DONNA BORAKWASHINGTON (AP) ¿ SAIC Inc. said Wednesday its fiscal first-quarter profit grew 13 percent as revenue soared on U.S. military spending on defense logistics and cybersecurity. The San Diego-based contractor also assured investors plans by the Pentagon to restructure the Army's $160 billion modernization plan, known as Future Combat Systems, will not hurt its financial results for the rest of the year. SAIC says it still expects revenue to grow between 6 percent and 9 percent and earnings to rise between 11 percent to 18 percent. "Although the potential restructuring of FCS provides some uncertainty, based on our strong market position across our wide business base, we expect fiscal year 2010 to be another solid year for the company," said Ken Dahlberg, SAIC chairman and CEO, in a statement. SAIC and Boeing Co. are both responsible for overseeing the Army's program. SAIC, which also makes systems for drones that are being used for surveillance in Afghanistan, earned $116 million, or 28 cents per share, in the quarter ended April 30. It recorded net income of $103 million, or 24 cents per share, in the year-earlier period.
Revenue rose nearly 12 percent to $2.65 billion from $2.37 billion, on higher sales of logistics, defense information technology and cybersecurity. The results beat estimates of analysts surveyed by Thomson Reuters, who had forecast earnings of 27 cents per share on revenue of $2.51 billion. For the most part, the defense industry has remained a relative bright spot in the economy, as most big weapon suppliers have avoided the credit problems and lower sales experienced in other industries. During the quarter, SAIC booked a total of $2.6 billion in new business. It has a current backlog of $16.7 billion as of April 30. In after-hours electronic trading, shares of SAIC rose 65 cents, or 3.7 percent, to $18.25. The company's stock has traded between $15.94 and $21.90 over the past 52 weeks.