After the market closed on Tuesday, defense solutions and service provider SAIC (NYSE:SAI) released its first earnings report as a public company. Here are the quick and dirty details for the fiscal 2007 third quarter ended Oct. 31.

  • Sales grew 5.8% to $2.1 billion, slightly ahead of analyst projections. Management said that 3% of that growth was organic, or internal.
  • Net income grew 7.7% while diluted earnings grew 12% as management repurchased shares.
  • Management expects FY2007 sales to come in at $8.15 billion to $8.25 billion and diluted continuing earnings of $0.96 to $0.98.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$2,142

$2,024

5.8%

Net Profit

$98

$91

7.7%

EPS

$0.28

$0.25

12.0%

Diluted Shares

347

358

(3.1%)

*Three months ended Oct. 31, 2006 and 2005.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

13.07%

11.41%

1.66

Operating Margin

6.72%

5.24%

1.48

Net Margin

4.58%

4.50%

0.08

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q1 2006

Change

Cash + ST Invest.

$3,636

$2,669

36.2%

Accounts Rec.

$1,562

$1,515

3.1%

Inventory

$151

$191

(20.9%)



Liabilities

Q3 2006

Q1 2006

Change

Accounts Payable

$946

$959

(1.4%)

Long-Term Debt

$1,193

$1,192

0.1%

*Balance sheet metrics stem from SAIC's first quarter; year-over-year balance sheet details are not comparable because the company was not yet public.

Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$505

$356

$149

Capital Expenditures

$65

$39

$26

Free Cash Flow

$440

$317

$123
*Nine months ended Oct. 31.

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.