Friday, September 13, 2013
SAIC divorces itself. One of the largest US Defense Contractor breaks up this month and the street is once again skeptic about WSJ reporting and how modern history might white washing the CityTime Scandal. WSJ skims some facts in its article yesterday, interviewing John Jumper CEO of SAIC. http://online.wsj.com/article/SB10001424127887323864604579067353151539122.html. The street is calling you out!
WSJ: Why are you breaking up the company?
The street: Because we have been caught cheating a lot and our last DPA (deferred prosecution agreeemnt) almost disbarred us, but we are good now. SAIC ranks #9 in contractor misconduct where 13 accounts of bad behaviour are outlined.
WSJ: How hard is it to create two public companies?
The street: A team of lawyers and accountants have been extremely busy analyzing tax ramifications, declaring dividends, selling assets, acquiring companies, reworking loans and laying off employees to make it look like a good idea. For a minute the SEC seemed to be finally be questioning SAIC's financial reporting, but that seems to have gone away. Maybe the expresso version of this quarters shocking financial results will send a small tremor. http://www.sec.gov/Archives/edgar/data/353394/000119312512302700/filename1.htm
WSJ: As CEO, what were your biggest challenges in managing the split?
The street: believes SAIC has laid off 5,000 not 1,000 according to there annual report they are now 37,000 employees not the 41,000 employees. Johnnie some street followers actually read the reports :-).
http://www.sec.gov/Archives/edgar/data/353394/000119312513356120/d592646dex991.htm (37,000 employees on Sept 4th) "our nearly 37,000 employees remain excited and committed to the planned separation "
http://www.sec.gov/Archives/edgar/data/353394/000119312512492141/d449226dex991.htm (40,000 employees on Dec 5th 2012)
"of our 40,000 employees to the highest level of customer service,"
Walt Haverstein talks to employees about City Time December 2011
http://www.sec.gov/Archives/edgar/data/1336920/000119312511157210/dex991.htm (OMG 43,000 employees at June 2, 2011 just days after new indictments)
SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 43,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $11.1 billion for its fiscal year ended January 31, 2011. For more information, visit www.saic.com. SAIC: From Science to Solutions®
WSJ: Since SAIC is a major NSA contractor, how has the Snowden incident affected you and the cybersecurity industry?
"Mr. Jumper: For this industry, the Snowden event is extremely disturbing. We're all appalled. It's very difficult to control when somebody makes an individual decision to violate their public trust. He went through the same clearance process that we all go through in businesses like this.
The Snowden incident will become a case study in our training."
The street: of course this is disturbing John J! How about Tricare sloppy dataloss...where the IT DUDE left 4.9 government employee records on tape media in the trunk of SAIC employee car and it was lost! Why is SAIC always surprised, last to know? http://www.mysanantonio.com/news/military/article/Tricare-patient-data-exposed-2194067.php
WSJ: You spent nearly four decades in the military, but lacked full-time corporate experience when SAIC hired you. What's been the hardest thing to grasp as a public-company CEO?
The street: Not exactly so...read the resume, John has a far longer relationship with SAIC sitting on their BOD as of June 2007 and was the
the US Airforce General Chief of Staff point for sexual assaults at AirForce Academy see pbs article March 26, 2003. John, we know you ain;t no porn star, but not sure this was ever cleanup.
Posted by Suzannah B. Troy artist at 9/13/2013 01:04:00 PM