Oct. 29, 2009 (PR Newswire) -- ARLINGTON, Va., Oct. 29 /PRNewswire-FirstCall/ -- Stanley, Inc. (NYSE: SXE), a leading provider of systems integration and professional services to the U.S. federal government, today announced record revenues, earnings and margins for its second quarter ended September 25, 2009.

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Second-quarter revenues exceeded the high end of management's guidance by more than $4 million and diluted EPS exceeded the high end of guidance by $0.06.

Stanley's revenue growth in the second quarter of fiscal year 2010 was attributed to increased IT support services for the U.S. Marine Corps; military intelligence training and operations support for the U.S. Army; biometrics software development, training and support for certain Department of Defense agencies; and additional production and engineering services performed for the Space and Naval Warfare Systems Command.

Second Quarter Fiscal Year 2010 Results:

Revenues for the second quarter ended September 25, 2009, were $217.1 million, an increase of 14 percent over second quarter fiscal year 2009 revenues of $191.1 million. Organic revenue growth was 11 percent. EBITDA(2) was $23.2 million for the quarter, an increase of 22 percent over EBITDA of $18.9 million in the second quarter of last fiscal year. EBITDA margin for the second quarter was 10.7 percent compared with 9.9 percent in the second quarter of last fiscal year, due primarily to improved performance on contracts and a greater proportion of more profitable fixed-price contracts as well as continued efficiencies realized in the company's general and administrative infrastructure on a higher revenue base. Operating income was $20.3 million, up 24 percent from $16.3 million in the same quarter of last fiscal year. Operating margin was 9.4 percent versus 8.6 percent in the second quarter of last fiscal year. The increases in operating margin resulted primarily from the factors improving EBITDA margin as well as depreciation and amortization representing a lesser percentage of revenues, as compared to the prior year.

Net income for the quarter was $11.8 million versus $8.7 million for the second quarter of last fiscal year, an increase of 35 percent. Diluted earnings per share for the quarter were $0.49 compared with diluted earnings per share of $0.37 for the second quarter of last fiscal year.

Contract backlog at September 25, 2009, was $2.0 billion, essentially unchanged from first quarter of fiscal year 2010 contract backlog of $2.0 billion at June 26, 2009, and a decrease of 5 percent from second-quarter fiscal year 2009 contract backlog of $2.1 billion at September 26, 2008.

Second Quarter Fiscal Year 2010 Operational Highlights:

--  Second-quarter net bookings totaled $179.9 million, equating to a
book-to-bill ratio of 0.8:1.
--  Among new business awards and additional tasking in the second quarter:
--  A $64 million, five-year, single-award,
indefinite-delivery/indefinite-quantity contract with the U.S. Army
to support the Aviation and Missile Research, Development and
Engineering Center in the development of Advanced-Capability
Insensitive Munitions Warheads;
--  A $58 million, five-year basic ordering agreement to continue
providing help desk, installation/integration, maintenance, training
and system administration support services to the Department of
State's Bureau of Consular Affairs;
--  A five-year, fixed-price contract and a 10-year, time-and-materials
contract, totaling $38 million, supporting Intelligence agencies
with cybersecurity, network operations and systems engineering
services;
--  A $23 million, two-year blanket purchase agreement supporting the
U.S. Army Intelligence Center of Excellence; and

--  Two one-year task orders totaling $16 million supporting the U.S.
Army Intelligence and Security Command's Information Dominance
Center with COMSEC engineering, cybersecurity, network operations
and systems engineering services.

Six-Month Fiscal Year 2010 Results:

For the six months ended September 25, 2009, revenue increased 17 percent to $425.8 million compared with $363.6 million for the same period in the prior fiscal year. Organic revenue growth for the first six months of fiscal year 2010 was 8 percent. EBITDA for the six-month period ended September 25, 2009, increased 28 percent to $44.7 million compared with $35.1 million for the same period in the prior fiscal year. EBITDA margin for the first six months of fiscal year 2010 was 10.5 percent, up from 9.6 percent for the same period in the prior fiscal year. EBITDA margin increased primarily as a result of improved performance on contracts and a greater proportion of more profitable fixed-price contracts. Operating income for the first six months of fiscal year 2010 was $39.1 million, an increase of 27 percent over operating income of $30.7 million reported a year earlier. Operating margin for the first six months of fiscal year 2010 was 9.2 percent compared with 8.4 percent in the first six months of fiscal year 2009. Operating margin increased year over year primarily as a result of the factors improving EBITDA and EBITDA margin, offset slightly by depreciation and amortization representing a higher percentage of revenues.

Net income for the first six months of fiscal year 2010 was $22.4 million compared with net income for the same period last fiscal year of $17.0 million. Diluted earnings per share for the first six months of fiscal year 2010 were $0.93 compared with diluted earnings per share of $0.72 for the first six months of fiscal year 2009.

Cash flow from operations for the first six months of fiscal year 2010 was $28.6 million. Days sales outstanding (DSO) for the second quarter was 79 days, down from 84 days for the first quarter of fiscal year 2010.

"Stanley's second quarter of fiscal year 2010 demonstrated strong revenue growth and margin improvement, EPS growth and cash flow generation," said Phil Nolan, Stanley's chairman, president and CEO.