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SAIC fiscal 1Q earnings drop 31 percent

MCLEAN, Va. (AP) -- SAIC posted a 31 percent drop in fiscal first-quarter earnings on Monday, as government spending cuts weighed down the security and communications technology company's revenue.

In after-hours trading SAIC Inc. shares fell 2 percent, or 32 cents, to $14.52.

Chairman and CEO John Jumper said the results reflected federal government budget tightening. Jumper pointed to the automatic spending cuts that kicked in earlier this year.

Net income for the three months ending May 3 was $81 million, or 23 cents per share, down from $117 million, or 35 cents per share, in the same period last year. Analysts expected 25 cents per share in the recent quarter, according to FactSet.

Revenue slipped to $2.71 billion from $2.76 billion. Analysts expected $2.58 billion.

SAIC plans to split into two separate companies later this year. One, Science Applications International Corp., will handle information technology and other services. The other, Leidos Holdings, Inc., will focus on national security, engineering and other work.

Last month SAIC said it could get as much as $228 million from a contract to provide computing and information technology services for Sandia National Laboratories, part of the Energy Department's National Nuclear Security Administration.