's current expectations about the company's future financial performance, based on information available at this time. The forward guidance in this table does not include any effect for acquisitions or divestitures that SRA might make in the future. The guidance assumes a FY 2010 diluted share count of 58.6 million.

Measure Fiscal Year (FY) Ending Change from ------- June 30, 2010 FY 2009 to 2010 ------------- --------------- Revenue $1.6 billion to $1.645 billion 4% to 7% ------- ------------------------------ ---------- Diluted earnings per share $1.15 to $1.25 14% to 24% ----------------------------------------------------------------------

Conference Call

SRA senior management will hold a conference call to discuss these operating results and forward guidance today at 5:00 PM Eastern. Interested parties may listen to the conference call by dialing 888-603-9639 (U.S./Canada) or 312-470-0140 (Other) with passcode SRX. The conference call will be Webcast simultaneously through a link on the SRA Web site (www.sra.com). A replay of the conference call will be available approximately two hours after the conclusion of the call on Nov. 4 through Nov. 18 by dialing 866-428-3808 (U.S./Canada) or 203-369-0909 (Other) and entering passcode 1978.

About SRA International, Inc.

SRA and its subsidiaries are dedicated to solving complex problems of global significance for government organizations serving the national security, civil government and global health markets. Founded in 1978, the company and its subsidiaries have expertise in such areas as air surveillance and air traffic management; contract research organization (CRO) services; cyber security; disaster response planning; enterprise resource planning; environmental strategies; IT systems, infrastructure and managed services; logistics; public health preparedness; public safety; strategic management consulting; systems engineering; and wireless integration.

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