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26 Nov 10. Northrop Grumman delays shipbuilding operations decision to next year. Northrop Grumman expects to reach a decision on the future of its shipbuilding interests during the first quarter of next year, the group has told Jane’s. Northrop spokesman Randy Belote told Jane’s on 23 November that the group’s “exploration and analysis of strategic alternatives for its shipbuilding business continues”, adding: “It is estimated that that analysis will be completed and decision reached in the first quarter of next year.” Whether or not the group eventually decides to sell on the assets, Northrop is taking the steps required to spin off its shipbuilding business. In a regulatory filing made by the group on 24 November, Northrop told shareholders that its spin-off company, New Ships, into which Northrop put its shipbuilding assets on 14 October, would be called Huntington Ingalls Industries and be headquartered in Newport News, Virginia. (Source: Jane’s, JDW)

08 Dec 10. SAIC, Inc. (NYSE:SAI – News) today announced financial results for the third quarter of fiscal year 2011, which ended October 31, 2010.
“Our employees continue to deliver effectively in support of mission critical customer programs. Strong program execution and improved returns on fixed-price contracts contributed to operating profit and earnings per share growth over the same period last year,” said Walt Havenstein, SAIC chief executive officer.
Summary Operating Results
Revenues for the quarter were $2.87bn, up 4 percent from $2.77bn in the third quarter of fiscal year 2010. Internal revenue growth, which includes year-over-year performance of acquisitions, represented 2 percent of the consolidated revenue growth for the quarter. Internal revenue growth was driven by increased activity on certain intelligence and command, control and communications contracts. Operating income for the quarter was $258m (9.0 percent of revenue), up 11 percent from $233m (8.4 percent of revenue) in the third quarter of fiscal year 2010. The improvement in operating income was the result of strong program performance, particularly on certain fixed-price contracts, and increased cost recovery on cost reimbursable contracts. Income from continuing operations for the quarter was $154m, up 14 percent from $135m in the third quarter of fiscal year 2010. Diluted earnings per share (EPS) from continuing operations for the quarter were $0.41, up 21 percent from $0.34 in the third quarter of fiscal year 2010, driven by the increase in income from continuing operations and a lower share count compared to the prior year quarter. The diluted share count for the quarter was 360m, down 7 percent from 388m in the third quarter of fiscal year 2010, due primarily to share repurchases in prior quarters. Diluted earnings per share, which include discontinued operations, were $0.46 for the quarter, up from $0.34 in the third quarter of fiscal year 2010. Discontinued operations for the quarter benefited from the resolution of certain contingencies related to the sale of the company’s former Telcordia subsidiary.
Cash Generation and Capital Deployment
Cash flow provided by operations for the quarter was $315m, compared to
$250m in the third quarter of fiscal year 2010. Days sales outstanding were 69 days in the quarter compared to 70 days in the third quarter of fiscal year 2010. During the quarter, the company used $218 m to fund the acquisition of Reveal Imaging Technologies, Inc., a leading threat detection products and services company serving customers in the transportation safety industry. As of October 31, 2010, the company had $644m in cash and cash equivalents and $1.1bn in long-term debt.
New Business Awards
Net business bookings totalled $3.1bn in the third quarter, representing an increase of 4 percent from the third quarter of the prior year and contributing to a 14 percent increase on a year-to-date basis over the prior year. The book-to-bill ratio was 1.1 for the

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