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Revenue Bulks Up While Net Income Slims Down at SAIC

Science Applications International Corp., a San Diego engineering and research firm, reported net income for its 2007 fiscal year ended Jan. 31 of $391 million, down from $927 million in net profit for the 2006 fiscal year.

The company that went public in October said April 11 that its annual revenue grew 7 percent to $8.3 billion, making it the second largest local company, trailing only Sempra Energy.

It is also one of the largest in terms of employees, with more than 44,000, including 4,300 locally.

The company cited much higher income taxes for the past year, and lower interest income as the reasons for the reduced profits.

For the fourth quarter, SAIC reported net income of $84 million on revenue of $2.14 billion, compared with net income of $154 million on revenue of $1.96 billion in the prior year’s fourth quarter.

For the full year, SAIC incurred $234 million in income taxes, compared with $137 million for the 2006 fiscal year.

In terms of growing its business, SAIC was a big winner, reporting new business bookings in the fourth quarter of $2.7 billion, bringing the total for the year to $9.2 billion. Nearly all of SAIC’s business is derived from contracts with federal government agencies, including the Department of Defense and the Department of Homeland Security.

The firm is flush with cash, having a cash pile of $1.1 billion on its books as of the end of January, but it’s also carrying long-term debt of $1.2 billion.

The stock hasn’t been faring well of late, but rose 22 cents April 11 to close at $17.10 on the New York Stock Exchange. The company’s ticker symbol is SAI.

, Mike Allen

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