SRA: Revenue up in first quarter of 2007

SRA International announced its operating results for the first quarter of fiscal 2007, which ended Sept. 30.

SRA said revenue for the quarter was $304 million, up 8 percent from $280.7 million in the first quarter of fiscal 2005. Operating income for the quarter was $22.8 million, slightly better than the September 2005 quarter. Net income for the quarter was $15.1 million, up 5 percent from $14.4 million in the third quarter of 2005. Diluted earnings per share for the quarter were $0.26, up 4 percent from $0.25 in the corresponding fiscal 2005 quarter.

SRA said it completed Oct. 25 its acquisition of RABA Technologies, a privately owned provider of high-end technical services to the intelligence community. Also last month, Mantas, a commercial company SRA spun off in 2001, was sold to I-flex Solutions, an information technology services firm. As a minority shareholder in Mantas, SRA will have a pre-tax gain on the sale of more than $3.6 million in the December 2006 quarter, the company said in its earnings announcement.

“We’re pleased that we exceeded our revenue forecast and met our [earnings per share] guidance for the September quarter,” Renny DiPentima, SRA president and chief executive officer, said in the announcement. “Our record new business wins and our large volume of bid proposals still outstanding reflect strong returns on our investments in business development.”

He added that SRA is looking forward to working with RABA Technologies to build the company’s presence in the intelligence community.

“We delivered solid operating results, and we continued to improve our cash management,” chief financial officer Stephen Hughes added. “Days sales outstanding improved from 81 days to 76 days, and cash flows from operations were about three times net income.”