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Stanley Inc. Reports Operating Results (10-K)

May 20, 2010 | About:
10qk

10qk

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Stanley Inc. (SXE) filed Annual Report for the period ended 2010-03-31.

Stanley Inc. has a market cap of $880.3 million; its shares were traded at around $36.56 with a P/E ratio of 19.6 and P/S ratio of 1.1. Stanley Inc. had an annual average earning growth of 32.8% over the past 5 years.SXE is in the portfolios of Ron Baron of Baron Funds, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Consummation of the Offer is subject to various conditions, including among others, the expiration or termination of applicable waiting periods under the United States Hart-Scott-Rodino Antitrust Improvements Act, approval by the Committee on Foreign Investment in the United States, the receipt of certain other regulatory approvals and other customary closing conditions, each as described in the Merger Agreement. In addition, it is also a condition to the consummation of the Offer that at least a majority of the outstanding shares of Common Stock (determined on a fully diluted basis) shall have been validly tendered and not withdrawn in accordance with the terms of the Offer. Subject to the terms of the Merger Agreement, we have granted Merger Sub an option to purchase that number of newly-issued shares of Common Stock that is equal to one share more than the amount needed to give Merger Sub ownership of 90% of the outstanding shares of Common Stock (determined on a fully-diluted basis (which assumes conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or the other terms and conditions thereof)) (the "Top-Up Option"). The Top-Up Option is exercisable only if Merger Sub acquires at least 80% of the outstanding shares of Common Stock pursuant to the Offer or otherwise. Merger Sub will pay us the Offer Price for each share acquired upon exercise of the Top-Up Option.

For the fiscal year ended March 31, 2010, or fiscal 2010, we derived approximately 77% of our revenues from agencies within the Department of Defense and approximately 23% of our revenues from federal civilian government agencies. For fiscal 2010, our top 10 revenue-generating contracts accounted for approximately 58% of our revenues. Our contract with the Department of the Navy for production engineering and integration services under various Space and Naval Warfare Systems Command (SPAWAR) programs, which is our largest revenue-generating contract, accounted for approximately 11% of our revenues for fiscal 2010. No other single contract accounted for more than 10% of our revenues for fiscal 2010. We acted as the prime contractor on contractual engagements that provided approximately 69% of our revenues for fiscal 2010.

Over the three-year period ended March 31, 2010, we have won 92% of competitively awarded contracts on which we were the incumbent. Over the three-year period ended March 31, 2010, we achieved an overall win rate, including the incumbent contracts referred to above, of approximately 55%. For a discussion of how we calculate our win rate, see "Business Development."

For fiscal 2010, we derived approximately 77% of our revenues from agencies within the Department of Defense, as compared to 72% in the fiscal year ended March 31, 2009, or fiscal 2009, and 66% in the fiscal year ended March 31, 2008, or fiscal 2008. Approximately 23% of our fiscal 2010 revenues were from federal civilian government agencies. In fiscal 2009 and 2008, approximately 28% and 34%, respectively, of our revenues were from federal civilian government agencies. Our largest customer group is the U.S. Army, which accounted for approximately 44% of revenues for fiscal 2010. In fiscal 2009 and 2008, the U.S. Army accounted for approximately 44% and 38%, respectively, of our revenues. Our contracts with the Department of the Navy for production engineering and integration services under various SPAWAR programs, which is our largest revenue-generating contract, accounted for approximately 11% of our revenues for fiscal 2010 as compared to 10% in fiscal 2009 and 12% in fiscal 2008. Our contract with the Department of State for the provision of passport processing and support services accounted for approximately 7% of our revenues for fiscal 2010 as compared to 10% in fiscal 2009 and 16% in fiscal 2008. Contracts for which we acted as the prime contractor represented approximately 69% of our revenues for fiscal 2010, as compared to 69% in fiscal 2009 and 77% in fiscal 2008.

Over the three year period ended March 31, 2010, we achieved an overall win rate of approximately 55%. Overall win rate represents the number of bids won as a percentage of the total number of bids evaluated in that same period. We also measure our win rate with respect to competitively awarded contracts on which we are the incumbent contractor. Over the three year period ended March 31, 2010, we achieved a win rate of 92% on these contracts.

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