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Fourth-quarter and fiscal year 2009 revenues were at the high end of company guidance, and diluted EPS exceeded the high end of company guidance by $0.01 for both periods. Stanley's revenue growth for the fourth quarter resulted primarily from expansion of the U.S. Army's global RESET efforts; support for the U.S. Central Command's biometrics programs in Iraq and Afghanistan; provision of IT services for various Department of Defense customers; and support services to the U.S. Army's Intelligence and Security Command (INSCOM).

Fourth-Quarter Fiscal Year 2009 Results:

Revenues for the fourth quarter ended March 31, 2009 were $212.4 million, an increase of 22 percent over fourth-quarter fiscal year 2008 revenues of $173.5 million. Organic revenue growth was 10 percent. EBITDA(2) was $21.5 million for the quarter, an increase of 36 percent over EBITDA of $15.8 million in the year-ago quarter, driven by organic revenue growth, the acquisition of Oberon Associates, Inc. in July 2008 and improved EBITDA margin. EBITDA margin for the fourth quarter was 10.1 percent compared with 9.1 percent a year earlier, due primarily to a greater proportion of more profitable time-and-materials and fixed-price contracts, as opposed to cost-plus-fee contracts. Operating income was $18.5 million, up 32 percent from $14.0 million in the same quarter of last fiscal year. Operating margin was 8.7 percent versus 8.1 percent in the fourth quarter of fiscal 2008. The increases in operating income and margin resulted primarily from the factors improving EBITDA, partially offset by the amortization of purchased intangibles related to the acquisition of Oberon.

Net income for the quarter was $10.5 million versus $7.7 million a year ago. Diluted earnings per share for the quarter was $0.44 compared with diluted earnings per share of $0.33 for the fourth quarter of fiscal year 2008.

Contract backlog at March 31, 2009 was $2.0 billion up from $1.8 billion at March 31, 2008.

   Fourth-Quarter Fiscal Year 2009 and Recent Operational Highlights:   --  Fourth-quarter bookings totaled $103 million. Fiscal 2009 bookings       totaled $955 million, equating to a book-to-bill ratio of 1.2:1.   --  Among recent new business awards and additional tasking:       --  A $120 million, three-year, time-and-materials contract to provide           lifecycle software engineering services to the U.S. Army;       --  Nearly $30 million in awards with classified customers in the           intelligence community;       --  A $19.3 million, five-year, time-and-materials contract to provide           engineering and advanced component technology services, including           micro-, nano-, and photonic-technology research and development,           for the U.S. Army Weapons Sciences Directorate, Research           Development and Engineering Command;       --  A $1.7 million, one-year, cost-plus-incentive fee contract for           Biometric Multispectral Fingerprinting by the U.S. Army           Information Technology, E-Commerce and Commercial Contracting           Center - West;       --  A 10-year multiple award/indefinite-delivery, indefinite-quantity           (MA/IDIQ) Alliant contract by the U.S. General Services           Administration; and        --  A five-year MA/IDIQ contract to support the development and           training of Battle Command technology with the U.S. Army Fires           support communities.     Fiscal Year 2009 Results:   

For the fiscal year ended March 31, 2009, revenue increased 29 percent to $779.7 million compared with $604.3 million for fiscal year 2008. Organic revenue growth for fiscal year 2009 was 19 percent. EBITDA for the year increased 40 percent to $76.9 million compared with $54.9 million for fiscal year 2008, driven by organic revenue growth, the acquisition of Oberon Associates, Inc. in July 2008 and improved EBITDA margin. EBITDA margin for fiscal year 2009 was 9.9 percent, up from 9.1 percent for fiscal year 2008. EBITDA margin increased primarily as a result of a greater proportion of more profitable time-and-materials and fixed-price contracts, as opposed to cost-plus-fee contracts, and continued efficiencies realized in the company's general and administrative infrastructure on a higher revenue base. Operating income for fiscal year 2009 was $66.7 million, an increase of 39 percent over operating income of $47.9 million for the prior fiscal year. Operating margin for fiscal year 2009 was 8.5 percent compared with 7.9 percent for fiscal year 2008. Operating income and margin increased year-over-year primarily as a result of the factors improving EBITDA and EBITDA margin, partially offset by the amortization of purchased intangibles related to the acquisition of Oberon.

Net income for fiscal year 2009 was $37.2 million compared with net income of $26.2 million for fiscal year 2008. Diluted earnings per share for fiscal year 2009 was $1.56 compared with diluted earnings per share of $1.12 for fiscal year 2008.

Cash flow from operations for fiscal year 2009 was $44.5 million, reflecting $6.0 million of operating cash flow for the fourth quarter of fiscal 2009. Days sales outstanding (DSO) for the fourth quarter was 79 days, up from 78 days for the third quarter of fiscal year 2009.