Robert H. Smith School of Business
The Motley Fool

Market Foolery Featured Podcasts

  • MarketFoolery 10.23.2014
    Caterpillar and Tractor Supply rise on the combination of good earnings and low expectations.  On the flip side, Under Armour’s expectations could hardly be higher.  We analyze those stocks and dip into the Fool Mailbag.
  • MarketFoolery 10.22.2014
    Yahoo’s 3rd-quarter profits surprise Wall Street.  Plus we discuss the possibility of a conspiracy in the oil industry, the investing acumen of journalist Bob Woodard, and why Coca-Cola’s bottlers are a great leading indicator for Coca-Cola’s stock.
  • Market Foolery 10.21.2014
    Apple, McDonald’s, Coca-Cola and Chipotle report their latest results.  We analyze their earnings and offer stock ideas to Warren Buffett.
Capital Business
Posted at 05:28 PM ET, 03/20/2012

SAIC records $308 million loss related to CityTime settlement

McLean-based contractor Science Applications International Corp. said Tuesday that it recorded a $308 million loss for the fourth quarter
SAIC’s headquarters in McLean. (Paul J. Richards - AFP/Getty Images)
related to settling a troubled contract with New York City.

The company reported a loss of $161 million ( 49 cents per share) in the three-month period ended Jan. 31, compared with a profit of $131 million (35 cents) in the same period a year earlier. Quarterly revenue dropped to about $2.5 billion.

The company last week announced that it had reached a settlement over CityTime, an employment timekeeping program it managed for New York City. Under the deal with the U.S. Attorney’s Office for the Southern District of New York, SAIC pays $500.4 million in restitution and penalties. The company also waives an additional $40 million that the city has not paid, and the attorney’s office will appoint an independent monitor for three years.

John P. Jumper, the company’s new chief executive, said in a call with investors Tuesday that the settlement has renewed the company’s enthusiasm as it implements a new strategy. SAIC will be pushing for more commercial business, particularly in the energy and health information technology fields, he said.

Last quarter, SAIC had already recorded a charge of $232 million in anticipated losses related to CityTime.

Tuesday, SAIC reported its profit for the 2012 fiscal year dropped to $59 million (18 cents per share), a 90 percent drop from $619 million ($1.64) the previous year.

Revenue declined to $10.59 billion, down from $10.92 billion the year prior.

By  |  05:28 PM ET, 03/20/2012

 
Read what others are saying
     

    © 2011 The Washington Post Company