SAIC, Inc. SAI
Q3 2012 Earnings Call Transcript

Operator: Edward Caso, Wells Fargo.

Rick Eskelson - Wells Fargo Securities LLC: It's actually Rick Eskelson on for Ed. Thanks for taking my question. Just the first question, nice job on the bookings in the quarter. I was wondering if you could talk about the pace of bookings and the client decision making once we start the Government's new fiscal year. Have you seen the change between this fiscal versus Q4 of last year?

Walter P. Havenstein - CEO: We saw certainly at the end of Q4 of the government's last fiscal year some uptick right at the end. And that continued a bitter pace but we saw just like we'd expect to see that the beginning of this fiscal year which represents two periods of our fiscal Q3, a little slowing of the pace normal to what we saw last year and if you recall, we were disappointed in the pace of our decisions to the latter half of the government's fiscal year and frankly, that was the basis for our reduced guidance going into the balance of our fiscal year and I'd say the pace is pretty much normalized to where we saw it during the end of last two quarters of the government fiscal year.

Rick Eskelson - Wells Fargo Securities LLC: Then just real quick, I was wondering if you could give some thoughts on the super committee and now that they've come back and said they're not going to find the savings, first, do clients see an impact or did you see an impact to your clients on decision making and has there been a change now that they came out and said, we are not going to find the savings.

Walter P. Havenstein - CEO: I think first of all in the context of their inability to reach decision with regard to that committee, although it's disappointing, frankly I don't think it's having a damaging impact to our business simply because the pace is based upon the FY '12 continuing resolution and that's frankly what we expected to see for this quarter and I think I am reasonably bullish that they will actually get to on Omnibus before the end of this quarter. And as we kind of said two quarters ago, we thought by the end of this calendar year we would see things normalize within the government and I think frankly that's regardless of the results of the super committee.

Rick Eskelson - Wells Fargo Securities LLC: And just to clarify on Omnibus, were you talking about the government's fiscal quarter or your fiscal quarter?

Walter P. Havenstein - CEO: I am talking about the government's Omnibus for the balance of government's fiscal '12.

Rick Eskelson - Wells Fargo Securities LLC: So you think your decision could happen as early as by the end of December on Omnibus or by the end of January?

Walter P. Havenstein - CEO: They have to either do that or come up with some continuing resolution. I think there is – if they can get some of the policy issues resolved, I think there is fairly good chance that they will come up with an Omnibus still for the balance of the budgets for FY '12.

Operator: Cai von Rumohr, Cowen and Company.

Cai von Rumohr - Cowen and Company: You gave us a number of the loss of at least $230 million on the CityTime contract. Could you may be give us some clue in terms of what's in the 10-Q? And I know that Mayor Bloomberg has asked for $600 million, but kind of how did you come to these numbers and how should we think about what's the upside left on this?

Walter P. Havenstein - CEO: Cai, I know you appreciate the difficulty we have in describing in any more detail frankly beyond what we've just discussed with you today, given that the U.S. attorney investigation is an ongoing investigation and we still have areas to resolve. So, frankly, I think, it'd be inappropriate for us to give you anymore color on that at this point. I wish we could, but it just would be inappropriate.