From saic at vision.moundalexis.com Sun Oct 1 17:56:15 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 1 Oct 2006 13:56:15 -0400 (EDT) Subject: [saic] In the Post... Message-ID: <20061001135419.G26528-100000@vision.moundalexis.com> 1 October 2006 ; Washington Post http://www.washingtonpost.com/wp-dyn/content/article/2006/09/30/AR2006093000135.html --- Page F02 Ken C. Dahlberg, chief executive of employee-owned government contractor SAIC, a major Northern Virginia employer, which after repeated delays won shareholder approval to issue public shares under a scheme that will retain employee control. From saic at vision.moundalexis.com Mon Oct 2 10:50:29 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 2 Oct 2006 06:50:29 -0400 (EDT) Subject: [saic] NLOS Cannon firing platform unveiled Message-ID: <20061002065019.R26528-100000@vision.moundalexis.com> 2 October 2006 ; Gizmag NLOS Cannon firing platform unveiled http://www.gizmag.com/go/6254/ --- September 30, 2006 The world got its first look at the Future Combat Systems (FCS) [1] Non-Line-of-Sight (NLOS) Cannon [2] Firing Platform last week. The NLOS Cannon is the lead Manned Ground Vehicle (MGV) of the U.S. Army's foremost modernization program - an integrated family of air systems and both manned and unmanned ground systems connected by a robust network. The 155-mm Firing Platform is the first step toward development of NLOS Cannon prototypes scheduled to begin testing in 2008. The NLOS Cannon Firing Platform features a 38-caliber length, fully automated 155-mm howitzer, and will soon be shipped to Army test facilities, where it will begin qualification of its ultra-lightweight cannon and breech. The Firing Platform will undergo testing through 2008. Test data from these tests will support obtaining a safety release, which will allow soldiers to begin testing the NLOS Cannon prototypes. Images of NLOS Cannon, with no captions. [3] [4] -- Ed. Together with the Army and LSI, BAE Systems and General Dynamics Land Systems are developing the NLOS-C as the first vehicle in the FCS program's fleet of eight variants of manned ground vehicles. These vehicles will maximize the use of common chassis, parts and sub-systems. They will feature a two-person crew station, lightweight band track, and a hybrid-electric propulsion system that maximizes power and fuel efficiency. Overall, FCS manned ground vehicles will require 10-30% less fuel and far fewer mechanics than current manned ground vehicles. The eight MGV variants, including the NLOS-C, are among the 18 networked systems that together will constitute FCS, the U.S. Army's foremost modernization program. Currently in the System Development and Demonstration phase, FCS is being accelerated to meet near-term needs of the current force while equipping future warfighters with advanced capabilities to meet emerging threats. FCS will improve the strategic deployability and operational maneuver capability of ground combat formations without sacrificing lethality or survivability. "Operations in Iraq and Afghanistan have proved the critical importance of cannon artillery in defeating both conventional and insurgent-type threats," said Jim Unterseher, BAE Systems director of Army Programs. The NLOS Cannon was developed by BAE Systems for the Boeing/Science Applications International Corporation (SAIC) led FCS Program. "The push-button firepower of the NLOS Cannon will give soldiers an even more lethal, flexible and responsive fire support option for ensuring mission success in a range of combat scenarios." The Firing Platform's howitzer is integrated with a fully automated ammunition handling system. The platform, made of a combination of high-strength steel and aluminum, incorporates a cannon assembly that is 1,200 pounds lighter than the M777 cannon used on the NLOS Cannon Concept Technology Demonstrator previously developed and tested by BAE Systems. The cannon assembly is integrated onto a lightweight surrogate chassis that provides performance similar to the full prototype vehicle chassis. The NLOS Cannon prototypes will incorporate lightweight band track, a two person crew station and a hybrid-electric propulsion system that maximizes power and fuel efficiency. Much of the advanced technology being developed for the NLOS Cannon is being incorporated into the design and development of other vehicles in the MGV family, such as the NLOS Mortar. The NLOS Mortar is being designed by BAE Systems to have an estimated 80 percent commonality with the NLOS Cannon chassis and mission equipment to reduce maintenance and logistics. A NLOS Mortar Firing Platform is expected to be delivered for testing and qualification in spring 2007. --- [1] http://www.army.mil/fcs/ [2] http://www.gizmag.com/go/4304/ [3] http://www.gizmag.com/watermark.php?p=6254_21006103611.jpg [4] http://www.gizmag.com/watermark.php?p=6254_21006103712.jpg From saic at vision.moundalexis.com Tue Oct 3 02:19:14 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 2 Oct 2006 22:19:14 -0400 (EDT) Subject: [saic] SAIC IPO weighs in at $1 bln Message-ID: <20061002221854.K26528-100000@vision.moundalexis.com> 2 October 2006 ; MarketWatch SAIC IPO weighs in at $1 bln http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B677DDB20%2D09F2%2D47D2%2DB58A%2DCE88A22BF45A%7D&dist=newsfinder&siteid=google --- NEW YORK (MarketWatch) -- SAIC Inc. on Monday weighed in with a proposed $1 billion initial public offering, as the San Diego firm set a $13-$15 price range and a deal size of 75 million shares. The provider of scientific and engineering services to the U.S. Department of Homeland Security and other government branches will raise $1.05 billion based on the midpoint of the proposed IPO price range. SAIC plans to trade on the New York Stock Exchange under the symbol "SAI". Morgan Stanley (MS) and Bear Stearns (BSC) are lead underwriters of the deal. From saic at vision.moundalexis.com Tue Oct 3 02:20:30 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 2 Oct 2006 22:20:30 -0400 (EDT) Subject: [saic] Field Report: SAIC, San Diego Message-ID: <20061002222021.M26528-100000@vision.moundalexis.com> 2 October 2006 ; Intelligent Enterprise Field Report: SAIC, San Diego http://www.intelligententerprise.com/channels/bi/showArticle.jhtml?articleID=192700966 --- Streamlined navigation keeps users on site. By Jeff Morris Poor site navigation is an almost universal problem preventing companies from collecting effective leads and sales from their Web sites. SAIC, the nation's largest employee-owned research and engineering company, recently realized its Web sites were underperforming. SAIC is comprised of many business units, each of which sells a different product or service. The Web development team had to figure out how to help visitors quickly navigate from the home page to their appropriate area of interest and, once there, submit a request for information. Each business unit relies on these inbound leads to generate sales. Using WebSideStory's HBX on-demand Web analytics, SAIC can see exactly how visitors are navigating, what content they view, and which pages they exit on. This intelligence and "measure-respond-measure" analytics process has let SAIC clear roadblocks and dramatically streamline site navigation. By using HBX's Form Abandonment capability to see exactly where visitors are bailing out of lead generation forms, SAIC reduced the number of required fields in these forms from six to three and saw an immediate 10 percent increase in conversions. Overall, SAIC has seen a threefold increase in the number of online leads it generates. From saic at vision.moundalexis.com Tue Oct 3 02:25:29 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 2 Oct 2006 22:25:29 -0400 (EDT) Subject: [saic] SAIC sets terms for $1 billion IPO Message-ID: <20061002222514.K26528-100000@vision.moundalexis.com> 2 October 2006 ; MarketWatch SAIC sets terms for $1 billion IPO http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7BB1992688-546D-47FF-9F3D-76BD552750E9%7D&keyword= --- IPO REPORT By Steve Gelsi NEW YORK (MarketWatch) -- SAIC Inc. said Monday it plans to offer 75 million shares at $13 to $15 each to raise about $1 billion in its initial public offering. Self-described at the largest employee-owned research and engineering company in the U.S. with more than 43,000 employees, SAIC will join a rare class of billion-dollar-plus IPOs, including MasterCard (MA) and Warner Chilcott (WCRX). SAIC will have a total of 401 million shares outstanding when it goes public, with a market capitalization of about $5.6 billion. SAIC, which stands for Science Applications International Corp., provides services to the U.S. Department of Homeland Security and other government agencies. SAIC plans to trade on the New York Stock Exchange under the symbol SAI. Morgan Stanley (MS) and Bear Stearns (BSC) are lead underwriters of the deal. The company plans to pay a special dividend of a combined $2 billion to its stockholders, including its directors and officers. The dividend won't be paid on shares sold in the IPO. For the 2005, SAIC reported revenue of $7.8 billion and net income of $927 million, compared with revenue of $7.2 billion and net income of $409 million a year earlier. Kenneth C. Dahlberg, 61, has been chief executive officer of the company since 2003, after working at Raytheon (RTN) and General Dynamics (GD). The company traces its roots to 1969, when physicist J. Robert Beyster founded the firm after working at Los Alamos National Laboratory in the 1950s. "Beyster was not interested in attracting those looking to 'get rich quick'," SAIC said on its Web site. "As the company was first set up, it was decided that the employees would own it, and that the ownership would be based on a person's contribution to the company. As Beyster began interviewing applicants, he made a point of explaining this unique ownership arrangement." On Friday, SAIC shareholders approved a plan to make SAIC a wholly owned subsidiary of a newly formed company, SAIC Inc. SAIC's stockholders also approved the proposed a 2006 equity incentive plan and a 2006 employee stock purchase plan. From saic at vision.moundalexis.com Tue Oct 3 02:27:11 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 2 Oct 2006 22:27:11 -0400 (EDT) Subject: [saic] Contracts for 10/2/2006 Message-ID: <20061002222704.I26528-100000@vision.moundalexis.com> 2 October 2006 ; United States Department of Defense Contracts for 10/2/2006 http://www.defenselink.mil/Contracts/Contract.aspx?ContractID=3351 --- CONTRACTS from the United States Department of Defense No. 978-06 FOR RELEASE AT October 02, 2006 Media Contact: (703) 697-5131/697-5132 Public/Industry(703) 428-0711 CONTRACTS [...] DEFENSE LOGISTICS AGENCY Science Applications International Corporation, Reston, Va., is being awarded a maximum $15,240,365 fixed price with economic price adjustment contract to perform environmental document updates at DoD fuel terminals storing Defense Energy Support Center (DESC) capitalized product world wide for a five-year period for DESC. Proposals were Web-solicited and 7 responded. Contract funds will not expire at the end of the current fiscal year. Date of performance completion is September 30, 2011. Contracting activity is the Defense Energy Support Center (DESC), Fort Belvoir, Va. (SP0600-06-D-5608). [...] From saic at vision.moundalexis.com Tue Oct 3 11:04:43 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 3 Oct 2006 07:04:43 -0400 (EDT) Subject: [saic] SAIC Prepares $1 Billion Offering Message-ID: <20061003070435.O26528-100000@vision.moundalexis.com> 3 October 2006 ; Washington Post SAIC Prepares $1 Billion Offering http://www.washingtonpost.com/wp-dyn/content/article/2006/10/02/AR2006100201263.html --- Workers Would Retain Control of San Diego Contractor By Griff Witte Washington Post Staff Writer Page D03 San Diego-based government contractor Science Applications International Corp. has set a price range for its initial public offering of between $13 and $15, which would give the company proceeds of about $1 billion, according to documents filed yesterday with the Securities and Exchange Commission. The company, which has been publicly contemplating an IPO for the past year, plans to sell 75 million shares to the public. The offering is expected this fall. SAIC has been employee-owned since its founding in 1969, and its 43,000 employees would retain control of the firm after it goes public. The company has estimated that after the IPO, current shareholders will own 81 percent of the firm's capital stock and hold 98 percent of shareholder voting power because each current share will be worth 10 votes. Current stockholders will also share in a special dividend totaling between $620 million and $1.4 billion. The path to a public offering was cleared Wednesday, when shareholders approved a corporate reorganization that was a crucial part of chief executive Ken C. Dahlberg's plan to take the company public. SAIC, which would trade on the New York Stock Exchange under the symbol SAI, had $7.8 billion in revenue last year, with 89 percent of that total coming from contracts with the U.S. government. In its filing with the SEC, the company said it expected government spending to grow in areas where it specializes "as a result of homeland security and intelligence needs arising from the global war on terror, the ongoing transformation of the U.S. military and the increased reliance on outsourcing by the U.S. government." The company also warned, however, that the government has recently begun using strategies that make the contracting industry more competitive, which could hurt the company's bottom line. "The U.S. government has increasingly relied on certain types of contracts that are subject to a competitive bidding process," according to SAIC's filing. "Due to this competitive pressure, we may be unable to sustain our revenue growth and profitability." From saic at vision.moundalexis.com Tue Oct 3 11:06:13 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 3 Oct 2006 07:06:13 -0400 (EDT) Subject: [saic] SAIC Introduces VACIS(R) P 7500 Cargo Inspection System Message-ID: <20061003070548.W26528-100000@vision.moundalexis.com> 3 October 2006 ; Yahoo (PR Newswire) SAIC Introduces VACIS(R) P 7500 Cargo Inspection System http://biz.yahoo.com/prnews/061002/dcm008.html?.v=62 --- SAN DIEGO and MCLEAN, Va., Oct. 2 /PRNewswire/ -- Science Applications International Corporation (SAIC) today announced the launch of its VACIS P 7500 Inspection System -- a compact, high-penetration and high-energy inspection portal that is designed to scan up to 150 cargo containers per hour. SAIC is a leading provider of efficient, effective and compact low-dose cargo inspection systems with more than 300 systems installed worldwide. The VACIS P 7500 Inspection System provides a small footprint with high throughput, utilizing SAIC's patented drive-through technology. The imaging system is ideally suited for high-volume ports and transportation facilities that require high-throughput inspections of dense cargo. The system comprises a low-dose compact 7.5MeV accelerator working in conjunction with a high- efficiency detector array to produce high-resolution and high-contrast images. This low-radiation dose produced by the source requires less shielding and a smaller radiation restricted area than conventional X-ray units. Excellent image quality is achieved at individual scan speeds of up to 5 mph and throughput rates of 150 units per hour. "We are pleased to offer the next generation of our line of VACIS Inspection System products," said Alex Preston, SAIC senior vice president and general manager of the Security and Transportation Technology Business Unit. "The VACIS P 7500 represents a breakthrough in performance for advanced security screening applications. With minimum impact to commercial operations, the VACIS P 7500 offers a unique combination of safety, high throughput, and high penetration in a small footprint." From saic at vision.moundalexis.com Wed Oct 4 03:19:36 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 3 Oct 2006 23:19:36 -0400 (EDT) Subject: [saic] SAIC IPO to debut next week Message-ID: <20061003231709.T26528-100000@vision.moundalexis.com> 3 October 2006 ; Blogging Stocks SAIC IPO to debut next week http://www.bloggingstocks.com/2006/10/03/saic-ipo-to-debut-next-week/ --- SAIC has made the necessary approvals and set terms for its IPO. It will trade under the ticker 'SAI' on the New York Stock Exchange and it has completed its voting and share consolidations to come public via an IPO. It set terms at 75 million shares with a $13.00 to $15.00 range. It has now listed Morgan Stanley and Bear Stearns as the joint book-runners; co-managers are listed as Citigroup, Wachovia, Banc of America, Cowen & Co, Jefferies, and Stifel Nicklaus. SAIC has been in the IPO hopper for longer than anyone can recall, and it filed to raise [1] up to $1.73 billion in proceeds via an IPO last year. SAIC is a defense and government contractor and is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. SAIC has not been without controversy regarding contract appropriations, but in the government contract arena that seems status quo. The company has 43,100 full-time employees and part-time employees. The U.S. Government is by far its largest customer with revenues as a percentage of all revenues as follows: 89% for 2006; 86% for 2005, and 85% for 2004. SAIC has a consolidated negotiated backlog listed on its balance sheet of just over $15 billion. Its fiscal 2006 (Jan 31 year-end) showed $7.792 billion in revenues with net income listed as $792 million. Its fiscal 2005 revenues were listed as $7.187 billion and net income of $409 million. SAIC listed total assets for January 31, 2006 as $5.655 billion, with $2.91billion in working capital, and it listed stockholders equity as $2.907 billion. Long-term debt was listed as $1.192 billion. We think this is one name that many key holders will need to own in their investment portfolio as it is possible that the company will get a faster track into many stock indexes compared to other names. The IPO should debut by the end of next week according to investment calendars. --- [1] http://www.saic.com/saic-ipo/ From saic at vision.moundalexis.com Wed Oct 4 03:22:04 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 3 Oct 2006 23:22:04 -0400 (EDT) Subject: [saic] SAIC Sets Terms for $1.1B IPO Message-ID: <20061003232156.O26528-100000@vision.moundalexis.com> 3 October 2006 ; Houston Chronicle SAIC Sets Terms for $1.1B IPO http://www.chron.com/disp/story.mpl/ap/fn/4232422.html --- By ED WELSCH Dow Jones Newswires WASHINGTON -- Science Applications International Corp. set the terms of its $1.1 billion initial public offering Monday so that voting control will be kept firmly in employee hands. The San Diego-based aerospace and defense contractor has been employee-owned since its inception in 1969. SAIC's estimated 43,100 employees will own 326 million shares of preferred stock after the offering, or about 81 percent of the total capital stock. Each preferred share has 10 votes, compared with one for each common share to be offered in the IPO, further diluting the voting power of future public shareholders. That means when the company goes public through the sale of 75 million common shares in an offering expected this month, the public will control only 2.3 percent of the voting rights at the company. Employee loyalty gained through its stock ownership plan has given SAIC an edge in recruiting and retaining workers because it stands well below such larger competitors as Boeing Co., Lockheed Martin Corp., Raytheon Co. and Northrop Grumman Corp. in terms of resources, according to JSA Research Inc. aerospace analyst Paul Nisbet. Loyalty is hard to maintain in the aerospace industry, he said, because "they are all doing about the same thing," Nisbet said. "When they don't have a particular talent, they go out and hire it from their competitor." However, for market participants SAIC's employee-centered structure "makes it less attractive as an investment, because the employees will still be running the company, not the stockholders," Nisbet said. On its Web site, SAIC boasts that its employee-ownership model has created "a company of entrepreneurs." The site also records the wisdom of founder J. Robert Beyster: "If people get ownership, either those within or outside of the company, make sure they earn it." Still, the company frets in its prospectus released by the Securities and Exchange early Monday that its employees might "perceive that becoming a publicly traded company will negatively impact our employee ownership culture," making it a less desirable place to work. Under the company's current rules, employees buy and sell their shares among themselves and have to sell their stake when they leave the company. After the company goes public, employees will be able to hold their preferred shares indefinitely, even after leaving the company. In connection with the IPO, SAIC said it plans to pay its employee-shareholders a special dividend $1.6 billion to $2.4 billion. When it first filed for its IPO in September of last year, the company registered to sell up to $1.73 billion in common stock. The new prospectus sets the price range between $13 and $15 a share. At the upper end of that range, the offering will be valued $1.1 billion, or $1.3 billion if the underwriters exercise their overallotment rights. The company's market capitalization will be about $6 billion if the IPO prices at $15 a share. The underwriters have the overallotment rights to purchase up to an additional 11.25 million shares. For the six months ended July 31, SAIC earned $209 million, off from $682 million in the same period a year earlier. The decrease was primarily the result of a $542 million after-tax gain on the sale of the company's Telcordia unit during the six months ended July 31, 2005. SAIC said its common stock has been approved for listing on the New York Stock Exchange under the symbol "SAI." From saic at vision.moundalexis.com Wed Oct 4 03:23:22 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 3 Oct 2006 23:23:22 -0400 (EDT) Subject: [saic] SAIC (SAI) Sees IPO Price of $13-$15 Message-ID: <20061003232205.E26528-100000@vision.moundalexis.com> 3 October 2006 ; StreetInsider.com SAIC (SAI) Sees IPO Price of $13-$15 http://www.streetinsider.com/IPOs/SAIC+(SAI)+Sees+IPO+Price+of+$13-$15/1228469.html --- In an amended filing with the SEC after the close yesterday, SAIC, Inc. (NYSE: SAI) indicated it sees an IPO price of $13-$15 per share on 75 million shares. The company has been approved to list their common stock on the New York Stock Exchange under the symbol "SAI". SAIC said a special dividend of between $1.6 billion and $2.4 billion will be declared prior to this offering by principal operating subsidiary and, following completion of this offering, paid to its stockholders of record, including directors and officers. The company said it will not pay this special dividend on shares sold in this offering. After the payment of this special dividend and the completion of this offering at an assumed public offering price of $14 per share, and after deducting estimated underwriting discounts and commissions and offering expenses, the company's consolidated cash reserves will be reduced by a net amount ranging from approximately $620 million to $1.4 billion, or from $470 million to $1.3 billion if the underwriters exercise their over-allotment option in full. The offering is being made through an underwriting syndicate including Morgan Stanley, Bear Stearns, Citigroup, Wachovia, Banc of America, Cowen, Jefferies, Stifel Nicolaus, William Blair, KeyBanc, Mellon Financial and Stephens. SAIC, Inc. is leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. >From fiscal 2002 to fiscal 2006, consolidated revenues increased at a compound annual growth rate of 15.5% to a company record of $7.8 billion, inclusive of acquisitions and exclusive of Telcordia Technologies, Inc., their commercial telecommunications subsidiary, which they divested in March 2005. The U.S. Government is SAIC's largest customer, in the aggregate representing 89% of their total consolidated revenues in fiscal 2006. From saic at vision.moundalexis.com Wed Oct 4 21:09:43 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 4 Oct 2006 17:09:43 -0400 (EDT) Subject: [saic] SAIC sets IPO terms Message-ID: <20061004170852.H26528-100000@vision.moundalexis.com> 4 October 2006 ; InvestorIdeas.com SAIC sets IPO terms http://www.homelanddefensestocks.com/DMR/News/100406.asp --- Defense Market Report Exclusively for InvestorIdeas.com By James Smith Employee-owned Science Applications International Corporation (SAIC) has set terms for its initial public offering (IPO) of 75 million shares at an estimated price range of US$13 to US$15 per share. Zacks.com helps individuals become successful investors with the tools to manage their investment Process SAIC is in a "quiet period," which imposes restrictions of a company's internal and external communications. The company originally filed for its IPO with the US Securities and Exchange Commission (SEC) over a year ago, on September 1, 2005 with the aim of selling US$1.73 billion of common stock. At the top end of the estimated range, the IPO will generate US$1.1 billion, or US$1.3 billion if underwriters exercise over-allotment rights to purchase an additional 11.25 million shares. Lead underwriters and joint bookrunners are Morgan Stanley and Bear Stearns. Co-managers are Banc of America, Citigroup, Cowen & Co, Jefferies & Co, Stifel Nicolaus and Wachovia Securities. In connection with the IPO, SAIC said it plans to pay its employee-shareholders a special dividend US$1.6 billion to US$2.4 billion. No special dividend will be paid on shares sold in the IPO. While the company has an impressive track record, after the IPO employees will still own 326 million shares of preferred stock, representing 81 per cent of total capital stock. Each preferred share has 10 votes while each common share has only one vote, diluting the voting power of non-employee shareholders. In essence, after the IPO, only 2.3 per cent of voting rights will be in non-employee shareholder hands. A quick look at SAIC's financials shows the company earning US$209 million for the six months ending July 31, 2006 against US$682 million for the same period in 2005. However, the disparity is attributable to a one-off after-tax gain of US$542 from the sale of the company's Telcordia unit. Most of the gain from the sale of Telcordia in March 2005 was recognized in the first quarter of fiscal 2006, but the sale contributed US$12 million towards net income and seven cents towards diluted earnings per share for the second quarter of fiscal 2006. The numbers for fiscal 2Q 2007 are more revealing. Revenues of US$2.1 billion for the quarter are 5 per cent from US$2.0 billion in the second quarter of fiscal year 2006. Operating income for the quarter increased 9 per cent from US$144 million in the second quarter of fiscal 2006 to US$157 million. Operating income margin increased from 7.4 per cent in the second quarter of fiscal 2006 to 7.6 per cent. Net income for the quarter increased 6 per cent from US$97 million in the second quarter of fiscal 2006 to US$103 million. Diluted earnings per share for the quarter increased 11 per cent from 54 cents in the second quarter of fiscal 2006 to 60 cents. And SAIC has just landed some new business. In late September, the US Air Force awarded the company a US$26 million contract to design a second space-based missile warning sensor as part of the Alternative Infrared Satellite System program. Also in late September, SAIC was awarded a US$45 million contract to support the 330th Aircraft Sustainment Wing at Robins Air Force Base. Again, in late September, a Raytheon-SAIC team was selected by NATO for a US$95 million missile contract. Investors may not find the employee-centered structure of SAIC as attractive as a pure-public play. But if the company continues to post good returns, that may not be an issue. Disclaimer James Smith is an independent columnist for this web site. James Smith may hold long or short positions in any of the stocks mentioned in this article and those positions can change at any moment. From saic at vision.moundalexis.com Wed Oct 4 21:10:38 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 4 Oct 2006 17:10:38 -0400 (EDT) Subject: [saic] SAIC initial public offering valued at about $1B Message-ID: <20061004171030.D26528-100000@vision.moundalexis.com> 4 October 2006 ; Washington Business Journal SAIC initial public offering valued at about $1B http://washington.bizjournals.com/washington/stories/2006/10/02/daily30.html --- Science Applications International Corp. plans to sell 75 million shares at between $13 and $15 a share in its IPO, the company disclosed in a Securities and Exchange Commission filing. At that price range, the San Diego-based government contractor, which has thousands of workers in the Washington area, will likely see its public offering take in about $1 billion. The company has been approved to list its shares on the New York Stock Exchange under the symbol "SAI." SAIC occupies about 1.3 million square feet in the Washington region at offices in McLean, Vienna, Reston and Columbia, Md. Shareholders of the engineering and research company recently approved a proposed merger agreement that paves the way for the firm to take its stock public. Under terms of the agreement, SAIC would become a subsidiary of a newly formed company, called SAIC Inc. Once the deal takes place, the new company will take its stock public when market conditions are favorable. SAIC has been an employee-owned company since its inception in 1969. Its 43,000 employees would retain control of the firm following its IPO. Morgan Stanley and Bear Stearns are lead underwriters for SAIC's initial public offering. From saic at vision.moundalexis.com Tue Oct 10 01:46:22 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 9 Oct 2006 21:46:22 -0400 (EDT) Subject: [saic] SAIC Gets $34M Government Contract Message-ID: <20061009214614.X26528-100000@vision.moundalexis.com> 9 October 2006 ; Houston Chronicle SAIC Gets $34M Government Contract http://www.chron.com/disp/story.mpl/ap/fn/4245830.html --- SAN DIEGO -- Science Applications International Corp. on Monday said it received a five-year contract worth up to $33.9 million to provide information technology support services to the U.S. Health Resources and Services Administration's Office of Information Technology. The pact provides for Web and database application development for grant program systems in the Maternal and Child Health Bureau, the HIV/AIDS Bureau and the Bureau of Health Professions. Those systems enable grantees and health care providers to report on performance of programs funded by HRSA grants. The contract also includes call center support, network services and the continued development of the Geospatial Data Warehouse, a public Internet tool that provides access to HRSA program information, health resources and demographic data. SAIC, an employee-owned defense contractor, last month approved a restructuring plan that cleared the way for an initial public offering expected this month. The company will create a class of common shares, listed on the New York Stock Exchange under the symbol SAI. From saic at vision.moundalexis.com Tue Oct 10 01:49:09 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 9 Oct 2006 21:49:09 -0400 (EDT) Subject: [saic] IPO REPORT: EHealth, Acme Packet Turning IPO Heads; SAIC On Deck Message-ID: <20061009214857.S26528-100000@vision.moundalexis.com> 9 October 2006 ; EasyBourse IPO REPORT: EHealth, Acme Packet Turning IPO Heads; SAIC On Deck http://www.easybourse.com/Website/dynamic/News.php?NewsID=69389&lang=fra&NewsRubrique=2 --- By Steve Gelsi NEW YORK (Dow Jones) -- Research and engineering company SAIC Inc. leads the market for initial public offerings as the week's richest deal, but tech firms Acme Packet and eHealth could draw bigger stock market performances based on pre-market buzz. IPO commentator John Fitzgibbon said Acme Packet and eHealth "are on the most wanted list" this week because "they both have exploding revenue and are have turned the corner on profitability." Acme Packet and eHealth mark the two latest potential darlings in the IPO market, which has quickly warmed up to tech-oriented deals this fall as evidenced by IPOs from Riverbed Technology (RVBD) , DivX (DIVX) and CommVault Systems (CVLT) . An online insurance broker, eHealth will come to market after WebMD (WBMD) rallied 43% in its IPO in September of last year. Debuting at $17.50, WebMD's shares now trade at just below the $40 mark. The market remains selective, however. Shares of Shutterfly (SFLY) kicked off Sept. 29 at $15, only to trade below $13 now. SAIC on deck SAIC plans to offer 75 million shares at $13 to $15 each, which would yield proceeds of about $1 billion in its IPO. Self-described at the largest employee-owned research and engineering company in the U.S. with more than 43,000 employees, SAIC will join a rare class of billion-dollar-plus IPOs, including MasterCard Inc. (MA) and Warner Chilcott (WCRX) . In an unusual move, the employee-owned company will pay a special dividend of up to $2.4 billion prior to the IPO to directors, officers and other shareholders. SAIC performs much government work for which security clearances are required, and it's poised to benefit from the U.S. military buildup as part of the global war on terror. eHealth to raise $55 mln Meanwhile, eHealth plans to offer 5 million shares at $10 to $12 each, in a bid to raise about $55 million with underwriters Morgan Stanley and Merrill Lynch. The company rang up net income of $2.7 million on revenue of $27.2 million in the six months ended June 30, compared to a year-earlier loss of $209,000 on revenue of $19.2 million. "While the company just turned profitable, we think that the its two- to three-year goal of achieving 25% to 30% operating margins is plausible, because much of its initial infrastructure costs in technology and customer care are eminently leveragable," Renaissance Capital said in its IPO of the week column. Acme Packet shoots for $80 mln Also on deck, Acme Packet (APKT) plans to raise about $80 million by offering 11.4 million shares at $6.50 to $7.50 each with underwriters Goldman Sachs and Credit Suisse. The company sells technology to provide secure and high-quality interactive communications across Internet protocol network borders. For the six months ended June 30, Acme Packet reported net income of nearly $11.3 million on revenue of $38 million, compared to $83,000 in net income and $16.7 million in revenue in the year-ago period. Acme Packet's shareholders include Menlo Ventures, Advanced Technology Ventures and Canaan Partners. From saic at vision.moundalexis.com Tue Oct 10 21:29:47 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 10 Oct 2006 17:29:47 -0400 (EDT) Subject: [saic] Cramer Endorses SAIC IPO Message-ID: <20061010172940.O26528-100000@vision.moundalexis.com> 10 October 2006 ; Blogging Stocks Cramer Endorses SAIC IPO http://www.bloggingstocks.com/2006/10/10/cramer-endorses-saic-ipo/ --- By Jon Ogg Cramer said that Don Rumsfeld has capitulated and essentially allows the Army to buy whatever it wants now. In his search for a new defense stock, Cramer was discussing the upcoming SAIC IPO, which is to debut this week under the "SAI" ticker. SAIC, Cramer said, is the government-IT and has 89% of its business from our government. It will be the lead systems integrator for the advanced combat systems and also is an IT supplier to NASA. Cramer then discussed where to buy it. He said SAIC is expected to come public at $13.00 to $15.00, and he thinks that even at $15.00 it is still too cheap compared to other defense contractor multiples. According to Cramer, SAIC is in a league of its own and deserves a 20 P/E like the other defense contractors rather than a 15 P/E. He said investors should be buyers of SAIC up to $20.00 to $22.00. As for another defense contractor, Cramer said he'd stay away from Armor Holdings Inc. (NYSE: AH) after its warning last week. Jon Ogg is a partner in 24.7 Wall St, LLC; he does not own securities in the companies he covers. From saic at vision.moundalexis.com Tue Oct 10 21:33:26 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 10 Oct 2006 17:33:26 -0400 (EDT) Subject: [saic] SAIC Wins Information Technology Deal Message-ID: <20061010173314.A26528-100000@vision.moundalexis.com> 10 October 2006 ; San Diego Business Journal SAIC Wins Information Technology Deal http://www.sdbj.com/industry_article.asp?aID=96468012.0427317.1375699.114889.3060709.947&aID2=105814 --- Science Applications International Corp., a San Diego-based engineering company, announced Oct. 9 that it has been awarded an information technology contract worth $33.9 million at full exercise from the Health Resources and Services Administration. The HRSA is an agency of the U.S. Department of Health and Human Services and is the primary federal agency for improving access to health care services for the uninsured, isolated and medically vulnerable. SAIC's information technology services will help agency grant recipients and health care providers report on the effectiveness of HRSA-funded programs within HRSA bureaus. The contract has a one-year base term and four one-year options. Under the contract, SAIC will also continue the development of the Geospatial Data Warehouse, which will help HRSA staff and policy-makers determine where health resources and services should be focused. SAIC had 2006 revenues of $7.8 billion and 2005 revenues of $7.2 billion. SAIC's fiscal year ends Jan. 31. -- Andy Killion From saic at vision.moundalexis.com Tue Oct 10 21:35:21 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 10 Oct 2006 17:35:21 -0400 (EDT) Subject: [saic] SAIC Names CTO for the Space and Geospatial Intelligence Business Unit Message-ID: <20061010173507.R26528-100000@vision.moundalexis.com> 10 October 2006 ; GISuser.com SAIC Names CTO for the Space and Geospatial Intelligence Business Unit http://www.gisuser.com/content/view/10002 --- SAIC Names Robert H. Latiff Chief Engineering and Technology Officer for the Space and Geospatial Intelligence Business Unit (SAN DIEGO and MCLEAN, VA) - Science Applications International Corporation (SAIC) announced today that Robert H. Latiff (major general, U.S. Air Force, retired) has joined SAIC's Space and Geospatial Intelligence Business Unit as chief engineering and technology officer (CETO). Headquartered in Chantilly, Va., the business unit operates 25 locations throughout the United States. Its more than 2,000 employees work to solve some of the nation's most daunting architectural challenges in space and airborne surveillance and reconnaissance, space control, operational support to the warfighter, along with geospatial intelligence collection and exploitation. "Throughout his career, Bob has focused on critical missions to the defense and intelligence community," said K. Stuart Shea, SAIC senior vice president and general manager of the Space and Geospatial Intelligence Business Unit. "Bob is an expert on the vital role of intelligence and technology in the protection of U.S. interests across the globe. His dedication to the advancement of technology to detect, assess and combat national security threats further strengthens SAIC's deep intelligence and security domain expertise." In his most recent position, Latiff served as deputy director for systems engineering, National Reconnaissance Office (NRO), Chantilly, Va. In this role, he managed the NRO acquisition process and was functional manager and chief architect for NRO-wide systems engineering. Prior to that assignment, Latiff was director, advanced systems and technology at NRO where he led a team of scientists, engineers and futurists engaged in advanced research, applied technology and technology demonstration programs to further the state-of-the-art for the nation's space reconnaissance program. Latiff received his bachelor's degree in Physics. He earned a master's degree and doctorate degree in Materials Science from the University of Notre Dame. From saic at vision.moundalexis.com Wed Oct 11 10:54:48 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 11 Oct 2006 06:54:48 -0400 (EDT) Subject: [saic] SAIC Hits The Street Message-ID: <20061011065114.Q26528-100000@vision.moundalexis.com> 11 October 2006 ; Forbes SAIC Hits The Street http://www.forbes.com/home/businessinthebeltway/2006/10/10/business-beltway-saic-ipo-biz-wash-cz_ms_1011beltway.html --- By Matthew Swibel Business In The Beltway Thursday's initial public offering of shares in SAIC will test the market's willingness to shrug off an expected slowdown in the rate of defense spending growth, as well as some recent missteps by one of the country's largest government contractors. SAIC is hoping to raise as much as $1.2 billion by selling 19% of its stock in the offering. That's half a billion or so less than Google raised in its IPO a few years back and nearly a half billion less than Google is anteing up for fledgling YouTube. Yet even the $1.2 billion isn't a sure thing for SAIC. The money is being raised primarily to cash out employee-holders at SAIC and, secondarily, to expand the business. SAIC, which used to stand for Science Applications International Corp., says it will pay up to $2.4 billion of the $3.4 billion cash pile it expects to have after the offering to its employee-owners in the form of a special dividend. If all goes as planned, SAIC would be valued at around $6.4 billion, putting it between Harris and Computer Sciences in terms of market capitalization of large defense contractors. Defense stocks are up 6.33% year-to-date, two percentage points more than the S&P 500. While annual defense spending is expected to grow by more than $40 billion from current levels through fiscal year 2012, the pace of growth will slow beginning in 2008, according to U.S. Defense Department budget planners. In the case of San Diego-based SAIC, there's another complication in gauging its prospects: a significant chunk of its 9,000 active government contracts involve classified work for secretive agencies. "While many classified contracts can be relatively stable, their obvious lack of visibility presents some challenges for analysts and investors trying to determine the long-term performance of companies operating in this area," says Scott Sacknoff, manager of the SPADE Defense Index, an exchange-traded fund that tracks 57 defense companies. SAIC management attempted to go public twice before, but was delayed by recent changes in federal pension law and a troubled contract with the government of Greece. As late as August, Chief Executive Kenneth Dahlberg suggested to an audience at a National Contract Management Association conference that the IPO wasn't a sure thing. SAIC's clout in Washington is a lot surer. It has $4 billion worth of contracts with the U.S. Department of Homeland Security, which has paid private contractors at least $130 billion since the 9/11 attacks. SAIC's largest customer, the National Security Agency, paid it $1 billion to build a computer system to analyze and store the kind of e-mails, phone calls and other data that has landed the agency in the middle of a huge public controversy. SAIC counts several former senior defense officials among its executive ranks, as well as the former chief information officer for the Social Security Administration and a former higher-up at the U.S. Environmental Protection Agency. For all its sway in and around Washington, SAIC's margins don't look much different from the grocery business. Income from continuing operations totaled $345 million on $7.8 billion in revenue in 2006. That amounts to a 4% profit margin during what many describe as the best of times for government contractors. Morever, SAIC has had its share of stumbles in the past few years. Shortly after Dahlberg took the helm in 2003, the company was forced to scrap an electronic case management system, known as Trilogy, for the FBI. Poorly designed software code and a lack of cost controls at SAIC were at least partially to blame for the project's failure, according to published excerpts of a 2005 audit. (That year the FBI awarded a replacement for Trilogy, named Sentinel, to Lockheed Martin for $305 million.) Another foul-up was for a similar sort of project at the NSA, called Traiblazer, awarded to SAIC in 2002. Four years on, the company and agency have effectively abandoned $1.2 billion in development costs. A Baltimore Sun report blamed the failure in part on SAIC's reluctance to level with the government about the feasibility of what it wanted. This summer, SAIC's performance on yet another contract--this one with DHS for infrared scanners used to detect hazardous materials--came under fire from the Democratic members of the House Committee on Government Reform. A 2006 investigation, undertaken by the minority members of the committee, found that 670 machines SAIC had sold to the Office of Customs and Border Protection at a cost of about $286 million "are so highly sensitive to radiation that they cannot distinguish between weapons-grade nuclear material and... cat litter." Still, all the high-profile mishaps haven't scared away government procurement officers--yet. SAIC enjoys a funded backlog of work amounting to $4 billion, and through the first half of its fiscal 2007, revenue is up 6% from year-ago levels. "It will be one of the largest IPOs in the market this year," says Sacknoff. From saic at vision.moundalexis.com Thu Oct 12 00:19:39 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 11 Oct 2006 20:19:39 -0400 (EDT) Subject: [saic] SAIC to look out for HHS unit's IT needs Message-ID: <20061011201933.V26528-100000@vision.moundalexis.com> 11 October 2006 ; Washington Technology SAIC to look out for HHS unit's IT needs http://www.washingtontechnology.com/news/1_1/daily_news/29471-1.html --- By Doug Beizer Staff Writer Science Applications International Corp. won a $33.9 million contract to perform Web and database application development for a Health Resources and Services Administration grant program. Under the contract, SAIC of San Diego will deliver lifecycle information technology support services to the Health Resources and Services Administration's Office of Information Technology. The five-year contract is for one year and four one-year options. The SAIC-led team will deliver services to support HRSA grant program systems in the Maternal and Child Health Bureau, the HIV/AIDS Bureau and the Health Professions Bureau. These systems enable grantees and health care providers nationwide to report performance on programs funded by HRSA grants. In addition, SAIC will furnish subject-matter expertise to Maternal and Child Health Bureau, assist with developing grant guidelines and performance measures, and provide direct help in the application processes. The company also will assist in ongoing development of the Geospatial Data Warehouse, a publicly available Internet tool that offers a single point of access to HRSA programmatic information, health resources and demographic data. Other work under the scope of this contract includes call-center support and network services. HRSA, which is part of the Health and Human Services Department, is responsible for improving access to health care services for people who are uninsured, isolated or medically vulnerable. SAIC, which has 43,000 employees and had annual revenue of $7.8 billion in fiscal 2006, ranks No. 3 [1] on Washington Technology's 2006 Top 100 [2] list of the largest federal IT contractors. --- [1] http://www.washingtontechnology.com/top-100/2006/3.html [2] http://www.washingtontechnology.com/top-100/2006/ From saic at vision.moundalexis.com Thu Oct 12 00:21:40 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 11 Oct 2006 20:21:40 -0400 (EDT) Subject: [saic] SAIC IPO picking up steam, analyst says Message-ID: <20061011201941.J26528-100000@vision.moundalexis.com> 11 October 2006 ; MarketWatch SAIC IPO picking up steam, analyst says http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7B1178D8E4-369B-41B6-A592-212342B96D2D%7D --- By Steve Gelsi NEW YORK (MarketWatch) -- Friday's initial public offering from SAIC is picking up steam, said IPO analyst John Fitzgibbon of IPOscoop.com. Fitzgibbon on Wednesday raised his rating on SAIC to three stars from two stars. "The IPO is probably drawing its strength from the underlying stock market and defense contracting as a growing industry," Fitzgibbon said. "It's a big company and it's established. It could be undervalued compared to its competitors." SAIC, an employee-owned science and engineering firm, plans to offer 75 million shares at $13-$15 a share in a bid to raise about $1.05 billion with underwriters Morgan Stanley (MS) and Bear Sterns (BSC). The IPO is expected to price late Thursday and trade on Friday. From saic at vision.moundalexis.com Thu Oct 12 11:26:06 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Thu, 12 Oct 2006 07:26:06 -0400 (EDT) Subject: [saic] Filings Illuminate IPO's Bumpy Ride Message-ID: <20061012072233.H26528-100000@vision.moundalexis.com> 12 October 2006 ; Washington Post Filings Illuminate IPO's Bumpy Ride http://www.washingtonpost.com/wp-dyn/content/article/2006/10/11/AR2006101101866.html --- By Griff Witte Washington Post Staff Writer Page D01 For 37 years, Science Applications International Corp. has been owned by its employees. In that time, the company has grown from nothing to an $8 billion giant that does some of the government's most sensitive work in intelligence, homeland security and defense. But within days, those employees -- 43,100 of them, more than a third of whom live in the Washington area -- will have to learn to share their company with people who have never before had the chance to own SAIC stock: members of the public. SAIC shares could begin trading on the New York Stock Exchange as soon as tomorrow in an initial public offering estimated to be worth $1 billion, which would be among the largest IPOs ever in the defense industry. [1] Chart: A Closer Look The shift to a public company is the culmination of a broader transformation for SAIC of San Diego, which has grown significantly in recent years and is gunning to move into the top tier of contractors. But SAIC has stumbled several times along the way. In recent public filings, it has had to acknowledge that more problems lie ahead as the government market flattens and as it continues to be dogged by questions about its performance. "The thing that really stands out to me about this IPO is how difficult it's been for the company," said Philip Finnegan, director of corporate analysis at Teal Group Corp., a market research firm. The offering is "smaller than they were originally talking about. It's been delayed so long. And now they've had to admit some programmatic embarrassments." As with all companies that plan to go public, SAIC was required to disclose the risks of buying its stock in a filing with the Securities and Exchange Commission. That filing shows that the company lost $123 million on a contract with the government of Greece to provide security at the 2004 Olympics in Athens, and it could lose substantially more. Greek authorities have long maintained that SAIC did not meet its obligations under the contract, and that they should get their money back. SAIC has also been criticized for its work on other high-profile projects, including the FBI's case-management system, data-mining software for the National Security Agency and a television station for post-invasion Iraq. A spokeswoman for SAIC declined to comment because the company is in its "quiet period" before the IPO. But the firm has defended its work in the past. SAIC was supposed to go public earlier this year, but the company put off the IPO because it first wanted to resolve problems with the Olympics contract. The delay was ill-timed. The government contracting industry had been flying high as of early 2006, reaching the peak of the boom that followed the Sept. 11, 2001, terrorist attacks. Since then, revenue and profit have begun to level off, as have company stock prices. SAIC had originally indicated it planned to raise as much as $1.7 billion with its IPO, but a softer market meant that it had to set its sights lower. Still, the IPO promises to be lucrative for SAIC employees, who would initially hold 81 percent of the company's shares. Not only will employees be able to sell their stock on the public market, but they will also receive a substantial dividend. SAIC has said it would return all the proceeds of its IPO and then some -- $1.6 billion to $2.4 billion in all -- to its current shareholders. Company directors and top executives would benefit most from that arrangement, as they are the biggest stockholders. Chief executive Kenneth C. Dahlberg, for example, owns 335,927 shares, according to company filings. But average employees would also gain if the stock performs well, and that could have ripple effects on the regional economy. SAIC is the region's fourth-largest private-sector employer with around 16,000 workers locally, many of them well-paid engineers, consultants and scientists who possess high-level government clearances and work side by side with government employees on top-secret programs. "If experience is any guide, there will be a real impact here in terms of spending and wealth creation," said Anirban Basu, chief executive of the economic consulting firm Sage Policy Group Inc. "Often, people who find themselves in a lot of money in a short amount of time are in the habit of making a big-ticket purchase -- and perhaps several of them. This is the type of thing that gives berth to Ferraris and Bentleys." SAIC could make some big-ticket acquisitions of its own. Dahlberg joined the company in late 2003 with the goal of rapid growth, after decades of steady expansion under founder J. Robert Beyster. Since 2004, revenue is up by more than $2 billion, and profit has more than doubled as SAIC cashed in on rising demand for high-end technology and personnel after the 2001 attacks. "They've got whole buildings out there in Tysons Corner that are funded by agencies that we're not going to even talk about," said John E. Pike, director of GlobalSecurity.org, a Web site that tracks the defense and intelligence sectors. "They must be doing something right." Dahlberg, a veteran of General Dynamics Corp. in Falls Church, has made no secret that he wants to put SAIC in the same league as contracting behemoths such as Lockheed Martin Corp., Northrop Grumman Corp. and General Dynamics. He has streamlined the company's structure, which had been famously decentralized, with company units sometimes competing against each other for the same work. The IPO is intended to help the company grow even more because it would free capital that had been used to buy back employee stock. Trading is to begin at $13 to $15 a share. Fourteen dollars a share would give SAIC a market value of $5.6 billion. But some worry that SAIC could lose something after it joins the ranks of public companies. Retired Adm. Bobby Ray Inman, former head of the NSA and an SAIC board member for two decades, said employee ownership was what drew him to the company. "For me, the principal value of the employee-owned culture was the focus on integrity and accountability," said Inman, who left the board several years ago. "Will that be maintained now? I don't know." --- [1] http://media3.washingtonpost.com/wp-dyn/content/graphic/2006/10/12/GR2006101200101.gif From saic at vision.moundalexis.com Thu Oct 12 11:41:31 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Thu, 12 Oct 2006 07:41:31 -0400 (EDT) Subject: [saic] Anticipation ends today for SAIC's IPO Message-ID: <20061012073258.P26528-100000@vision.moundalexis.com> 12 October 2006 ; San Diego Union-Tribune Anticipation ends today for SAIC's IPO http://www.signonsandiego.com/news/business/20061012-9999-1b12saic.html --- S.D. company hopes share price will bring $1.1 billion in trading tomorrow By Bruce V. Bigelow UNION-TRIBUNE STAFF WRITER If everything proceeds according to plan, the metamorphosis of San Diego's SAIC will be completed later today when investment firms set the share price for the company's initial public offering, or IPO. With the price set, SAIC shares will begin trading tomorrow on the New York Stock Exchange under the ticker symbol SAI, launching a new phase for the secretive defense contractor as a publicly traded company. [1] Photo. Credit: The Washington Post. Caption: SAIC's headquarters are in San Diego, but about 16,000 work for SAIC in the Washington, D.C., area. This is a Virginia office. Many of SAIC's 43,000 employees are closely watching its IPO. "We're probably the stealthiest 37-year-old company in the business," Ken Dahlberg, SAIC's chairman and chief executive, said in a video presentation to institutional investors. A corporate spokesman said the company would not comment for this story. SAIC said in a filing last week that the company hopes to raise more than $1.1 billion by selling at least 75 million shares in its initial public offering. If that turns out to be the case, SAIC's IPO will rank as the country's second-biggest debut so far this year, behind the nearly $2.58 billion IPO for MasterCard in May, according to Thomson Financial. The SAIC IPO also undoubtedly ranks among the most widely anticipated events for thousands of current and former employees who got a personal stake in the business through SAIC's employee ownership program. "I'm pleased that we're going public," said Tom Munnecke, a retired SAIC employee in San Diego. "It's not the first day's selling that's going to make the difference, though. It's what the stock does over time." [2] Chart. Credit: Input/Union-Tribune Title: Federal IT Market The IPO also represents a fundamental transformation in the employee-owned company, which was founded in La Jolla in 1969. "I think that SAIC will prove to be very exciting as a public entity if we can remain nimble," said Tom Dillon, a retired SAIC executive in San Diego. "It will be an incredibly interesting year for shareholders." The company plans to distribute essentially all of the proceeds from its IPO to its employee and retiree stockholders as a special dividend payment that is expected to be about $15 a share. The company said in a filing last week that the price for its stock would likely range between $13 and $15 a share, with the upper range generating a total of more than $1.1 billion. The total could rise to as much as $1.3 billion if the investment firms underwriting the offering exercise rights that allow them to distribute an additional 11.25 million shares. The IPO was preceded by a reorganization that allotted existing shareholders two new shares of SAIC for each common share they held in the "old SAIC." If the IPO is priced at $15 a share, that means the total value of two new shares, plus the dividend, would total $45 -- or slightly below the company-set value of old SAIC stock, which was $47.28 per share. As an established defense contractor with $7.8 billion in revenue last year, SAIC stands apart from many IPOs for high-flying startup companies that have grabbed so much attention on Wall Street in recent years. In his presentation to investors, Dahlberg emphasized the strength and predictability of SAIC's business, citing the company's regular and recurring revenue from major defense programs, such as the Army's multibillion-dollar Future Combat System. In an age when new threats to national security seem to emerge annually, Dahlberg also noted that about 23,000 of SAIC's 43,000 employees have security clearances to work on classified government programs. SAIC does not specify how many of its 9,000 active government contracts involve classified work for military and intelligence agencies. But the National Security Agency and the Central Intelligence Agency rank among the company's biggest customers for information technology contracts. To some investors, though, the key to SAIC's future lies in some provocative estimates by Input, a government market research firm in Reston, Va. Input projects that federal spending for outsourced information technology work will grow faster than any other segment of federal information technology services -- climbing from $13.3 billion in fiscal 2006 to $17.7 billion in fiscal 2011. Input defines outsourcing as a long-term relationship in which a government agency delegates most or all of its functions to a contractor. The reason outsourcing will surge, Input contends, is because more than 45 percent of federal information technology workers will be eligible to retire by fiscal 2008. That means more federal business for companies such as SAIC that specialize in providing information technology services. SAIC "is unquestionably the new best-of-breed defense contractor," said Jim Cramer, the former hedge fund manager who hosts the "Mad Money" investment program on CNBC. The hyperkinetic stock televangelist gave SAIC's IPO a boost Monday by saying the company is "in a league of its own" and predicting the stock price would likely climb to more than $20 a share. Cramer was not alone in his assessment of SAIC, with several other analysts saying the company enjoys a strong reputation on Wall Street. Some pointed to the success of IHS, a much smaller government contractor that went public last November at $16 a share. Shares in the Colorado company have more than doubled, closing yesterday at $34. Nevertheless, SAIC's path toward its IPO has not exactly gone smoothly since its first filing with government regulators more than 13 months ago. The process was delayed twice because of unexpected complications, first with a troubled contract to provide a computer security network for the Greek government and most recently by changes in federal pension law. SAIC also has come under stinging criticism recently for breakdowns that forced the FBI to scrap an electronic case management system and for problems with Trailblazer, a contract the National Security Agency awarded to SAIC in 2002. In recent months, some employee shareholders also raised concerns within SAIC that the dividend payment planned as part of the IPO will trigger unwanted taxes on stock held in their retirement plans. They complained that the dividend amounted to a forced distribution from SAIC shares the employees held in their tax-deferred retirement accounts. "I'm being forced to make a sale at the worst time for me in terms of taxes, and also being forced to reduce my equity position," said Martin Fricke, 69, a former SAIC employee. One employee even prepared a two-page memorandum for SAIC's board in August, which argued that the company should forgo a $300 million tax benefit derived from the dividend payment on shares held in tax-deferred retirement accounts. Hillel Katzeff, a financial planner in La Jolla, said one of his clients showed him the memo weeks ago. "It will increase the tax benefits coming to the company," Katzeff said. "I would tell this guy: You are so fortunate to have this opportunity. It's not a curse; it's a benefit. Granted, yes, there are taxes due. But frankly I find it hard to shed a tear." The memo also failed to move Robert Willens, a leading corporate tax expert at Columbia University and a managing director at Lehman Brothers. "If the company doesn't pay the special dividend, it does not obtain any tax deduction and, presumably, pays tax on its taxable income at a 35 percent rate," Willens said in an e-mail. "My guess is that the company's bankers were able to demonstrate that the strategy they adopted would have a more beneficial impact on the IPO price than a strategy in which the corporation, itself, paid the taxes." --- [1] http://www.signonsandiego.com/uniontrib/20061012/images/saic.jpg [2] http://www.signonsandiego.com/uniontrib/20061012/images/saic.gif From saic at vision.moundalexis.com Fri Oct 13 12:36:40 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Fri, 13 Oct 2006 08:36:40 -0400 (EDT) Subject: [saic] SAIC, Defense Contractor, Raises $1.13 Billion in Initial Sale Message-ID: <20061013083531.K26528-100000@vision.moundalexis.com> 13 October 2006 ; Bloomberg SAIC, Defense Contractor, Raises $1.13 Billion in Initial Sale http://www.bloomberg.com/apps/news?pid=20601103&sid=aUdwsy1jrxbg&refer=us --- By Gillian Wee and Elizabeth Hester Oct. 12 (Bloomberg) -- SAIC Inc., an employee-owned U.S. defense contractor that supplies military and intelligence technology, raised $1.13 billion in an initial public offering. SAIC, formerly known as Science Applications International Corp., sold 75 million shares for $15 each, said people familiar with the San Diego-based company's offering. The price was at the high end of the $13 to $15 range forecast in SAIC's marketing documents filed with regulators. The price values the entire company at more than $6 billion. Proceeds will pay for expansion and acquisitions, said SAIC, which gets 89 percent of its revenue from the U.S. government. Revenue grew 8.4 percent to $7.8 billion in the year ended Jan. 31, and profit more than doubled to $927 million. The company said it expects spending to continue rising for several years and that its backlog of contracts totals $16 billion. "There's enough support for the war on terror and homeland security, which is their bread and butter," Ben Holmes, publisher of Morningnotes.com, said before the sale. "Everybody's chasing this thing." Underwriters were led by Morgan Stanley and Bear Stearns & Co. Defense Spending U.S. government spending in the areas SAIC competes will continue to grow over the next several years, the company said in its Oct. 2 filing. The company has 43,600 employees and about 9,000 active contracts. "The war on terror has almost doubled our defense spending and it doesn't look like it's going down in 2008, it's definitely not going down in 2007," said Paul Nisbet, analyst at JSA Research. "Lockheed Martin, General Dynamics and Northrop Grumman are heavily in that market and doing very well. There's no reason it wouldn't be the same for SAIC." Among SAIC's contracts is $2.7 billion in work as part of a team with Boeing Co. on the U.S. Army's Future Combat Systems, the company said. In June, SAIC and 24 other companies were awarded part of a U.S. Homeland Security Department computer- services contract worth as much as $45 billion over seven years. The shares will trade on the New York Stock Exchange under the symbol SAI. From saic at vision.moundalexis.com Fri Oct 13 12:38:45 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Fri, 13 Oct 2006 08:38:45 -0400 (EDT) Subject: [saic] IPO of SAIC Priced at $1.125B Message-ID: <20061013083748.O26528-100000@vision.moundalexis.com> 13 October 2006 ; Houston Chronicle IPO of SAIC Priced at $1.125B http://www.chron.com/disp/story.mpl/ap/fn/4255825.html --- NEW YORK -- The initial public offering of defense services contractor Science Applications International Corp. priced late Thursday at $15 per share, for a total value of $1.125 billion. SAIC, one of the nation's largest employee-owned companies, is selling 75 million shares. Its underwriters have the option to buy an additional 11.25 million shares, which would bring the total value of the offering to $1.3 billion. The stock has been approved for listing on the New York Stock Exchange under the symbol "SAI." SAIC also said it is paying a $2.45 billion special dividend to its employee owners. The IPO shares are not eligible for the dividend. SAIC has been profitable each of its 37 years and performs some of the U.S. government's most sensitive security work. The company has been employee-owned since it was founded in 1969. Employees will keep a class of preferred stock with ten votes per share, compared to one vote per share for the public stock. SAIC, which has more than 43,000 employees, earned $927 million on revenue of $7.79 billion in its fiscal year ended Jan. 31. From saic at vision.moundalexis.com Sun Oct 15 23:57:50 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 15 Oct 2006 19:57:50 -0400 (EDT) Subject: [saic] SAIC's IPO tops $1 billion Message-ID: <20061015195741.L26528-100000@vision.moundalexis.com> 15 October 2006 ; Washington Business Journal SAIC's IPO tops $1 billion http://washington.bizjournals.com/washington/stories/2006/10/09/daily54.html --- Government contractor SAIC, which has thousands of workers in the Washington area, raised $1.12 billion in its IPO. SAIC, which is based in San Diego and has a regional headquarters in McLean, sold 75 million shares of common stock at $15 a share, on the high end of its forecasted price range, which was $13 to $15 a share. The IPO's underwriters were granted the right to purchase up to an additional 11.25 million shares to cover over-allotments. Shares of the engineering and research giant began trading on the New York Stock Exchange Friday under the ticket symbol "SAI." The company's stock jumped $3.18 a share, or 21.20 percent, to close Friday at $18.18 a share. As part of the IPO, the company is changing its name from Science Applications International Corp. to SAIC. The employee-owned company declared a special cash dividend of about $2.45 billion, payable to its stockholders of record as of Oct. 12. Morgan Stanley and Bear, Stearns & Co. served as joint book-running managers for the IPO. SAIC occupies about 1.3 million square feet in the Washington region, at offices in McLean, Vienna, Reston and Columbia. From saic at vision.moundalexis.com Sun Oct 15 23:58:48 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 15 Oct 2006 19:58:48 -0400 (EDT) Subject: [saic] SAIC Shares Add 21 Percent in Debut Message-ID: <20061015195840.L26528-100000@vision.moundalexis.com> 15 October 2006 ; Houston Chronicle SAIC Shares Add 21 Percent in Debut http://www.chron.com/disp/story.mpl/ap/fn/4257763.html --- By DAN CATERINICCHIA AP Business Writer WASHINGTON -- Shares of defense services contractor Science Applications International Corp. added more than 21 percent Friday in the company's trading debut. SAIC, one of the nation's largest employee-owned companies, priced its 75-million-share initial public offering at $15 per share, for a total value of $1.125 billion. Its underwriters, Morgan Stanley and Bear, Stearns Cos., have the option to buy an additional 11.25 million shares. The stock, listed on the New York Stock Exchange under the symbol "SAI," closed at $18.18 after earlier reaching a high of $18.39 per share. San Diego-based SAIC also said it is paying a $2.45 billion special dividend to its employee owners, funded largely by cash on hand before the offering. The IPO shares are not eligible for the dividend. The company has said cash remaining after the dividend payment and borrowing capacity under its credit facility "will be used for general corporate purposes, including working capital, capital spending, internal growth initiatives and possible investments in, or acquisitions of, complementary businesses, services or technologies," according to a filing last week with the Securities and Exchange Commission. SAIC has been profitable each of its 37 years and performs some of the U.S. government's most sensitive security work. Its competitors represent the Pentagon's top contractors, including Lockheed Martin Corp., General Dynamics Corp., Boeing Co., Northrop Grumman Corp. and Raytheon Co. "They're right up there in terms of the competitive landscape and from a strategic standpoint, obviously they have a solid position," said Peter Arment, an analyst at JSA Research Inc. in Newport, R.I. "Their margins are below their peers, but over time there's significant room for improvement." Arment said he expects SAIC shares to be in the $20 range by year's end. SAIC has been employee-owned since it was founded in 1969. Employees will keep a class of preferred stock with 10 votes per share, compared to one vote per share for the public stock. Chief Executive Kenneth Dahlberg, who owns 335,927 shares and joined the company in 2003 from General Dynamics, has said SAIC was going public because it wanted to stop bleeding cash to buy stock. SAIC spent $2.4 billion in the last five years to purchase stock from employees, who can buy and sell shares once every three months at a price determined by a company auditor. Employees have wanted to sell more than buy, prompting SAIC to purchase shares from its workers in what is an otherwise illiquid market. Last year, it disclosed plans to raise up to $1.73 billion in the IPO, but delayed the sale to settle differences with the Greek government over a contract to install a security system for the 2004 Olympic Games. The company has recorded $123 million of losses under the Greek contract as of July 31, according to SEC filings. SAIC, which has more than 43,000 employees, earned $927 million on revenue of $7.79 billion in its fiscal year ended Jan. 31. SAIC's big day did not appear to bolster some of its competitors' stocks. Shares of Boeing lost $1.25 to end at $82.39, and General Dynamics fell $1.60, or nearly 2.1 percent, to 76.09, trading on the NYSE. But the news wasn't all bad: Lockheed Martin added 4 cents to end at $88.60, while Raytheon gained 80 cents to $50.65 and Northrop Grumman rose 28 cents to $69.46, all on the NYSE. From saic at vision.moundalexis.com Mon Oct 16 00:01:29 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 15 Oct 2006 20:01:29 -0400 (EDT) Subject: [saic] SAIC Offering Raises $1 Billion Message-ID: <20061015200117.B26528-100000@vision.moundalexis.com> 14 October 2006 ; Washington Post SAIC Offering Raises $1 Billion http://www.washingtonpost.com/wp-dyn/content/article/2006/10/13/AR2006101301524.html --- IPO Seen as Vital To Big Acquisitions By Griff Witte Washington Post Staff Writer D01 Government contractor Science Applications International Corp. vaulted into life as a public company Friday, with its stock climbing more than 20 percent in its first day of trading and the firm raising more than $1 billion. Shares of San Diego-based SAIC had been priced at $15 late Thursday night, but opened two dollars higher when chief executive Kenneth Dahlberg rang the bell at the New York Stock Exchange yesterday morning. The stock climbed above $18 in heavy trading within the first half-hour, then leveled off to close the day at $18.18. The initial public offering ends a tradition of employee ownership dating to 1969, and for the first time gives the firm's 43,000 employees -- 16,000 of whom live in the Washington area -- a public market for company stock. It also entitles them to an immediate windfall: The company said it would distribute a $2.45 billion dividend to all pre-IPO stockholders. Dahlberg said in an interview yesterday that the decision to go public was made "in order for us to continue to grow . . . The industry will be consolidating, and we want to be a consolidator." Although the IPO will not give the company an immediate infusion of cash because of the dividend, it is expected to free up capital over the long term since the company will no longer have to buy back employee stock. That money, Dahlberg said, will be used instead to purchase other firms. "We've been an acquirer over the history of the company. Post-IPO, we'll have the firepower to do the larger acquisitions -- $200 million, $500 million and even up to a billion-dollar companies," he said. The IPO was considered by analysts yesterday to be a relatively successful culmination to what had been an arduous process for the firm. The offering was initially scheduled for early 2006 but had to be pushed back because of problems the company has had with a contract to supply security at the 2004 Olympics in Athens. Dahlberg yesterday called that contract "a singular, horrendous problem for the company." SAIC has lost $123 million on the deal and could lose more because Greek authorities have insisted the company did not fulfill its obligations under the contract. Dahlberg defended the firm's work but said "the customer interpreted performance differently than we did." By the time the IPO was rescheduled earlier this month, the government contracting market had cooled, and the company had to scale back its ambitions from an original target value of $1.7 billion. Still, at $1.13 billion, the IPO ranked as the second largest so far this year. "There was pretty good demand," said Paul Nisbet, a defense analyst with JSA Research Inc. "Information technology has been the best-growing part of the federal government as far as its purchases from industry. And this is the third-largest government IT provider in the country." SAIC has grown quickly in recent years, particularly since 2001, as demand soared for products and services in the realms of defense, homeland security and intelligence. The company, which had $7.8 billion in revenue and $927 million in profit last year, receives 89 percent of its business from the federal government. Among its largest contracts is one to design the next generation of combat systems for the Army. Despite the IPO, employees will retain control of the company. When trading began yesterday, they owned 81 percent of company shares and held 98 percent of voting power because employee shares count for 10 votes, compared with one vote for each share of common stock. For employees, 80 percent of whom own stock, the IPO represents a financial opportunity. But it is not likely to make rank-and-file workers rich -- at least not initially. SAIC shares had been at $47.28 when the company's board of directors last set the internal price in June. After the close of trading yesterday, those same shares were worth around $51. That's because the dividend will yield roughly $15 for every old share, and every old share has been turned into two new public shares, each worth $18.18 yesterday. "I don't think there's a Microsoft syndrome where, suddenly overnight, everyone's a millionaire," said Jerry Berns, 72, of Arlington, who worked for SAIC for 20 years as a software architect and retired eight years ago. SAIC's internal price has been rising steadily since the company's creation in 1969, giving stockholders a degree of certainty that their investment will continue to appreciate. Berns said he welcomes the IPO because he believes the internal price was set too low in recent years, although he acknowledges his investment is now more of a risk. "I think it will seek a higher level, but the downside to that is volatility," said Berns, who, like many retirees, still owns company stock. Of course, volatility can be a good thing. "I'll take 20 percent [growth] any day," Berns said. "I could live with that." From saic at vision.moundalexis.com Mon Oct 16 00:03:23 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 15 Oct 2006 20:03:23 -0400 (EDT) Subject: [saic] SAIC takes off in stock debut Message-ID: <20061015200312.C26528-100000@vision.moundalexis.com> 15 October 2006 ; San Diego Union-Tribune SAIC takes off in stock debut http://www.signonsandiego.com/news/business/20061014-9999-1b14saic.html --- Defense contractor's shares rise 21 percent By Bruce V. Bigelow UNION-TRIBUNE STAFF WRITER SAIC, the secretive San Diego defense contractor once described as "the company of spies," stepped into the national spotlight yesterday when its shares jumped 21 percent in its debut as a publicly traded company. The stock, priced at $15 a share before the market opened, closed at $18.18 in trading of more than 39.4 million shares -- making SAIC the most actively traded stock on the New York Stock Exchange yesterday. The company's IPO, or initial public offering, was widely anticipated by Wall Street partly because SAIC's business is both well-established and focused on areas where government spending has been rising. The company provides scientific, engineering and information technology services to the U.S. military and other government agencies, and generated $7.8 billion in revenue last year. Much of the company's work involves classified programs, such as thwarting roadside bombs in Iraq. SAIC's stock began trading on the NYSE under the ticker "SAI" after Ken Dahlberg, SAIC's chairman and chief executive, rang the opening bell from a balcony overlooking the trading floor. Thursday night, investment firms handling SAIC's IPO priced its stock at $15 a share and the company sold 75 million shares to mutual funds and other institutional investors. Those transactions raised more than $1.1 billion for the company, and ranked SAIC's IPO as the second-biggest so far this year, according to Thomson Financial. The institutional investors, in turn, began selling their SAIC shares into the public market yesterday at $17 a share -- scoring an immediate profit on the 13 percent markup. "I think it went well," said Jim LoJacono, who worked for SAIC for 10 years before retiring this year. "I know there were some people who were hoping it would rocket to $20 or $22 a share," LoJacono added. "But I was in the rocket business for a number of years. And while rockets do go up, they also come back rather precipitously." With more than 420 million shares outstanding, the closing price gave the company a market valuation of more than $7.6 billion. "It's an important day in the company's history," Dahlberg said. "I'm really proud of all the employees. They're just doing remarkable, innovative technical achievements day by day. This (company) is a national resource, and I think we are seeing the respect this company is due in our first day of trading." After distributing roughly $2.5 billion to its employee-shareholders as a dividend, Dahlberg said the company would still have about $1 billion to acquire other companies, along with very little debt and good cash flows. "We see our focus going forward in the national security space," Dahlberg said, as well as in intelligence and defense transformation. "I'm not just going to buy to bulk up," Dahlberg said. "I will buy strategic acquisitions. That means the key mission, key customer and enabling technology that's not currently in our company." Yet the IPO also reflects changes that numbers can't describe -- a watershed for the employee-owned company that J. Robert Beyster founded in 1969 next to a ballet studio in La Jolla. Under Beyster's share-the-wealth philosophy, more than 35,000 of SAIC's 43,000 employees held an ownership stake in the company, also known as Science Applications International Corp. During Beyster's reign, the company went to extraordinary lengths to maintain employee ownership as it grew from a boutique research firm into a conglomerate with billions of dollars in government contracts. SAIC devised an elaborate process to set the value of its shares and even created an internal brokerage to match employee stock purchases with sales in trades held every three months. The board set the share price, using a formula that included comparisons with publicly traded companies. As part of yesterday's IPO, the company converted common shares in the "old SAIC" for two shares in the "new SAIC" and included a $15 dividend payment for every employee shareholder. With the IPO closing at $18.18 a share, LoJacono and others noted that the public market's valuation of $51.36 (which represents the value of two new shares and the $15 dividend payment) was only slightly higher than the share price of $47.28 set by the board in June for SAIC's old stock. Yet even as they followed the IPO with satisfaction, some former employees lamented that the corporate culture that Beyster instilled has largely evaporated in SAIC's metamorphosis into a public company. "I'm a shareholder who benefited greatly from the unique ownership structure of SAIC," said Stephen Meyer, who held a variety of financial positions until the mid-1980s. "There are few, if any, public companies that have had the run that SAIC has had and I suspect that the company's future may not be as bright as its past -- certainly not as unique." Christopher Peterson, who worked for SAIC from 1985 to 1995, offered a similar view. "It was Bob Beyster's vision of employee ownership that really set SAIC apart from its competitors and imbued those who worked there with a higher sense of mission," Peterson said. With the IPO, he added, "SAIC is really no different culturally than any other large company selling labor hours, primarily to government clients." Under Beyster, who left the company in 2004, SAIC operated as a decentralized confederation of businesses that provided highly specialized research and services for the government. As a nuclear physicist, Beyster recruited other scientists to join the company by offering them an ownership stake in the business. As SAIC describes it on the company's Web site: "Beyster was not interested in attracting those looking to 'get rich quick.' " As the company grew, SAIC also encouraged an entrepreneurial spirit by allowing its business units to compete against each other for government business. The result was a sometimes-bruising and raucous organization that nuclear physicist Harold Agnew once described as "A farmers' market -- with central heating." Beyster made it clear yesterday that he wants SAIC to succeed. "A great many employees, associates and friends contributed to the overall success of the company for some 37 years," he said by e-mail. "I do hope they will continue to have success as a public company in the future." From saic at vision.moundalexis.com Mon Oct 16 23:23:12 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 16 Oct 2006 19:23:12 -0400 (EDT) Subject: [saic] SAIC Produces Future Force Company Commander (F2C2) Message-ID: <20061016192304.O26528-100000@vision.moundalexis.com> 16 October 2006 ; Earthtimes.org SAIC Produces Future Force Company Commander (F2C2) http://www.earthtimes.org/articles/show/news_press_release,4235.shtml --- MCLEAN, Va., Oct. 16 -- Science Applications International Corporation (SAIC) has created a videogame, Future Force Company Commander (F2C2), designed for the personal computer by the company's Tactical Systems and Solutions Business Unit. The F2C2 videogame was produced to help demonstrate the networked battle command that the Future Combat Systems (FCS) program is developing for the U.S. Army. F2C2 is a real-time tactical strategy game that allows the player to learn about the Army's FCS program by assuming command of a Mounted Company Team in the year 2015. Through game play, F2C2 showcases how FCS can provide the 21st century soldier unprecedented situational awareness, and the ability to see first, understand first, act first and finish decisively. "SAIC's F2C2 videogame demonstrates the FCS network-centric architecture that is being designed to seamlessly link advanced communications and networking systems with soldiers, platforms, weapons, and sensors," said John Gully, SAIC senior vice president and general manager of the Tactical Systems and Solutions Business Unit. SAIC with its teammate Boeing, is the lead systems integrator on the FCS contract. The company is executing on the project, which is currently in the system development and demonstration phase. Last year the FCS team was evaluated at 100 percent when it completed its System of Systems Functional Review. In August 2006 the One Team successfully accomplished all of the performance, cost, and schedule criteria associated with 'Capability Maturity 0' (CM0) and announced successful completion of the Initial Preliminary Design Review (IPDR). The IPDR is the FCS program's most important technical milestone to date and the largest review of the year. SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With more than 43,000 employees in over 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers' mission-critical functions. SAIC had annual revenues of $7.8 billion for its fiscal year ended January 31, 2006. From saic at vision.moundalexis.com Mon Oct 16 23:25:59 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 16 Oct 2006 19:25:59 -0400 (EDT) Subject: [saic] SAIC: A Company Built to Last Message-ID: <20061016192551.H26528-100000@vision.moundalexis.com> 16 October 2006 ; The Motley Fool SAIC: A Company Built to Last http://msnbc.msn.com/id/15288037/ --- By Tom Taulli SAIC (NYSE: SAI), a systems integration and technical services company, did something rare last week when it raised more than $1 billion in the IPO market. In fact, on its first day of trading, the stock surged from $15 to $18.18. Given the company's strong fundamentals, it looks like investors were not overreacting. Founded 37 years ago, SAIC has actually been making profits every year. Then again, it has a customer base that includes 500 U.S. federal, state, and local agencies. Basically, the company helps these agencies solve major technical challenges in such fields as national security, intelligence, and homeland defense. It counts roughly 9,000 active contracts and a backlog of $16 billion. For example, in terms of national security, SAIC has partnered with Boeing (NYSE: BA) to help with the U.S. Army's Future Combat Systems Program (FCS). The goal is to develop 19 battlefield systems connected with an advanced network, which will monitor military equipment and personnel. The deal has a total contract value of $2.7 billion. Next, the company has a variety of contracts to build intelligence systems, although many of them are classified. One that is not top-secret is the development of sophisticated mapping technologies that will improve the effectiveness of unmanned vehicles, such as the Predator and Dragon Eye. As for homeland security, SAIC helps design systems for emergency response, vulnerability analysis, and infrastructure protection. This includes protection from things like "dirty bombs," chemical agents, and even improvised nuclear devices. True, SAIC has tough competitors such as General Dynamics (NYSE: GD), Accenture (NYSE: ACN), IBM (NYSE: IBM), Computer Sciences Corporation (NYSE: CSC), and Electronic Data Systems (NYSE: EDS). But the company also has significant competitive advantages. Perhaps its most valuable asset is the highly skilled workforce of 43,100. Of these, more than 10,000 have advanced degrees and 1,500 have doctoral degrees. Moreover, 23,000 employees have national security clearances, which are difficult and time-consuming to obtain. In addition, SAIC has plenty of experience with buying companies. During the past ten years, it has purchased 60 firms for an aggregate value of $1.7 billion. In other words, it understands how to integrate companies with skilled personnel and deal with the complex issues of cultural differences. Most importantly, SAIC has strong fundamentals. For the year ended Jan. 31, 2005, the business generated revenues of $4 billion, which was an increase from $3.7 billion. Net income was $927 million. And the growth should continue. After all, SAIC plays in the fertile areas of federal spending: the war on terror, defense transformation (to make the military more effective), intelligence, and homeland defense. Thus, if an investor wants to play these trends, SAIC is a great place to start. From saic at vision.moundalexis.com Mon Oct 16 23:28:28 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 16 Oct 2006 19:28:28 -0400 (EDT) Subject: [saic] SAIC IPO: What it says about tech for years to come Message-ID: <20061016192759.P26528-100000@vision.moundalexis.com> 16 October 2006 ; Blogging Stocks SAIC IPO: What it says about tech for years to come http://www.bloggingstocks.com/2006/10/16/saic-ipo-what-it-says-about-tech-for-years-to-come --- No doubt, SAIC Inc. (NYSE: SAI) had a stunning IPO last week. The stock increased from $15 to $18.18 per share and traded about 50 million shares. Founded 37 years ago, SAIC helps governments solve tough problems such as building technologies for unmanned planes or designing new battlefield networks. In fact, governments outsource billions of dollars in research projects to SAIC. So, what are some of the things the company is working on? Well, you can find out from the company's IPO filing [1]: Advanced Robotics. These are individual robots as well as unmanned vehicles. For example, an unmanned vehicle uses geospatial intelligence to basically get to where it needs to go (and, yes, defeat our enemies). One application: "these robots may be used to search and map terrorist-occupied or earthquake-damaged buildings, as well as track intruders." Wireless Sensors. These are very small wireless sensors called Smart Dust. They basically self-configure according to changes in the environment. Application: "help the U.S. military improve situational awareness, reconnaissance, surveillance and target acquisition capabilities in urban areas." Biopharmaceutical and Medical Research. SAIC is developing nanotechnology technologies to treat cancer, as well as come up with vaccines for HIV, anthrax and malaria. The goal is to establish a huge database called the Biomedical Informatics Grid, which will allow research among 600 experts from over 50 cancer centers. --- [1] http://www.sec.gov/Archives/edgar/data/1336920/000119312506207599/d424b4.htm From saic at vision.moundalexis.com Mon Oct 16 23:31:01 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 16 Oct 2006 19:31:01 -0400 (EDT) Subject: [saic] SAIC shares rise sharply in trading debut; employees get $2.45 billion special dividend Message-ID: <20061016192934.L26528-100000@vision.moundalexis.com> 16 October 2006 ; International Herald Tribune SAIC shares rise sharply in trading debut; employees get $2.45 billion special dividend http://www.iht.com/articles/ap/2006/10/13/business/NA_FIN_COM_US_SAIC_IPO.php --- WASHINGTON Shares of defense services contractor Science Applications International Corp. jumped 20 percent Friday morning in its trading debut. SAIC, one of the largest U.S. employee-owned companies, priced its 75 million share initial public offering at $15 per share, for a total value of $1.125 billion (E0.9 billion). Its underwriters, Morgan Stanley & Co. Inc. and Bear, Stearns & Co. Inc., have the option to buy an additional 11.25 million shares, which would bring the total value of the offering to $1.3 billion. The stock, listed on the New York Stock Exchange under the symbol "SAI," was at $18 in early trading on the New York Stock Exchange. San Diego-based SAIC also said it is paying a $2.45 billion (E1.95 billion) special dividend to its employee owners, funded largely by cash on hand before the offering. The IPO shares are not eligible for the dividend. The company has said cash remaining after the dividend payment and borrowing capacity under its credit facility "will be used for general corporate purposes, including working capital, capital spending, internal growth initiatives and possible investments in, or acquisitions of, complementary businesses, services or technologies," according to a filing last week with the Securities and Exchange Commission. SAIC has been profitable each of its 37 years and performs some of the U.S. government's most sensitive security work. Its competitors represent the Pentagon's top contractors, including Lockheed Martin Corp., General Dynamics Corp., Boeing Co., Northrop Grumman Corp. and Raytheon Co. But unlike the others, the company has been employee-owned since it was founded in 1969. Employees will keep a class of preferred stock with 10 votes per share, compared to one vote per share for the public stock. Chief executive Kenneth Dahlberg, who owns 335,927 shares and joined the company in 2003 from General Dynamics, has said SAIC was going public because it wanted to stop bleeding cash to buy stock. SAIC spent $2.4 billion in the last five years to purchase stock from employees, who can buy and sell shares once every three months at a price determined by a company auditor. Employees have wanted to sell more than buy, prompting SAIC to purchase shares from its workers in what is an otherwise illiquid market. Last year, it disclosed plans to raise up to $1.73 billion in the IPO, but delayed the sale to settle differences with the Greek government over a contract to install a security system for the 2004 Olympic Games. The company has recorded $123 million of losses under the Greek contract as of July 31, according to SEC filings. SAIC, which has more than 43,000 employees, earned $927 million (E738.6 million) on revenue of $7.79 billion (E6.21 billion) in its fiscal year ended Jan. 31. From saic at vision.moundalexis.com Tue Oct 17 20:31:40 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 17 Oct 2006 16:31:40 -0400 (EDT) Subject: [saic] Frost & Sullivan Recognizes SAIC's Scientific Approach to Problem-Solving in the Homeland Security Market Message-ID: <20061017163131.Q26528-100000@vision.moundalexis.com> 17 October 2006 ; Earthtimes.org Frost & Sullivan Recognizes SAIC's Scientific Approach to Problem-Solving in the Homeland Security Market http://www.earthtimes.org/articles/show/news_press_release,5195.shtml --- PALO ALTO, Calif., Oct. 17 -- Frost & Sullivan recently selected Science Applications International Corporation (SAIC) as the recipient of the 2006 Technology Innovation of the Year Award for its advanced and practical solutions in the homeland security market. The company's innovative solutions are applied in port security, assisting first responders, and advanced biological detection capabilities. SAIC is making large strides in developing the next-generation biological detection unit and was one of only three teams selected to advance to phase two of the DHS's Bio Agent Autonomous Networked Detectors (BAND) program. This selection has enabled SAIC to retain its position as a leading designer of advanced biological detection equipment. The biological detection industry has been diligently working on finding a solution to improve today's detection units, and SAIC's use of microarrays and gel electrophoresis cartridges have put the company on the leading edge of this effort. SAIC's VACIS(R) cargo, vehicle and contraband inspection system is one of the most widely used container cargo scanning systems in the world. The system uses a low-level gamma ray radiation source to penetrate vehicles and cargo and then absorb the radiation, which is progressively measured, using an advanced array of detectors. Frost & Sullivan presents its Technology Innovation of the Year Award to a company that has demonstrated technological superiority within its industry. The Award recognizes the ability of the company to successfully develop and introduce new technology, formulate a well-designed product family, and make significant product performance contributions to the industry. Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry. From saic at vision.moundalexis.com Wed Oct 18 23:55:02 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 18 Oct 2006 19:55:02 -0400 (EDT) Subject: [saic] Six Companies Vie for Defense Deals Message-ID: <20061018195450.X26528-100000@vision.moundalexis.com> 18 October 2006 ; Houston Chronicle Six Companies Vie for Defense Deals http://www.chron.com/disp/story.mpl/ap/fn/4268082.html --- WASHINGTON -- Six companies, including defense services contractor Science Applications International Corp., are competing for contracts worth up to $201 million to provide information technology support personnel to the Defense Department's National Geospatial-Intelligence Agency. SAIC, which raised more than $1 billion in its initial public offering last week, said Wednesday it is one of the prime contractors competing for awards under the Support to Management and Resources for Technical Services, or SMARTS, program. The program, which started July 1, is designed to provide access to a large pool of support personnel with security clearances "who provide Web design services, management consultation, financial and management-related support, and program and project activity support" according to the Bethesda, Md.-based agency, which collects and analyzes data to support military and sector security operations. Other awarded contracts include Booz Allen Hamilton Inc., BAE Systems and CACI International Inc. A National Geospatial-Intelligence Agency spokeswoman on Wednesday said 23 SMARTS task orders with a life cycle contract value of about $68.7 million were awarded since July. An SAIC spokeswoman said there were no program delays and that the contract announcement was made months after similar ones because that was where it fell in the company's workload. Shares of SAIC dipped 16 cents to $17.81 in afternoon trading on the New York Stock Exchange, while CACI added 14 cents at $58.04. From saic at vision.moundalexis.com Wed Oct 18 23:56:53 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 18 Oct 2006 19:56:53 -0400 (EDT) Subject: [saic] SAIC Awarded SMARTS Contract From National Geospatial-Intelligence Agency Message-ID: <20061018195646.S26528-100000@vision.moundalexis.com> 18 October 2006 ; Yahoo (PR Newswire) SAIC Awarded SMARTS Contract From National Geospatial-Intelligence Agency http://biz.yahoo.com/prnews/061018/dcw007.html?.v=72 --- SAN DIEGO and MCLEAN, Va., Oct. 18 /PRNewswire-FirstCall/ -- Science Applications International Corporation (SAIC) (NYSE: SAI) today announced that it has been awarded the Support to Management and Resources for Technical Services (SMARTS) contract by the National Geospatial-Intelligence Agency (NGA). SAIC was one of six prime contractors to receive an indefinite- delivery/indefinite-quantity contract, with a base period of performance equal to one year, and four one-year options. The SMARTS program is designed to provide access to a large pool of appropriately cleared support personnel who will assist with Web design services, management consultation, financial and management related support, program and project activity support, and other support/management services. "This contract affords SAIC an important opportunity to assist the NGA in performing a wide-range of mission activities that are of critical importance to the nation's global war on terrorism," said K. Stuart Shea, SAIC senior vice president and general manager of the Space and Geospatial-Intelligence Business Unit. "This work is on the leading edge of important new technologies. SAIC is proud of its longstanding support to NGA and its predecessor organizations." About NGA NGA is a Department of Defense combat support agency and a member of the intelligence community. Its vital mission is to provide timely, relevant and accurate geospatial intelligence in support of national security. The agency is headquartered in Bethesda, Md., with major facilities in the Washington, D.C., northern Virginia and St Louis, Mo. areas. NGA deploys support teams worldwide. From saic at vision.moundalexis.com Fri Oct 20 02:47:56 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Thu, 19 Oct 2006 22:47:56 -0400 (EDT) Subject: [saic] SAIC, Inc. Announces Closing of Initial Public Offering Message-ID: <20061019224746.K26528-100000@vision.moundalexis.com> 19 October 2006 ; Yahoo (PR Newswire) SAIC, Inc. Announces Closing of Initial Public Offering http://biz.yahoo.com/prnews/061019/dcth056.html?.v=59 --- Underwriters Exercise Over-Allotment Option in Full SAN DIEGO and MCLEAN, Va., Oct. 19 /PRNewswire-FirstCall/ -- SAIC, Inc. (NYSE: SAI) announced the closing of its initial public offering on October 17, 2006 of 86,250,000 shares of common stock, which includes the exercise of the underwriters' over-allotment option to purchase 11,250,000 shares. The offering was priced at $15.00 per share and resulted in net proceeds to SAIC of approximately $1,245,000,000, after deducting underwriting commissions and discounts, but before other offering-related expenses. Morgan Stanley & Co. Incorporated and Bear, Stearns & Co. Inc. served as joint book-running managers for the offering. SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With more than 43,000 employees in over 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers' mission-critical functions. SAIC had annual revenues of $7.8 billion for its fiscal year ended January 31, 2006. From saic at vision.moundalexis.com Fri Oct 20 11:48:37 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Fri, 20 Oct 2006 07:48:37 -0400 (EDT) Subject: [saic] The Future Combat System Videogame for the PC Message-ID: <20061020074830.A26528-100000@vision.moundalexis.com> 20 October 2006 ; Gizmag The Future Combat System Videogame for the PC http://www.gizmag.com/go/6360/ --- October 20, 2006 Science Applications International Corporation (SAIC) is not your run-of-the-mill video game developer -- a massive corporation providing scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the U.S. Department of Defense (DoD), the intelligence community, the U.S. Department of Homeland Security (DHS) and other U.S. Government civil agencies, as well as to customers in selected commercial markets. Now it has created a videogame [1]: Future Force Company Commander (F2C2) [2] was designed by the company's Tactical Systems and Solutions Business Unit to help demonstrate the networked battle command that the Future Combat Systems (FCS) program is developing for the U.S. Army. It's not the first time [3] the American military has used video games to capture the hearts and minds of America's high-tech youth. F2C2 is a real-time tactical strategy game that allows the player to learn about the Army's FCS program by assuming command of a Mounted Company Team in the year 2015. Through game play, F2C2 showcases how FCS can provide the 21st century soldier unprecedented situational awareness, and the ability to see first, understand first, act first and finish decisively. [Image] http://www.gizmag.com/pictures/hero/6360_20100631608.jpg Screenshot of game, w/ 5 more images: http://www.gizmag.com/go/6360/gallery/ "SAIC's F2C2 [4] videogame demonstrates the FCS network-centric architecture that is being designed to seamlessly link advanced communications and networking systems with soldiers, platforms, weapons, and sensors," said John Gully, SAIC senior vice president and general manager of the Tactical Systems and Solutions Business Unit. F2C2 currently is featured on the U.S. Army's public Web site: (http://www.army.mil/fcs/f2c2) where it can be downloaded for free. SAIC recently exhibited F2C2 at the Congressional Modeling and Simulation Caucus held in July 2006 in Washington D.C. The videogame also was presented at the Infantry Warfighting Conference, September 12 at Ft. Benning, Ga., and the Association of the U.S. Army's Annual Meeting and Exposition, October 9 in Washington, D.C. SAIC with its teammate Boeing, is the lead systems integrator on the FCS contract. The company is executing on the project, which is currently in the system development and demonstration phase. Last year the FCS team was evaluated at 100 percent when it completed its System of Systems Functional Review. In August 2006 the One Team successfully accomplished all of the performance, cost, and schedule criteria associated with 'Capability Maturity 0' (CM0) and announced successful completion of the Initial Preliminary Design Review (IPDR). The IPDR is the FCS program's most important technical milestone to date and the largest review of the year. --- [1] http://www.saic.com/products/simulation/f2c2/f2c2-tech.html [2] http://www.saic.com/products/simulation/f2c2/ [3] http://www.gizmag.com/go/3762/ [4] http://www.army.mil/fcs/f2c2 From saic at vision.moundalexis.com Sun Oct 22 20:29:05 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 22 Oct 2006 16:29:05 -0400 (EDT) Subject: [saic] Defense Contractor SAIC Lands on Radar Screen With Successful IPO Message-ID: <20061022162857.N26528-100000@vision.moundalexis.com> 22 October 2006 ; San Diego Business Journal Defense Contractor SAIC Lands on Radar Screen With Successful IPO http://www.sdbj.com/industry_article.asp?aID=43582916.8298914.1381614.7385174.2298635.541&aID2=106269 --- Defense-Engineering Firm Boasts Huge $16 Billion Backlog By MIKE ALLEN San Diego Business Journal Staff Kevin Carroll of the AeA said SAIC Inc.'s public stock offering gives the business a much higher profile in the community. After an initial surge, shares of SAIC Inc., a San Diego defense-engineering firm, lost steam last week. But the initial public offering -- delayed until Oct. 13 -- was still viewed as a success by analysts. "They're at the right spot at the right time, and have a great reputation," said Alex Hamilton, an analyst with Benchmark Co. LLC in New York. "If you're a long-term value investor, it might not be a bad place to get in." After 37 years as an employee-owned firm, SAIC decided last year that it would go public to provide liquidity to shareholders, all of whom are employees. By issuing $75 million in stock, the company opened equity ownership to any investor willing to pony up the market price, or about late last week around $17.31. At that price, SAIC Inc., now trading on the New York Stock Exchange under the ticker SAI, had a market capitalization of about $7 billion, the third largest among local public companies. Wireless telecom Qualcomm Inc. is the largest in market cap at more than $60 billion, and Sempra Energy is second at about $13 billion. The IPO issue price of $15, at the high end of the deal, raised more than $1 billion. A New SAIC SAIC's ownership was forever changed by the public offering, but because of the way the IPO was structured (with existing shareholders receiving two shares of common stock plus a special dividend for each share they owned), 80 percent remains in the hands employees. The biggest change will be the firm's heightened awareness in the public arena, said Kevin Carroll, executive director of the San Diego Council of AeA, a technology trade association. "It's going to become a different SAIC than we're used to seeing. The community is going to know more about SAIC than they have in the past," Carroll said. One salient fact that has been known about SAIC for several years is rapid growth in picking up lots of new business from defense contracts. A provider of information technology and other engineering services to many branches of the federal government, primarily the Department of Defense, SAIC's compounded growth rate from 2002 to 2006 was 15.5 percent. For the fiscal year ended Jan. 31, SAIC had net income of $927,000 on revenue of $7.8 billion. That compares with net income of $409,000 on $7.2 billion for the 2005 fiscal year. As of July 31, it had about 9,000 active contracts and a work backlog of $16 billion, according to the firm's proxy statement. The U.S. government accounted for 89 percent of SAIC's workload last year. Given the funding from Congress to combat terrorism, SAIC revenues should continue upward. "It's one of the best defense companies in terms of its diversity, its size, skill sets, and critical mass," Hamilton said. Hold On Despite those accolades, Hamilton rates SAI as a hold, meaning it's a fairly valued stock now, but not necessarily a bargain. While many say going public has been long overdue, others warn by doing so, the employee owned and operated culture established by founder Robert Beyster in 1969 is forever gone. Because of the shift to a public company, some longtime employees may not adapt to the changes and decide to leave, Hamilton said. This could prompt some valuable employees to leave. "I don't think there's going to be a rush for the door, but over time, there could be," he said. "Down the road, departures could become substantial." SAIC has 43,100 full- and part-time employees. In its headquarters of San Diego, SAIC (formerly called Science Applications International Corp.) employs some 4,600 employees in some 11 buildings totaling more than 1.3 million square feet. From saic at vision.moundalexis.com Wed Oct 25 02:45:14 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 24 Oct 2006 22:45:14 -0400 (EDT) Subject: [saic] Bear Wagner Specialists LLC Selected by SAIC to Trade Shares on NYSE Message-ID: <20061024224507.E26528-100000@vision.moundalexis.com> 24 October 2006 ; Business Wire Bear Wagner Specialists LLC Selected by SAIC to Trade Shares on NYSE http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20061024005186&newsLang=en --- NEW YORK--(BUSINESS WIRE)--Bear Wagner Specialists LLC today announced that it was selected by SAIC, Inc. (NYSE:SAI) to trade SAIC's shares of common stock on the New York Stock Exchange. A leading provider of scientific, engineering, systems integration and technical services and solutions to various governmental and corporate markets, SAIC began trading on October 13, raising approximately $1.3 billion in gross proceeds for the company. "SAIC is a prestigious addition to the growing list of quality companies traded by our team of highly experienced specialists," said Peter Murphy, chief executive officer of Bear Wagner Specialists. "At Bear Wagner, we strive to be the specialist of choice by providing our clients unparalleled service and trading expertise." Bear, Stearns & Co. Inc. served as a joint book-running manager on the initial public offering for SAIC, Inc. From saic at vision.moundalexis.com Wed Oct 25 02:46:16 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 24 Oct 2006 22:46:16 -0400 (EDT) Subject: [saic] Air Force Awards SAIC $25M Contract Message-ID: <20061024224609.J26528-100000@vision.moundalexis.com> 24 October 2006 ; MSN Money (AP) Air Force Awards SAIC $25M Contract http://moneycentral.msn.com/inc/news/providerredir.asp?feed=AP&Date=20061024&ID=6087258 --- SAN DIEGO and McLEAN, VA. (AP) - Science Applications International Corp. Tuesday received a nearly $25 million contract from the U.S. Air Force to develop an infrared satellite system. The SAIC contract will supply an alternative satellite system to the Air Force Research Laboratory and Space Vehicles Directorate for its Risk Reduction-AIRSS program. Work will be performed in San Diego and Seal Beach, Calif., and Albuquerque, N.M. The deal has a 29-month performance period. Shares of SAIC rose 13 cents to $17.92 on the New York Stock Exchange in intraday trading. SAIC went public on Oct. 19 at $15 a share. From saic at vision.moundalexis.com Wed Oct 25 11:25:23 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 25 Oct 2006 07:25:23 -0400 (EDT) Subject: [saic] Future Combat Systems Team Opens Field Test Center in New Mexico Message-ID: <20061025072515.O26528-100000@vision.moundalexis.com> 25 October 2006 ; Nieuwsbank Future Combat Systems Team Opens Field Test Center in New Mexico http://www.nieuwsbank.nl/en/2006/10/25/F015.htm --- ST. LOUIS, Oct. 24, 2006 -- The Boeing Company and partner Science Applications International Corporation (SAIC), as the Lead Systems Integrator for the U.S. Army's Future Combat Systems (FCS) program, yesterday celebrated the opening of the Army's Test Operation Complex at White Sands Missile Range (WSMR), N.M. The complex will support experimentation, test, training and integration activities for the Army's Evaluation Brigade Combat Team (EBCT) -- a unit tasked with testing and evaluating FCS technologies as they come online beginning in 2008. "Yesterday's event emphasizes the transition from concept to reality, as the Army, LSI and industry partners come together in support of critical testing to field FCS; and is indicative of the Army's commitment to the program," said Dennis Muilenburg, vice president-general manager, Boeing Combat Systems, and program manager, FCS. "Continuing to build on our close relationship with the Army, the LSI and our partners stand ready to support the testing and fielding of FCS technologies, which will enable our nation's soldiers to conduct their missions more effectively and safely." The opening of the Test Operation Complex represents the formal kick-off of the supporting capability for the EBCT. It is another in a series of milestones designed to ensure a seamless transition for the soldiers in the unit as they begin evaluating and operating the networked system of manned and unmanned ground and air vehicles and sensors that comprise FCS. The mission of the EBCT, comprising 947 soldiers initially but expected to grow to more than 3,000 soldiers by 2014, will be to evaluate all FCS systems as they mature in preparation for fielding, with an initial focus on the systems and technology slated for accelerated delivery to the current force. These technologies include initial networking capabilities, Unattended Ground Sensors, the Non-Line-of-Sight -- Launch System and the Intelligent Munitions System, which are intended to fill existing capability gaps and enhance the effectiveness and survivability of current troops. In February 2006, the LSI opened a regional office in El Paso, Texas, and pre-positioned a small core team of technical support personnel on post at WSMR and Fort Bliss, Texas to support Army activities. The team is working closely with the U.S. Army Training and Doctrine Command's Future Force Integration Directorate, which is responsible for coordinating, synchronizing and supporting the execution of the FCS family of systems, and for facilitating the stand-up and evolution of the EBCT. The number of industry personnel has since grown to more than 30 individuals who are assisting the Army with fielding support, force development planning, test support and soldier training. Additionally, more than 125 engineers are temporarily residing in the region, supporting FCS experimentation activities, which are currently under way at the WSMR/Fort Bliss complex. Soldiers and leaders in the EBCT will build on lessons learned during Experiment 1.1, a three-phased event led by the LSI in partnership with the Army and best-of-industry team. This experiment combines laboratory experiments with field exercises where soldiers will have an opportunity to use early versions of FCS systems and work with initial doctrinal concepts. Phase 1 of the experiment, completed in September, was a laboratory-based event conducted at the System of Systems Laboratory in Huntington Beach, Calif., that focused on hardware and software integration and systems interoperability. Phase 2, which runs from September to December, involves gathering data and assessing systems performance while operating in a realistic environment at the WSMR/Fort Bliss combined range complex, with soldiers on hand for observation. Phase 3, scheduled for January to February 2007, builds upon the engineering work of the previous lab and field experiment phases by demonstrating that FCS systems, integrated with various other Army systems, are developing at their target maturity levels. Experiment 1.1, Phase 3 will be the first time these integrated systems will be used by soldiers in an operational framework over a real terrain. Early hands-on feedback from soldiers will be incorporated back into the FCS program in preparation for the early delivery of the first FCS technologies to the current force in 2008. From saic at vision.moundalexis.com Wed Oct 25 20:47:25 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 25 Oct 2006 16:47:25 -0400 (EDT) Subject: [saic] Air Force awards SAIC infrared contract Message-ID: <20061025164715.O26528-100000@vision.moundalexis.com> 25 October 2006 ; Federal Computer Week Air Force awards SAIC infrared contract http://www.fcw.com/article96571-10-24-06-Web --- BY David Hubler The Air Force Research Laboratory and Space Vehicles Directorate has awarded Science Applications International Corp., a cost-plus-award-fee contract worth about $25 million in a 29-month period for space-based imaging technology. SAIC said in a statement that it will provide the AFRL/VS' Risk Reduction-Alternative Infrared Satellite System program with system engineering; optics and electronics hardware and software design and development; engineering integration; and environmental, performance and acceptance testing. As part of the process, SAIC will build and test an infrared sensor assembly for use in space and integrate infrared focal plane arrays and readout electronics. The company will also process data for the Air Force's missile warning and defense missions. "SAIC has a 30-year heritage in space hardware development, designing and fielding successful, on-orbit electro-optical, infrared space payloads using commercial.and state-of-the-art components," said Charles Gilman, SAIC vice president and operations manager in the Research, Development, Test and Evaluation Group, in the statement. "Through this contract, we can help our customer respond to critical, real-world missions." About 75 percent of SAIC's team members are small businesses. "As a result, the SAIC team will be providing AFRL with technical expertise, while at the same time, continuing to support government small-business participation goals," according to the statement, which does not name the SAIC partners. From saic at vision.moundalexis.com Thu Oct 26 02:34:23 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Wed, 25 Oct 2006 22:34:23 -0400 (EDT) Subject: [saic] SAIC awarded radiological detection contract Message-ID: <20061025223401.G26528-100000@vision.moundalexis.com> 25 October 2006 ; San Diego Union-Tribune SAIC awarded radiological detection contract http://www.signonsandiego.com/news/nation/terror/20061025-1457-cnssaic.html --- By Joe Cantlupe COPLEY NEWS SERVICE WASHINGTON -- The government may be tired of cat litter being mistaken for "dirty bombs." Hoping to improve its detection of radiological materials at the nation's ports of entry, the Department of Homeland Security on Wednesday announced contracts totaling $113 million for five companies, including Science Applications International Corp. in San Diego, to develop better devices. Currently, there are more than 14,000 handheld devices being used at the nation's ports by U.S. Customs and Border Protection officers who screen cargo to identify radiological material. They are looking for things like dirty bombs, which are conventional explosives packed with radioactive material. "These next-generation handheld devices will bring an even faster and more reliable means to detecting and identifying materials at our ports," said Vayl S. Oxford, director of the Domestic Nuclear Detection Office. But Homeland Security officials declined to say when the devices will be ready for use. The new devices -- part of the Human Portable Radiation Detection System program -- "are part of a robust global nuclear detection architecture built for the most consequential threats to the homeland," Oxford said. Sometimes, existing radiation detection devices have flawed results. Cat litter and medical devices have set off false alarms at the Mexican border crossing at San Ysidro and other entry points, officials said. Christopher Kelly, a spokesman for the Department's Nuclear Detection Office, said officials will continue to "pursue new radiation detector technologies that would improve the probability of detection and identification of nuclear explosive devices, fissile material, and radiological material intended for illicit use." Kelly declined to give a timetable for developing and deploying the new devices. "A plan is in place and not yet being disclosed," Kelly said. Federal officials also refused to reveal a breakdown of the $113 million in contracts. SAIC officials could not be reached for comment. Besides SAIC, the other companies awarded contracts are Ametec AMT of Oak Ridge, Tenn; Sanmina-SCI of Huntsville, Ala.; Target Instruments Inc. of Oak Ridge, Tenn.; and Smith Detection Inc. of Pine Brook, N.J. From saic at vision.moundalexis.com Thu Oct 26 11:39:58 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Thu, 26 Oct 2006 07:39:58 -0400 (EDT) Subject: [saic] SAIC Partakes of Nuclear Detection Deal Message-ID: <20061026073949.U26528-100000@vision.moundalexis.com> 26 October 2006 ; San Diego Business Journal SAIC Partakes of Nuclear Detection Deal http://www.sdbj.com/article.asp?aID=27400215.697153.1383512.8493789.5093394.617&aID2=106415 --- The U.S. Department of Homeland Security's Domestic Nuclear Detection Office has awarded $113 million in contracts for human portable radiation detection systems. The money will be spread among five companies, including San Diego's SAIC Inc., the federal agency announced Oct. 25. A spokesman said SAIC's pressroom has no immediate information or comment on the contract award. The four other companies mentioned by the federal office are Sanmina-SCI Corp. of Huntsville, Ala., Ametec AMT and Target Instruments Inc., both of Oak Ridge, Tenn., and Smiths Detection Inc. of Pine Brook, N.J. In a release, the federal nuclear detection office said it plans to purchase and deploy about 1,000 hand-held systems and 200 backpack systems through the program. The office did not specify where these hand-held systems would go. "The portable technology will be used primarily by the U.S. Customs and Border Protection officers for secondary screening of cargo to identify and localize radiological material after a primary alarm has been triggered," said a statement from the federal office. A spokeswoman for the San Diego Unified Port District said she did not know if the port security deals listed by the DNDO will involve the ports of San Diego or not. -- Amy Yarnall From saic at vision.moundalexis.com Fri Oct 27 02:32:22 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Thu, 26 Oct 2006 22:32:22 -0400 (EDT) Subject: [saic] SAIC Wins $250 Million Army Corps Deal Message-ID: <20061026223140.P26528-100000@vision.moundalexis.com> 26 October 2006 ; Houston Chronicle SAIC Wins $250 Million Army Corps Deal http://www.chron.com/disp/story.mpl/ap/fn/4290916.html --- SAN DIEGO -- Defense services contractor Science Applications International Corp. on Thursday said it won a contract worth up to $250 million from the U.S. Army Corps of Engineers to provide engineering services for the U.S. Army Engineer Research and Development Center's Topographic Engineering Center at Fort Belvoir, Va. SAIC will provide a variety of services including: sensor research and development, verification and validation, support of geospatial systems, demonstrations and experimentation, and operational support. The award has a one-year base term with four one-year options. Shares of SAIC added 17 cents in after-hours trading on the INET electronic stock exchange, after gaining $1.24, or about 6.9 percent, to end at $19.31 on the New York Stock Exchange. From saic at vision.moundalexis.com Fri Oct 27 20:53:08 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Fri, 27 Oct 2006 16:53:08 -0400 (EDT) Subject: [saic] SAIC wins Army engineering contract worth up to $250M Message-ID: <20061027165301.L26528-100000@vision.moundalexis.com> 27 October 2006 ; Washington Business Journal SAIC wins Army engineering contract worth up to $250M http://washington.bizjournals.com/washington/stories/2006/10/23/daily67.html --- SAIC has received a contract with a potential value of up to $250 million from the U.S. Army Corps of Engineers to provide engineering services and geospatial support. The government contractor, which is based in San Diego and has thousands of workers throughout the Washington area, will provide the support to the Army Engineer Research and Development Center's topographic engineering facility. The contract has a one-year base term and four one-year options. SAIC's research, development, test and evaluation group and its intelligence and security group will support high-resolution geospatial information and geospatial intelligence technologies, systems and products. The company will provide a broad range of services including sensor research and development, verification and validation, integration and testing, support of geospatial systems, systems engineering, demonstrations and experimentation and other operations. SAIC (NYSE: SAI), which recently went public, raising more than $1 billion, is a provider of scientific, engineering, systems integration and technical services primarily to the government as well as some commercial customers. From saic at vision.moundalexis.com Fri Oct 27 20:54:32 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Fri, 27 Oct 2006 16:54:32 -0400 (EDT) Subject: [saic] BMD Focus: USAF seeks SBIRS alternatives Message-ID: <20061027165401.S26528-100000@vision.moundalexis.com> 27 October 2006 ; United Press International BMD Focus: USAF seeks SBIRS alternatives http://www.upi.com/SecurityTerrorism/view.php?StoryID=20061025-111454-8069r --- By MARTIN SIEFF UPI Senior News Analyst WASHINGTON, Oct. 26 (UPI) -- It looks like curtains for SBIRS. The U.S. Air Force is looking for space-systems to detect missile launches. The U.S. Air Force has awarded contracts to the Raytheon Company and to the Science Applications International Corporation to develop new infrared satellite detection systems that could carry out the mission SBIRS, the Space Based Infrared System, was supposed to. SAIC announced Tuesday that it had won a new $25 million contract from the U.S. Air Force to develop a new infrared satellite system for the U.S. Air Force Research Laboratory and Space Vehicles Directorate for its Risk Reduction, or AIRSS, program. "Under this contract, SAIC will supply a qualification model payload to AFRL/VS for their Risk Reduction-AIRSS program including system engineering; optics and electronics hardware design and development; software design and development; engineering integration; and environmental, performance and acceptance testing," the company said. "Work will be performed primarily in San Diego and Seal Beach, Calif., and Albuquerque, N.M." SAIC said its engineers would "design, build, integrate and test an innovative infrared (IR) sensor assembly for space applications, and integrate the latest IR focal plane arrays, and readout electronics. They also will process data relevant to the Air Force's missile warning and missile defense missions." "SAIC has a 30-year heritage in space hardware development, designing and fielding successful, on-orbit electro-optical, infrared space payloads using commercial-off-the-shelf and state-of-the-art components," said Charles Gilman, SAIC vice president and operations manager in the Research, Development, Test and Evaluation Group. "Through this contract, we can help our customer respond to critical, real-world missions." Earlier this month, Defense Industry Daily reported that the U.S. Air Force Research Laboratory at Kirtland Air Force Base, N.M., has awarded a contract to the Raytheon company to explore the possibility of developing what it calls "a full-earth sharing sensor assembly." The Air Force Research Laboratory "has issued contracts to investigate and demonstrate, via hardware test and evaluation, the viability of a full-earth sharing sensor assembly to meet the threshold missile warning and defense objectives of the Defense Satellite Program/ Space Based Infrared Surveillance (DSP/SBIRS) High Systems. It will also provide performance data that can be used by the government to assess the risk of this approach for future alternative infrared satellite system engineering and manufacturing design programs." In an Oct. 16 press statement Raytheon said: "The Alternate Infrared Satellite System program, as it is known, calls for Raytheon Space and Airborne Systems to design and build a developmental integrated sensor assembly for the Air Force Space and Missile Systems Center. "The Air Force is seeking to develop a solution with lower cost and risk than the geosynchronous missile warning satellite in parallel development by another contractor for the third Space Based Infrared System," Raytheon said. "The program takes advantage of a single full-earth staring instrument to look for infrared plumes and provide early warning of ballistic missile launches," said Brian Arnold, vice president for Strategic Systems. "The lack of moving parts allows for a lighter, more affordable payload and fewer opportunities for component failure, while the non-moving, wide-angle infrared optics capture the earth's surface at high fidelity." The large focal plane array "also will allow the warfighter to detect infrared events of brief duration, such as the activity of short-range theater missiles," Raytheon said. Raytheon said the USAF was expected to make a decision in 2008 about whether to proceed with SBIRS or with Raytheon's proposed AISS program. "Expected in 2008, a decision to produce either system will depend on the developmental success of the geosynchronous satellites and the maturity of the technology demonstrated by the Alternative Infrared Satellite System, according to the Air Force," the company said. Significantly, Raytheon described its own program as following "the back-to-basics approach directed by Dr. Ronald Sega, undersecretary of the Air Force." "Back to basics" has become the motto, or mantra, of U.S. Missile Defense Agency engineers and analysts led by MDA director Lt. Gen., Henry "Trey" Obering as they reallocate their resources to focus on ballistic missile defense programs that are most likely to become operational and effective in the foreseeable future, while pulling the plug on more speculative programs, or those that have not been delivering what they were supposed to. "The fast-paced program is scheduled to complete critical design review next spring and deliver hardware a year later," Raytheon said. UPI Watch has monitored the growing problems of the SBIRS program over the past 18 months. Defense Industry Daily noted on Oct. 17 that the SBIRS program has been characterized by "massive cost overruns, technical challenges that continue to present problems, and uncertain performance." However, DID continued, "their mission -- to detect ballistic missile launches and so serve as the critical first stage of the USA's national early warning system -- is too critical to abandon. What to do?" Back on Jan. 16, DID noted that "Lockheed Martin has delivered the sensors for the classified satellites, and the payload for the first dedicated satellite is in thermal vacuum testing." However, DID continued, "the Lockheed program has had more than its share of difficulties. Its costs grew from $4 billion to $11-12 billion, and the launch date slipped from 2002 to 2009." The SAIC and Raytheon contracts suggest the Air Force is serious about looking for alternatives to the long-delayed and costly SBIRS program. From saic at vision.moundalexis.com Fri Oct 27 20:55:54 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Fri, 27 Oct 2006 16:55:54 -0400 (EDT) Subject: [saic] Army Corps engineering support will come from SAIC Message-ID: <20061027165545.A26528-100000@vision.moundalexis.com> 27 October 2006 ; Washington Technology Army Corps engineering support will come from SAIC http://www.washingtontechnology.com/news/1_1/daily_news/29589-1.html --- By Roseanne Gerin Staff Writer Science Applications International Corp. won a five-year, $250 million prime contract to furnish engineering services and geospatial support for the Army Corps of Engineers' Research and Development Center -- Topographic Engineering Center. Under the Geospatial Research, Integration, Development and Support contract, SAIC will perform sensor research and development and complete demonstrations in advanced concept and joint capability technologies. It also will support operations across different areas, including topographic engineering, military intelligence, battle command and modeling and simulation. SAIC of San Diego is a research and engineering company with more than 43,000 employees. It had an annual revenue of $7.8 billion for the fiscal year ended Jan. 31. The company ranks No. 3 [1] on Washington Technology's 2006 Top 100 [2] list of federal prime contractors, ranked according to their IT revenue. --- [1] http://www.washingtontechnology.com/top-100/2006/3.html [2] http://www.washingtontechnology.com/top-100/2006/ From saic at vision.moundalexis.com Sun Oct 29 23:01:30 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Sun, 29 Oct 2006 18:01:30 -0500 (EST) Subject: [saic] A Celebration of Kaj Tesink Message-ID: <20061029180119.O26528-100000@vision.moundalexis.com> 29 October 2006 ; Dave Piscitello's Personal Journal A Celebration of Kaj Tesink http://hhi.corecom.com/arc20061001.htm#BlogID563 --- On Wednesday, October 25th 2006, Kaj Tesink of SAIC/Telcordia died following a long and hard-fought battle against pancreatic cancer. The Internet and international communities lost a valued and energetic contributor to telecommunications and Internet standards. I lost as dear a friend as I could ever hope to have. To the Internet community, Kaj leaves a legacy of enthusiastic and *constructive* participation. He also leaves his mark in 15 RFCs. [1] Kaj published numerous articles in telecom and Internet journals and trade publications, and co-authored, with colleague Bob Klessig, a fine book on a pre-ATM broadband access technology, SMDS. To his friends, Kaj leaves a wealth of happy and bittersweet memories. Kaj was more soft-spoken than outspoken, but rarely one to concede an argument without thoughtful deliberation. Kaj was as analytical a personality style as you'd ever expect to meet. He was also kind, thoughtful, and generous, never realizing he was "paying it forward". When Kaj was diagnosed with pancreatic cancer over a year ago, Friends of Kaj appeared seemingly out of nowhere to lend support, comfort and to help Kaj and his wife Elysia use the time he had to their maximum enjoyment. Kaj loved board games, especially backgammon and cribbage; playing the latter, he was uncharacteristically competitive. Kaj would tell you he beat me in these games more often than not. I'd argue otherwise. The truth is lies in the middle. Nibbling on Dutch licorice was mandatory for these activities. Although I have not enjoyed that treat for many years, I know I will always think of my friend whenever the scent of licorice is present. Born with Marfan's syndrome, Kaj never enjoyed the luxury of an entirely healthy life, yet he enjoyed biking, hiking, and other outdoor activities. A native of Holland, he led a lifestyle most Americans would consider traditionally European. He immersed himself in books more than television. He read newspapers, listened to BBC, and was better informed of international politics than most Americans are of their home town news. Kaj is survived by his younger brother Winifred and his wife and soul mate, Elysia. I had the good fortune of serving as Kaj's best man when he and Elysia married. I recall I wished them a long and happy life together and ended the toast with "cient anni", a traditional Italian blessing that wishes the couple "100 years" of happiness together. I take comfort that part of my blessing came true. While their time together was too short, it was richly lived. Kaj was never happier than when he was with Elysia, and the feeling was mutual. Elysia was as resolute, resourceful, and completely committed a partner as any of us should hope to have when crisis and tragedy strike. Sadly, we live in a time when barely half of all married couples are willing to try to resolve the most trivial matters. Elysia serves as a role model of everything we promise when we say "in sickness and in health". Elysia asked that donations be made in Kaj's name to the Nature Conservancy (the international branch). If you are so inclined, visit http://www.nature.org and make a donation in his name. --- [1] http://www.arkko.com/tools/rfcstats/kajtesink.html From saic at vision.moundalexis.com Mon Oct 30 21:44:01 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 30 Oct 2006 16:44:01 -0500 (EST) Subject: [saic] SAIC Names Pat Simon Information Operations Program Executive for Operational Intelligence Solutions Business Unit Message-ID: <20061030164352.X26528-100000@vision.moundalexis.com> 30 October 2006 ; Earthtimes.org SAIC Names Pat Simon Information Operations Program Executive for Operational Intelligence Solutions Business Unit http://www.earthtimes.org/articles/show/news_press_release,12478.shtml --- Simon has more than 26 years of military experience and over ten years of senior level Information Operations (IO) experience, most recently performing duties as the senior officer on the Army staff responsible for Information Operations and senior advisor to the deputy chief of staff for Operations for the United States Army. In this role, Simon was responsible for establishing the Army's IO strategy and policy portfolio, as well as oversight of its execution. Previously, Simon served as chief, Information Operations, Multi-National Forces - Iraq from 2004 to 2005, and chief, Information Operations, Combined Forces Land Component Commander, Kuwait and Iraq in 2003. "We are extremely fortunate to have an IO practitioner of Pat Simon's caliber join our team to lead our support efforts to the military IO community," said John Thomas, SAIC senior vice president and general manager of the Operational Intelligence Solutions Business Unit in the Intelligence and Security Group. "SAIC is working on a number of IO projects supporting military customers, including Army IO. Pat's extensive knowledge in these areas will be important to the nation and the Army." Previously in his career, Simon led a number of high-visibility programs in information operations, strategic communications, information technology, space operations, air defense operations, and support to homeland security. Simon received his bachelor's degree from the University of Tampa and a Master of Arts degree from Webster University in St. Louis. He also is a Senior Service College graduate. SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With more than 43,000 employees in over 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers' mission-critical functions. SAIC had annual revenues of $7.8 billion for its fiscal year ended January 31, 2006. From saic at vision.moundalexis.com Mon Oct 30 21:46:15 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 30 Oct 2006 16:46:15 -0500 (EST) Subject: [saic] SAIC Subsidiary Wins $11M Contract Message-ID: <20061030164609.I26528-100000@vision.moundalexis.com> 30 October 2006 ; Houston Chronicle SAIC Subsidiary Wins $11M Contract http://www.chron.com/disp/story.mpl/ap/fn/4297039.html --- SAN DIEGO -- Defense services contractor Science Applications International Corp. said Monday that one of its subsidiaries had won a four-year, $11 million contract to continue development, operations and maintenance of the San Francisco Bay Area's 511 Regional Transit Information System. The Metropolitan Transportation Commission, which is a nine-county transportation planning, coordinating and financing agency, awarded the pact to bd Systems Inc. The time and materials contract continues nine years of company work on the system, which consolidates information for over 30 Bay Area transit service providers on the 511 Transit Web site. Shares of SAIC rose 17 cents to $20.24 on the New York Stock Exchange. From saic at vision.moundalexis.com Mon Oct 30 22:01:04 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 30 Oct 2006 17:01:04 -0500 (EST) Subject: [saic] SAIC's Computer Game Is a Fun Training Ground for Army Battles Message-ID: <20061030165907.F26528-100000@vision.moundalexis.com> 30 October 2006 ; San Diego Business Journal SAIC's Computer Game Is a Fun Training Ground for Army Battles http://www.sdbj.com/article.asp?aID=106556&link=perm --- Players Experience Simulated Wartime Conditions That Link Soldiers to Network Image [1] Caption: A mini-cockpit demonstrator of SAIC Inc.'s video game Future Force Company Commander was set up at the Association of the U.S. Army show last year in Washington D.C. BY MARTY GRAHAM It's an exciting video game -- Future Force Company Commander puts the player in control of 18 weapons systems, an encyclopedia of battlefield information and an army of manned and unmanned tools. Sleek tanks roll on night missions, analyzing information about enemy positions and movements sent by unmanned probes on the ground and flying in the sky. The strategies are sophisticated and the weapons simulate battle conditions. And it's real. SAIC Inc.'s Future Force Company Commander game -- 24,000 copies have been given away -- is a sample of what SAIC (formerly known as Science Applications International Corp.) really does. Partnered with the Chicago-based Boeing Co., San Diego-based SAIC is the lead integrator of the U.S. Army's network centric warfare of the future. SAIC is one of about a dozen San Diego-area defense contractors thriving on the Army's net-centric warfare concept that links communications and networking systems with soldiers, platforms, weapons and sensors. Introduced several years ago, and evolving with the lessons learned in Iraq -- a ground war lacking a uniformed opponent fought in cities and villages -- the military has $161 billion in contracts developing the components and an integrated system during the next 25 years. But the game is a surprisingly public show of just how it could work. "It's about approaching the battlefield of the future -- it gives you an idea of how networked battle command works," said SAIC spokesman Regen Wilson. "It's meant to serve as a familiarization tool for the typical soldier." Free Access Online SAIC spent about $1.5 million building the game that's being handed out for free at defense industry shows and on the U.S. Army's Web site. Built in less than a year, the game lets a soldier sit in the driver's seat and manage the 18 systems and dozens of sensors, probes and programs that do everything from flowing terrain information and sensing the tiniest movement underfoot to blowing up ships and cities. "The game isn't a profit enterprise for us," said Chris Hulick, SAIC project manager for communication, video and Web applications, calling Future Force Company Commander a promotional tool. "It's meant as a familiarization tool for the typical soldier to get a better handle on F2C2." Mark Long, co-chief executive officer of Seattle-based Zombie Inc., which built the game, called SAIC's decision to create a game a "visionary marketing tool." "The goal is to communicate something complex to people," he said. "It's not a defense contractor mentality, but it's very smart." Zombie, a small company where many of the executives have a military background, also built a game the Army is using as a recruiting tool. The Army game was the brainchild of a West Point colonel whose expertise is in economics. "For a tiny fraction of the advertising budget (they were spending on recruiting), you can make a video game and give it away and reach exactly who you want to reach -- people who like to play Web-based games," Long said. Through game play, F2C2 showcases how the Future Combat Systems program can provide the 21st century soldier unprecedented situational awareness and the ability to see first, understand first, act first and finish decisively, an SAIC company press release says. Locally Made Tools And it's based on the real battlefield tools being developed by San Diego-area workers, including those who work on Northrop Grumman Corp.'s unmanned aerial vehicles, employees at L-3 Communications Inc. and San Diego-based ViaSat Inc.'s satellite communication systems employees. BAE Systems' targeting software, and technologies from General Atomics are also being used. So players moving the unmanned aerial vehicles get a taste of steering a Predator or a tank full of infantry. They get the feel of guiding an army through an area mined with sophisticated bombs that can be turned on and off -- and detonated -- remotely. "There are four classes of unmanned aerial vehicles, manned and unmanned ground vehicles, an infantry carrier, two assault vehicles and reconnaissance and recovery vehicles," Hulick said. "We made this game as realistic as possible in the regard of using equipment, but we stayed with what's already widely available about the equipment's capabilities. "The point of the 18 systems is supporting the soldier, so explaining to the soldier how this works and what you can do is the most important part," he added. "When you play the game the soldier is at the center." Zombie took the assignment and came back with a list of questions, says Hulick, who'd never built a game before. "How much of an army experience do we want to create in the game? What's the scope? What level does the operator have in the game, is it a single soldier, a general?" Hulick recalled. "We decided it would be as a company commander -- the commander builds the team. "We decided against modeling down to a really intricate level," he added. For example, no one builds a village, sets up a kitchen or repairs vehicles. Although, said Long, vehicles don't need much fixing in this game. "The defense contractors are loathe to do anything that shows the destruction of their expensive equipment," Long said -- much like other manufacturers whose products have been in games. "Most companies go nuts when they find out gamers want to blow up their Jeeps." --- [1] http://www.sdbj.com/images/articles/SRsaic%20-%20F2C2_AUSA.jpg From saic at vision.moundalexis.com Mon Oct 30 23:35:24 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Mon, 30 Oct 2006 18:35:24 -0500 (EST) Subject: [saic] San Francisco re-ups SAIC unit for travel info. system Message-ID: <20061030183442.D26528-100000@vision.moundalexis.com> 30 October 2006 ; Government Computer News San Francisco re-ups SAIC unit for travel info. system http://www.gcn.com/online/vol1_no1/42436-1.html --- By Ethan Butterfield, The city of San Francisco has awarded a four-year, $11 million contract to Science Applications International Corp. to continue development, operations and maintenance of the Bay Area 511 Regional Transit Information System. Under the contract, bd Systems Inc. of Torrance, Calif., a subsidiary of SAIC, will evaluate and offer advice and development services to help expand and enhance the system to support a growing number of users in the San Francisco Bay Area. The Federal Communications Commission designated 511 as the national travel information number in July 2000. San Francisco's 511 system is a free phone and Internet service that offers real-time, regional transportation information, such as traffic conditions, incidents and driving times, as well as public transportation schedules, routes and fares. The 511 system, which even offers information on bicycling, is available 24 hours a day, seven days a week and consolidates information for more than 30 Bay Area transit services. Created by the California legislature in 1970, the Metropolitan Transportation Commission is the transportation planning, coordinating and financing agency for the nine-county San Francisco Bay Area. The commission manages the 511 contract. From saic at vision.moundalexis.com Tue Oct 31 20:45:24 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 31 Oct 2006 15:45:24 -0500 (EST) Subject: [saic] SAIC Awarded DHS Contract For Next-Generation High-Energy Radiation Radiographic Inspection System Message-ID: <20061031154517.B26528-100000@vision.moundalexis.com> 31 October 2006 ; Yahoo (PR Newswire) SAIC Awarded DHS Contract For Next-Generation High-Energy Radiation Radiographic Inspection System http://biz.yahoo.com/prnews/061031/dctu039.html?.v=72 --- SAN DIEGO and MCLEAN, Va., Oct. 31 /PRNewswire-FirstCall/ -- Science Applications International Corporation (NYSE: SAI - News) today announced the award of a two-year, cost-plus-award-fee contract from the Department of Homeland Security (DHS) Domestic Nuclear Detection Office (DNDO) to design, develop, fabricate, assemble, test and deliver a prototype next-generation high-energy radiation radiographic inspection system - Cargo Advanced Automated Radiography System (CAARS). This contract culminates in the delivery of a prototype CAARS unit designed to automatically detect radiological and nuclear materials, such as highly enriched uranium or weapons-grade plutonium, even if shielded by other materials. The automated nature of this unit will eliminate the need for operator interpretation of radiographic images. "This contract award represents a significant step in the production of an efficient, non-intrusive detection system to help identify nuclear materials and weapons of mass destruction that could be used by terrorist organizations as a means for unconventional nuclear attack on the United States," said Alex Preston, SAIC senior vice president and general manager of the Security and Transportation Technology Business Unit. "This threat represents one of the most serious and long-term threats to world peace and economic stability. In producing this prototype under the CAARS program, SAIC is committed to supporting DHS and DNDO in their fight against terrorism." From saic at vision.moundalexis.com Tue Oct 31 20:47:01 2006 From: saic at vision.moundalexis.com (Daily SAIC News) Date: Tue, 31 Oct 2006 15:47:01 -0500 (EST) Subject: [saic] BAE SYSTEMS First Round from NLOS Cannon Firing Platform Message-ID: <20061031154654.K26528-100000@vision.moundalexis.com> 31 October 2006 ; Business Wire BAE SYSTEMS First Round from NLOS Cannon Firing Platform http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20061031005726&newsLang=en --- MINNEAPOLIS--(BUSINESS WIRE)--BAE Systems successfully fired the first round from the Future Combat Systems (FCS) Non-Line-of-Sight (NLOS) Cannon Firing Platform. The Firing Platform is an ultra-lightweight 38-caliber, fully automated 155-mm howitzer featuring a fully automated ammunition handling system integrated onto a tracked chassis. Today's firing event launched an official Firing Platform testing and evaluation program that will run through 2008. "This successful firing is a testament to the excellent work being done by BAE Systems and the NLOS Cannon design and development team, including the Armaments Research and Development Command, Benet Laboratories and Watervliet Arsenal," said Jim Unterseher, BAE Systems director of Army Programs. "This dedicated workforce is committed to delivering the NLOS Cannon to our soldiers by 2008 and today's first round demonstrates we're right on schedule." BAE Systems will continue single-round firing tests with the Firing Platform during the coming weeks. Those tests will be followed by rate-of-fire testing to demonstrate the effectiveness of the NLOS Cannon's automation system, which will give soldiers the capability to fire a four-round Multiple Round Simultaneous Impact mission with the push of a button. The NLOS Cannon is the lead Manned Ground Vehicle of the Boeing/Science Applications International Corporation (SAIC) led FCS Program and the 155-mm Firing Platform is the first step toward development of complete NLOS Cannon pre-production units scheduled to be delivered to the Army by the end of 2008.