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SI International's Profit Jumps 17 Percent

Wednesday, November 1, 2006

Government contractor SI International Inc. of Reston said its third-quarter profit rose 17 percent compared with the corresponding period a year earlier due to its acquisition of Zen Technology Inc. and growth in federal government contracts.

Profit climbed to $5.4 million (41 cents a share) from $4.6 million (39 cents).

Revenue rose 18 percent, to $119.9 million, on new work orders, the expansion of work on current information technology and network contracts, and the Zen Technology acquisition.

Analysts polled by Thomson Financial had expected earnings of 40 cents per share on revenue of $119.7 million.

The company said it benefited from growth in federal government work in information technology modernization, defense transformation, homeland defense and mission-critical outsourcing.

The company maintained its earnings guidance of 43 cents to 47 cents per share for the fourth quarter and $1.54 to $1.58 per share for the full year. But it lowered its revenue forecast to between $465 million and $471 million from the previously forecast range of $470 million to $476 million. The company's full-year earnings guidance includes a stock option expense.

Shares closed at $33.16, up 21 cents.

· United Therapeutics Corp. of Silver Spring said its third-quarter profit fell 46 percent on stock-option costs and a hefty income tax expense, as revenue grew 22 percent.

The biotechnology company earned $8.5 million (34 cents a share), down from $15.8 million (61 cents). Excluding $4.3 million in stock option expenses and a tax expense of $5.6 million, the company earned 74 cents a share. Analysts polled by Thomson Financial had expected earnings of 53 cents a share, excluding the expenses.

Revenue jumped 22 percent, to $40.4 million, due to higher sales of its high-blood-pressure drug Remodulin.

Shares closed at $59.85, down 85 cents.

· Corporate Office Properties Trust of Columbia said it had funds from operations of $25.1 million (46 cents a share) in the third quarter, compared with $24.1 million (47 cents).

The real estate investment trust, which focuses on owning suburban office properties in the Washington area, had a profit of $20.6 million (33 cents), up from $10.6 million (18 cents). Revenue increased 2 percent, to $92.9 million. Shares closed at $47.79, down $1.28.

· MCG Capital Corp. of Arlington earned $22.1 million (42 cents a share) in the third quarter, a 32 percent increase from its profit of $16.7 million (34 cents) in the year-ago quarter. Income from dividends and interest on investments rose 32 percent, to $34.3 million. Advisory fees and other income more than doubled, to $6.5 million.

The company added $109.6 million in investments in the quarter, bringing its portfolio to $1.21 billion. However, the yield on the company's average loan portfolio fell to 12.7 percent from 13 percent at the end of the second quarter, as the narrow gap between short and long-term interest rates continued to squeeze lenders.

Shares closed at $17.92, up 59 cents.

· Under Armour Inc. of Baltimore, which makes athletic apparel, earned $16 million (32 cents a share) in its third quarter, a 90 percent surge from $8.4 million (20 cents). The recent quarter included a benefit of 5 cents per share from state tax credits.

Sales jumped 48 percent, to $127.7 million, beating Wall Street estimates of $119 million, and the company raised its full-year profit and sales targets. Shares closed at $46.35, down 39 cents.

· Alliance Bankshares Corp. of Chantilly had a profit of $1.4 million (23 cents a share) in the third quarter, up from $1.2 million (20 cents). Net interest income was $5.4 million, up from $4.9 million. Shares closed at $16.49, down 34 cents.

· Highland Hospitality Corp. of McLean, a real estate investment trust that owns hotels, reported funds from operations of $11.1 million (19 cents a share) for the third quarter, up from $7.1 million (18 cents).

Profit was $2.3 million (1 cent), up from $812,000 (2 cents). The decreased per-share earnings for the recent quarter reflect the profit available to common shareholders after $1.6 million in preferred stock dividends. Revenue increased 77 percent, to $99.7 million.

· Gladstone Commercial Corp. of McLean, a real estate investment trust, reported funds from operations of $2.3 million (29 cents a share) for the third quarter, up from $2 million (26 cents).

Profit was $1.8 million (16 cents), up from $867,000 (11 cents). Operating revenue increased 73 percent, to $6.7 million.

· American Capital Strategies Ltd. , a Bethesda investment company, had a profit of $131.6 million (92 cents a share) in the third quarter, up from $94.1 million (90 cents). Operating income totaled $230.8 million, up 55 percent from $148.8 million.

Compiled from staff and Associated Press reports.

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