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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

 
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