State Department work boosts SI prospects

SI International this week upgraded its financial outlook for the quarter ending June 25, citing an uptick in a State Department contract.

The integrator’s financial results for the quarter are expected to exceed previous guidance, according to the company. SI International now forecasts second quarter revenue of $92 million to $94 million, compared with a range of $88 million to $92 million provided last month. The company also increased its net income guidance to $3.5 million to $3.7 million from $3.3 million to $3.5 million. Diluted earnings per share are forecast to range from 30 cents to 32 cents compared with 28 cents to 30 cents.

SI International said its higher financial guidance is chiefly due to “an unanticipated increase in demand” under its National Visa Center contract with the State Department. The integrator has been prime contractor on the National Visa Center deal since 1999. The center processes immigration visa applications.

The contract now has a ceiling of about $103 million, according to an SI spokesman. In March 2003, the contract’s ceiling was expanded to $60 million from $45 million. Later that year, the ceiling was increased to $88 million.

For the full year, the company now expects revenue of $385 million to $390 million, net income of $15.5 million or better, and diluted earnings per share of $1.32 or better.

The company issued its revised forecast on Thursday. By Friday afternoon, SI International shares had risen about 8.6 percent.