SAIC (SAI) Q4 2012 Earnings Call March 20, 2012 5:00 pm ET Executives Paul E. Levi - Senior Vice President of Investor Relations John P. Jumper - Chief Executive Officer, Director and Member of Classified Business Oversight Committee K. Stuart Shea - Chief Operating Officer and President of Intelligence Surveillance & Reconnaissance Group Mark W. Sopp - Chief Financial Officer and Executive Vice President Analysts Michael S. Lewis - Lazard Capital Markets LLC, Research Division Cai Von Rumohr - Cowen and Company, LLC, Research Division Edward S. Caso - Wells Fargo Securities, LLC, Research Division George A. Price - BB&T Capital Markets, Research Division Jason Kupferberg - Jefferies & Company, Inc., Research Division Brian Gesuale - Raymond James & Associates, Inc., Research Division Presentation Operator
I would now like to turn the call over to John Jumper, our President and CEO.John P. Jumper Thank you, Paul, and good afternoon, everyone. During the call today, I'd like to tell you what I believe about the SAIC as I get started in the CEO position, I'll introduce a dividend plan that's going to benefit our stockholders and I'll discuss company leadership positions. Following that, our new Chief Operating officer, Stu Shea, will talk about business development results and our strategic growth areas. Stu will be followed by Mark Sopp, who will discuss financial results, and I'll conclude with an update on strategy and areas of focus, then we'll open the lines to your questions. Let me start by saying how proud I am to be a part of the SAIC team. I couldn't be more pleased to be serving with Stu Shea as the company's COO. Stu, along with our group presidents Joe Craver and Tom Baybrook enjoy not only my confidence, but also the full support of our Board of Directors as we move forward. During much of my career in the Air Force, our nation's military has been deployed to one battlefield or another around the world. This has given me the opportunity to see SAIC, its products and its people as a customer in the field. Especially in the years since 9/11, the technical miracles produced by our company's fantastic scientific minds were turning to quick-reaction capabilities, delivered to people in the field and, in many cases, have been publicly credited by the nation's highest military leaders as instant solutions to critical problems. Some of these products have been saving lives from their very first days on the battlefield. We believe this is the most kind of -- noble kind of work, made possible by a team with a profound understanding of their customers' missions and who are dedicated to solving the most difficult problems facing those in the most extreme need. It makes us all very proud. If we believe that mounting pressure on defense budgets will result in fewer big, new program starts as well as fewer costly, single-function platforms, it follows that the next significant step in military capabilities will depend on more and better integration of programs and platforms our military already has. This is the heart and soul of SAIC's solution business.
My 5 years experience on the SAIC Board of Directors has only increased my admiration for the company and its broader portfolio of technical solutions. The expanding portfolio makes us increasingly competitive in the markets of energy and environment, health, logistics and cyber, both federal and commercial. As we grow our capabilities to expand our solutions into adjacent markets following our strategy, we are leveraging the science already developed in the federal solutions space back into the strategic growth areas.We understand that being recognized in adjacent markets is more than just science. Our strategy also calls for us to build enough mass and momentum to earn enhanced market recognition, along with the right incentives within the company to share solutions across the enterprise. Our strategy is to expand our solutions DNA to include health IT and energy. I believe the asymmetrical advantage of our nation is our ability to rapidly develop and deploy technical solutions. This is also SAIC's advantage. Our renewed enthusiasm to accelerate the execution of our strategy is enabled by the resolution of the CityTime issue. All of us at SAIC are appalled by the fraudulent behavior that led to CityTime. Our company has accepted full responsibility and accountability for the actions of those responsible. Read the rest of this transcript for free on seekingalpha.com