WASHINGTON (AP) ¿ Defense contractor SAIC Inc. is scheduled to report its fiscal first-quarter results Wednesday following a period with many contract wins. During the quarter, the defense contractor won a number of government contracts including a $115 million deal from the Army for a biometric system that collects fingerprints, iris scans and more of persons of interest. The San Diego-based company was also selected by the Army as one of several companies to provide simulation and training services under a 10-year contract that could be worth up to $17.5 billion. Analysts polled by Thomson Reuters expect profit of 27 cents per share on $2.51 billion in revenue. In May, Defense Secretary Robert Gates provided further details of the Pentagon's fiscal 2009 defense budget, including massive cuts on some programs including the Army's $160 million modernization plan, run by Boeing Co. and SAIC. Gates proposed stripping $87 billion worth of ground vehicles and a giant cannon from the program, saying they didn't fit with the Army's current fights against insurgencies in places like Afghanistan and Iraq.
According to defense analysts, the Army will likely keep Boeing Co. and SAIC for work on the overall network. Looking ahead, a bright spot for SAIC is it's exposure for more work in federal cybersecurity, says William Loomis, an analyst for Stifel Nicolaus & Co. President Barack Obama unveiled plans last month to make the nation's computer networks more secure, fulfilling a campaign pledge to make cybersecurity a top priority. On Tuesday, SAIC's stock closed at $17.80.