SAIC Climbs on Calming Forecast

In July, the company revealed that it had mishandled the addresses, social security numbers and other personal information of military personnel. The information was stored on an unsecured server used for a military health care contract.

But in the last quarter, the company topped analysts' revenue and earnings forecasts and management reassured investors with bullish comments on the outlook for government work, which accounts for nearly half of its revenue. SAIC is also moving forward on a GPS contract with the Air Force, a NATO missile defense contract and an IT project for the Navy.

Further bolstering its future growth plans, SAIC has about $1.1 billion in cash and recently extended a line of credit at previous terms, giving it ample firepower for the $300 million in acquisitions that management has planned. Management is targeting companies in intelligence, logistics and health care.