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For the fourth quarter, SRA International's net income dropped to $17.48 million or $0.30 per share from $18.77 million or $0.32 per share in the year-earlier quarter.

On average, fourteen analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimate typically excludes one-time items. 

Amongst others in the industry, CACI International Inc. (CACI), in its third quarter, reported a profit that increased 5.1% to $23.4 million or $0.77 per share, as revenues dropped 3.5% to $45.0 million.

Another player, ManTech International Corp. (MANT) said its second quarter net income was $28.5 million, up 30% from the prior year, on a 11% increase in revenue at $514.1 million.

SRX revenue increased 4.5% to $401.95 million from $384.79 million in the same quarter a year ago, beating Street estimates of $386.23 million.

Organic revenue growth for the quarter period was 3.5%. As of June 30, 2009, the company's backlog of signed business orders was $4.1 billion, up 5% year-over-year, and the funded portion of backlog was $762 million.

SRA International was amongst those companies that managed to see through the recession and its aftermath, primarily as a government contractor. Its contracts span a variety of areas including health, information systems, naval as well as environmental protection. Potential value of business obtained by the company in the third quarter was $434 million, with all options exercised.

SRA company, however, reported declines in profit for the third straight quarter.

In the preceding quarter, SRA International reported a lower profit for its third quarter as the slight increase in revenue was offset by higher operating costs and expenses. Profit for the quarter was $14.27 million or $0.25 per share, while revenues increased 0.2% to $376.9 million.

Executive Vice President and CFO Rick Nadeau said, "Our Q4 financial results reflected effective cost containment across the company and improving performance in our Era business. Cash flow from operations was $60 million in Q4, and our net debt balance was $300 thousand as of June 30, 2009."

Operating income for the quarter was $28.98 million, down from $30.30 million in the prior-year quarter. Operating margin was 7.2% and, with a net margin of 4.3%.

Total operating costs and expenses was $372.97 million, compared to $354.49 million in the year-earlier quarter.

For fiscal year 2009, net income declined to $58.00 million or $1.01 per share from $73.26 million or $1.24 per share in the year-ago period. Revenue was $1.54 billion, up 2.2% from $1.51 billion in prior-year period.

Looking ahead to the full year, SRA International said it expects earnings in the range of $1.15 to $1.25 per share and revenues in the range of $1.585 billion to $1.645 billion.

Analysts' currently expect earnings of $1.13 per share for the year, on revenues of $1.62 billion.

Sloane added, "Having won over $2.3 billion of new business in FY09, we've improved our revenue visibility for FY10 and established a solid foundation for growth."

On July 21, 2009, brokerage Sun Trust Rbsn Humphrey Upgraded SRA International shares to 'Buy' from 'Neutral,' with a mean target of $20.64.

SRX closed Wednesday's regular trading at $19.84, up $0.74 or 3.87%, on a volume of 1.13 million shares. In after-hours, the stock further gained $0.50 or 2.52%, to trade at $20.34. In the last-52 week period, the stock trended in the range of $11.22 to $24.79, with a volume of 1.13 million shares.

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