Sra International 8-K SRA Announces Financial Results for Fourth Quarter and Fiscal Year 2009

Exhibit 99.1

CONTACT INFORMATION:

Dave Keffer

VP, Investor Relations

703.502.7731

david_keffer@sra.com

SRA Announces Financial Results for Fourth Quarter and Fiscal Year 2009

• Revenue of $402 million in Q4, $1.54 billion in FY 2009

• Diluted EPS of $0.30 in Q4, $1.01 in FY 2009

• Contract awards of $434 million in Q4, $2.37 billion in FY 2009

• Operating cash flow of $60 million in Q4, $91 million in FY 2009

FAIRFAX, Va., August 12, 2009 — SRA International, Inc. (NYSE: SRX), a leading provider of technology and strategic consulting services and solutions to government organizations and commercial clients, today announced operating results for the fourth quarter and fiscal year (FY) 2009, which ended June 30, 2009.

For the quarter, revenue was $402.0 million, up 4.5% from $384.8 million in the June 2008 quarter. Organic revenue growth for the same period was 3.5%. Operating income for the quarter was $29.0 million, for an operating margin of 7.2%. Net income was $17.5 million, for a net margin of 4.3%. Diluted earnings per share (DEPS) for the quarter were $0.30, down $0.02 year over year.

For the full fiscal year, revenue was $1.541 billion, up 2.2% from $1.507 billion in FY 2008. Organic revenue growth for the same period was 0.7%. Operating income for the year was $99.9 million, for an operating margin of 6.5%. Net income was $58.0 million, for a net margin of 3.8%. DEPS for the year were $1.01, down $0.23 year over year.

SRA President and CEO Stan Sloane said, “We’re pleased to have made progress in our business execution during the second half of FY09. Organic revenue growth and operating margins were higher in Q4 than in any prior quarter during the year. Having won over $2.3 billion of new business in FY09, we’ve improved our revenue visibility for FY10 and established a solid foundation for growth.”

Executive Vice President and CFO Rick Nadeau added, “Our Q4 financial results reflected effective cost containment across the company and improving performance in our Era business. Cash flow from operations was $60 million in Q4, and our net debt balance was $300 thousand as of June 30, 2009.”

Contract Awards

SRA won new business in the third quarter with potential value of $434 million, if all option years are exercised. As of June 30, 2009, the company’s backlog of signed business orders was $4.1 billion, up 5% year-over-year, and the funded portion of backlog was $762 million.

Major highlights of competitive contract awards in the quarter include:

• Classified Contract. SRA was awarded a $68 million contract in support of a classified customer.

• Department of Defense, Joint Staff Information Network. The company won a 31-month, $63 million task order to provide systems integration services for the Pentagon’s Joint Staff Information Network. Awarded under the ENCORE II contract vehicle, the task order involves system and application upgrades, as well as communications infrastructure support.

• Environmental Protection Agency (EPA). The EPA awarded SRA two recompete task orders under its Software Engineering and Specialized Scientific Support contract. The task orders have a combined value of $30 million and cover a range of technical and program support services.

SRA was also awarded several multiple-award, indefinite delivery, indefinite quantity (ID/IQ) contracts in the June quarter. ID/IQ wins are not included in the company’s quarterly bookings figure, but they provide a solid foundation for future growth.

• U.S. Army, Program Executive Office Enterprise Information Systems (PEO EIS).PEO EIS named SRA one of the awardees of its Program Management Support Services-2 (PMSS-2) contract, which covers a variety services related to information technology and program support.

• Department of Homeland Security (DHS), National Communications System (NCS). SRA was one of the prime contractors selected by DHS for a five-year ID/IQ contract with a combined ceiling value of $388 million. Task orders under this contract will involve support for emergency communications and operations.

Forward Guidance

The company is issuing initial revenue and earnings guidance for Fiscal Year 2010. The table below represents management’s current expectations about the company’s future financial performance, based on information available at this time. The forward guidance in this table does not include any effect for acquisitions that SRA might make in the future. The guidance assumes a FY 2010 diluted share count of 58.6 million.

Measure	Fiscal Year (FY) Ending June 30, 2010	Change from FY 2009 to 2010
Revenue	$1.585 billion to $1.645 billion	3% to 7%
Diluted earnings per share	$1.15 to $1.25	14% to 24%

Conference Call

SRA senior management will hold a conference call to discuss these operating results and forward guidance today at 5:00 PM Eastern. Interested parties may listen to the conference call by dialing 888-603-9073 (U.S./Canada) or 210-234-0078 (Other) with passcode SRX. The conference call will be Webcast simultaneously through a link on the SRA Web site (www.sra.com). A replay of the conference call will be available approximately two hours after the conclusion of the call through August 26, 2009 by dialing 866-373-9228 (U.S./Canada) or 203-369-0280 (Other) and entering passcode 9458.

About SRA International, Inc.

SRA and its subsidiaries are dedicated to solving complex problems of global significance for government organizations serving the national security, civil government and global health markets. Founded in 1978, the company and its subsidiaries have expertise in such areas as air surveillance and air traffic management; contract research organization (CRO) services; cybersecurity; disaster response planning; enterprise resource planning; environmental strategies; IT systems, infrastructure and managed services; logistics; public health preparedness; strategic management consulting; systems engineering; and wireless integration.

FORTUNE^® magazine has chosen SRA as one of the “100 Best Companies to Work For” for ten consecutive years. The company and its subsidiaries employ more than 6,900 employees serving clients from headquarters in Fairfax, Va., and offices around the world. For additional information on SRA, please visit www.sra.com.

Any statements in this press release about future expectations, plans, and prospects for SRA, including statements about the estimated value of the contracts and work to be performed, and other statements containing the words “estimates,” “believes,” “anticipates,” “plans,” “expects,” “will,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements included in this press release represent our views as of August 12, 2009. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to August 12, 2009.

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Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share amounts)

	Three Months Ended						Year Ended
	30-Jun-09			30-Jun-08			30-Jun-09			30-Jun-08
Revenue	$	401,950		$	384,789		$	1,540,556		$	1,506,933
Operating costs and expenses:
Cost of services		293,130			284,207			1,123,868			1,121,913
Selling, general and administrative		71,353			63,842			287,853			240,340
Depreciation and amortization		8,484			6,442			30,021			25,263
Gain on sale of Constella Futures Holding, LLC		—			—			(1,939	)		—
Acquired in-process research and development		—			—			900			—
Total operating costs and expenses		372,967			354,491			1,440,703			1,387,516
Operating income		28,983			30,298			99,853			119,417
Interest expense		(694	)		(1,072	)		(5,526	)		(3,288	)
Interest income		431			887			2,283			4,261
Gain on sale of Mantas, Inc.		—			892			—			892
Income before taxes		28,720			31,005			96,610			121,282
Provision for income taxes		11,237			12,234			38,610			48,018
Net income	$	17,483		$	18,771		$	58,000		$	73,264
Earnings per share:
Basic	$	0.31		$	0.33		$	1.03		$	1.27
Diluted	$	0.30		$	0.32		$	1.01		$	1.24
Weighted-average shares:
Basic		56,331,705			57,463,961			56,315,718			57,566,645
Diluted		57,388,438			58,886,594			57,481,742			59,277,059

Consolidated Balance Sheets (Unaudited)

(in thousands)

	As of
	30-Jun-09		30-Jun-08
Current assets:
Cash and cash equivalents	$	74,683	$	229,260
Accounts receivable, net		356,261		344,974
Inventories, net		6,786		—
Prepaid expenses and other		37,707		65,353
Deferred income taxes, current		13,924		11,544
Total current assets		489,361		651,131
Property, plant and equipment, net		38,130		37,949
Other assets:
Goodwill		490,481		395,766
Identified intangibles, net		43,235		36,813
Deferred income taxes, noncurrent		1,272		3,217
Deferred compensation trust		6,494		7,747
Other assets		25,320		3,892
Total other assets		566,802		447,435
Total assets	$	1,094,293	$	1,136,515
Current liabilities:
Accounts payable and accrued expenses	$	137,443	$	163,927
Accrued payroll and employee benefits		111,296		99,742
Billings in excess of revenue recognized		16,598		15,111
Total current liabilities		265,337		278,780
Long-term liabilities:
Long-term debt		75,000		150,000
Deferred compensation liability		6,494		7,747
Other long-term liabilities		5,842		7,052
Total long-term liabilities		87,336		164,799
Total liabilities		352,673		443,579
Stockholders’ equity		741,620		692,936
Total liabilities and stockholders’ equity	$	1,094,293	$	1,136,515

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Year Ended
	30-Jun-09			30-Jun-08
Cash flows from operations:
Net income	$	58,000		$	73,264
Adjustments to reconcile net income to net cash flow from operations:
Depreciation and amortization		30,021			25,263
Stock-based compensation		10,660			10,148
Deferred income taxes		1,550			(738	)
Gain on sales		(1,939	)		(892	)
Loss on disposal of property and equipment		—			788
Acquired in-process research and development		900			—
Working capital changes, net of the effect of acquisitions and divestitures		(8,556	)		(24,036	)
Net cash flow from operations		90,636			83,797
Cash flows from investing activities:
Capital expenditures		(15,057	)		(10,763	)
Payments to Spectrum Solutions Group, Inc. shareholders		(9,396	)		—
Acquisitions, net of cash acquired		(132,275	)		(189,714	)
Proceeds from sale of Constella Futures Holding, LLC		14,320			—
Proceeds from sale of Mantas, Inc.		—			892
Net cash used in investing activities		(142,408	)		(199,585	)
Cash flows from financing activities:
Issuance of common stock		4,600			15,027
Excess tax benefit of stock option exercises		1,075			4,667
Net repayments under short-term credit facilities		(9,910	)		—
Borrowings under credit facility		75,000			230,000
Repayments under credit facility		(150,000	)		(80,000	)
Payment of financing costs		—			(1,081	)
Reissuance of treasury stock		399			679
Purchase of treasury stock		(22,042	)		(36,278	)
Net cash (used in) provided by financing activities		(100,878	)		133,014
Effect of exchange rate changes on cash and cash equivalents		(1,927	)		—
Net (decrease) increase in cash and cash equivalents		(154,577	)		17,226
Cash and cash equivalents, beginning of period		229,260			212,034
Cash and cash equivalents, end of period	$	74,683		$	229,260
Supplemental disclosures of cash flow information:
Cash paid during the period:
Interest	$	5,761		$	2,656
Income taxes	$	36,451		$	51,390
Cash received during the period:
Interest	$	2,643		$	4,376
Income taxes	$	938		$	961

Reconciliation Between Total Revenue and Organic Revenue (Unaudited)

(in thousands)

Organic revenue, as presented, is computed by comparing our reported revenue for the current period to revenue for the same period in the prior year adjusted to include revenue of acquired businesses for the pre-acquisition period of the prior year. In arriving at prior-year revenue, we include the revenue of acquired companies and remove the revenue of divested companies for the prior-year periods comparable to the current-year periods for which the companies are included in our reported revenue. The resulting rate is intended to represent our organic, or non-acquisitive, growth or decline year-over-year, including comparable period growth or decline attributable to acquired companies. We believe that this non-GAAP financial measure provides useful information because it allows investors to better assess the underlying growth rate of our business, including the post-acquisition activity of acquired companies. This non-GAAP financial measure is not used for any other purpose and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

	Three Months Ended					% Increase
	30-Jun-09		30-Jun-08
Total Revenue, as reported	$	401,950	$	384,789		4.5	%
Plus: Revenue from acquired companies for the comparable prior year period				21,477
Less: Revenue from divested companies for the comparable prior year period				(17,857	)
Organic Revenue	$	401,950	$	388,409		3.5	%