SI revenues grow in quarter

SI International boosted revenue and profit in its third quarter, recording double-digit organic growth and recent acquisitions.

The integrator’s revenue for the third quarter, which ended Sept. 24, was $101.8 million, an increase of 40 percent over the third quarter last year. Net income was $4.6 million, a 59 percent increase compared with last year’s $2.9 million. Diluted earnings per share increased 18 percent to $0.39 from $0.33 last year.

The company attributed its results to 10 percent organic growth and the acquisitions of Bridge Technology and Shenandoah Electronic Intelligence. Those companies were purchased in December 2004 and February, respectively.

Brad Antle, president and chief executive officer of SI, said the company continues to foresee strong government investment in SI’s primary focus areas: federal information technology modernization, defense transformation, homeland defense and mission-critical outsourcing.

Antle said during an earnings teleconference yesterday that some contract awards the company anticipated in its third quarter did not materialize. He said that there were fewer equipment purchases at the end of the government’s fiscal year compared with previous years. He also said the government’s shift in attention to responding to Hurricane Katrina was partly responsible for the situation.

At the end of the quarter, the company had about $2.5 billion of pending work in its pipeline, Antle said.

SI’s financial outlook calls for fourth quarter revenue of at least $100 million and full-year 2005 revenue of at least $381 million. Fourth quarter net income is expected to reach at least $4.7 million and at least $16.5 million for the year. The company projects fourth quarter diluted earnings per share of at least 40 cents and full-year diluted earnings per share of at least $1.42.