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BUSINESS NEWS 21 FEB 05

14 Feb 05. SI International, Inc. (Nasdaq: SINT), announced strong results for its fourth quarter and fiscal year ended December 25, 2004. Revenue for the fourth quarter of fiscal year 2004 (FY04) increased 58 percent and net income increased by 28 percent as compared to the fourth quarter of the prior year. FY04 revenue increased 56 percent, while net income increased 47 percent as compared to FY03. The Company’s FY04 results were driven by organic growth in high-priority Federal government assignments in the key areas of: Federal IT modernization, defense transformation, homeland defense, and mission-critical outsourcing; and the acquisition of MATCOM in January 2004. Revenue for the fourth quarter of FY04 was $69.6m, an increase of 58 percent over fourth quarter FY03 revenue of $44.2m. Federal government contract revenue, which represents 98 percent of fourth quarter FY04 total revenue, grew by 63 percent to $67.9m from $41.6m for the fourth quarter of FY03. Revenue growth in the fourth quarter was primarily the result of new task orders and the expansion of work on current mission-critical information technology and network solutions contracts.
Net income for the fourth quarter of FY04 was $3.0m, an increase of 28 percent over fourth quarter FY03 net income of $2.3m. Diluted earnings per share for the fourth quarter of FY04 was $0.26. Income from operations for the fourth quarter of FY04 was $5.6m, an increase of 44 percent over operating income of $3.9 million reported a year earlier. Operating margin for the fourth quarter of FY04 was 8.1 percent. Backlog as of December 25, 2004 was $711 million, including $125m in funded backlog and $586m in unfunded backlog. Funded backlog is up 116 percent from the $58m reported at the year end of 2003.

18 Feb 05. Lockheed Martin Corp. has agreed to acquire Sytex Group Inc., a provider of information technology and technical support services to the U.S. Department of Defense and other federal agencies, for $462 million.
Lockheed, the Bethesda-based defense and aerospace giant, said the acquisition will strengthen its capabilities in IT and technical services and expand its range of federal IT customers. The company added that it expects the transaction to add immediately to per-share earnings. About 85 percent of Sytex’s revenue comes from defense and intelligence customers, with the remainder mainly from other U.S. government agencies. Sytex, which is based in Doylestown, Pa., reported 2004 revenue of about $425m, nearly 50 percent above its 2003 results, Lockheed said. The transaction is expected to close early this year. Sytex, which is privately held, employs more than 3,000 people worldwide. Lockheed Martin Information Technology, based in Seabrook, Md., will manage the Sytex business.

18 Feb 05. Northrop Grumman Corporation (NYSE: NOC – News) has announced a definitive agreement to acquire privately held Integic Corporation, a Chantilly, Va.-based information technology provider specializing in enterprise health and business process management solutions. Integic, which generated 2004 revenue of $161m, will become part of the Federal Enterprise Solutions business unit of Northrop Grumman’s Information Technology sector. The transaction is expected to be neutral in 2005 and accretive in 2006 to Northrop Grumman’s earnings per share from continuing operations. Terms of the transaction were not disclosed.

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