SI International Profit Falls 24 Percent

From the Associated Press

SI International said second-quarter profit fell 24 percent, to $3.8 million (29 cents a share) from $5 million (38 cents) in the comparable period a year earlier, as rising costs outpaced revenue growth. Revenue at the Reston-based IT and network services provider rose 20 percent, to $142.8 million from $118.8 million.

Revenue growth was outpaced by increased expenses. SI International's total operating expenses rose 24 percent, to $134.7 million. Cost of services rose 28 percent, to $94.5 million, accounting for the bulk of growing expenses during the quarter.

Separately, SI International said last night that it canceled a deal announced two weeks ago to acquire Arrowpoint for $16 million in cash. No reasons were provided as to why the deal was canceled. Alexandria-based Arrowpoint provides IT management, engineering and consulting services to the National Guard, Navy and Army. Its revenue in fiscal 2007 totaled roughly $17.3 million.

By Terri Rupar  |  July 29, 2008; 10:50 AM ET  | Category:  Earnings
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