SI profit grows in Q1

SI International saw a surge in revenue and net income for its first quarter that ended March 26.

The company's top line grew to $83.7 million, a 50 percent increase compared to the last year's first quarter, according to quarterly results released April 25. Net income was $3.2 million, a 37 percent boost over the year-earlier quarter. SI reported diluted quarterly earnings of 28 cents per share.

SI attributed its revenue growth to expansion in federal IT modernization, defense transformation, homeland defense, and mission-critical outsourcing. Recent acquisitions also played a role. The company cited its February 2005 acquisition of Shenandoah Electronic Intelligence and December 2004 purchase of Bridge Technology.

Shenandoah Electronic Intelligence is an outsourcing firm that counts the Homeland Security Department among its customers. Bridge Technology focuses on the intelligence sector.

Company management projected revenue of $88 million to $92 million in the second quarter and $380 million to $390 million for the full fiscal year, with organic growth of 10 percent to 15 percent. For the full year, executives expect SI net income of $15.1 million to $15.6 million and diluted earnings of $1.30 per share to $1.34 per share.

Second quarter earnings, the company said, will range between 28 cents and 30 cents per share. That would be less than the 33 cents per share analysts had been predicting for the second quarter, according to Zack's Investment Research.

The lower-than-expected second forecast sent SI shares tumbling today. The stock traded at $24.19 this afternoon, down more than 10 percent for the day.