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Science Applications
International Corporation
Fiscal Year 2008 Annual Report
A
w w w . s a i c . c o m
Message to Stockholders
As we enter our 40th year, our company is
stronger than ever. Our success is a testament to
our employees and their dedication to solving
our customers’ most critical problems.
Building for Continued Growth. Through the efforts of our employees,
in fiscal year 2008, we accelerated organic growth and expanded
operating margin, while building a strong foundation for continued
growth. Moreover, revenues for fiscal 2008 were $8.94 billion, up 11
percent from fiscal 2007; operating income for fiscal 2008 was $666 million,
up 16 percent over the previous fiscal year. These results were achieved
while laying the foundation for continued growth in future years, as we
continue to win larger programs. During the year, we won seventeen $100
million plus contracts with an expected value above $8 billion. One of
the more significant contracts we won last year involves managing the
supply chain for chemicals and packaged petroleum, oils, and lubricants
for the Department of Defense. Under an important command, control,
communications, computers, and intelligence program we won in fiscal
2008, we are expanding our support of the Space and Naval Warfare
Systems Command. Our customers are increasingly recognizing the
capability Science Applications International Corporation has in systems
engineering and integration. So, while we achieved terrific results in fiscal
2008, we also were successful in winning contracts that give us confidence
for continued growth in the future.
Strategic Acquisitions. During fiscal 2008, we completed key strategic
acquisitions to expand our opportunities in the areas of energy,
infrastructure, and the environment. We acquired Benham Investment
Holdings, LLC, an engineering and life-cycle technology implementation
firm that offers a full range of capabilities in consulting, engineering,
architecture, and design/build, including specialized expertise in energy
management, alternative fuels, process engineering, and industrial
CEO Ken Dahlberg
manufacturing. We also acquired Scicom
Technologies Private Limited, headquartered
in New Delhi, India, which provides on-site and
offshore hydrocarbon exploration product
development services and technology
consulting. Additionally, we effectively sold our
joint venture interest in AMSEC LLC and received
in exchange the technology and engineering
business divisions of AMSEC that we integrated
into our company following the transaction.
New Chief
Operating Officer.
Larry Prior became
our new chief
operating officer,
effective October
1, 2007. He brings
the right experience
and great leadership
ability for this key job,
qualities we saw in
his successful leadership in his previous position
as president of our Intelligence, Security, and
Technology Group. Larry brings exceptional
focus on business fundamentals and execution.
Larry now is leading our efforts to transition
our company to more robust financial and
procurement systems, as well as leading
“Project Alignment.”
COO Larry Prior
clarifying our employees’ responsibilities
and providing rewarding career paths. To
make these changes, we have undertaken an
initiative called Project Alignment. This is a
major, multiyear effort to bring together many
of the functions of human resources, finance,
information technology, and other functional
areas into a shared-services organization for the
entire enterprise.
Enduring Culture and Values. While our initial
public offering in October 2006 ushered in a
new era for us, marking a major change in our
capital structure, our entrepreneurial culture
and our values remained strong. Our financial
results and our prospects for the future show
that our culture is alive and well. Our company
was recently recognized by the Ethisphere
Institute for having one of the top overall ethics
programs among government contractors.
We were honored to receive this recognition,
but we also understand that we must remain
vigilant to sustain our ethical standards and
our entrepreneurial spirit in all of our business
activities. Providing solutions to our customers’
toughest problems and dealing with matters of
global importance are our historical legacy and
will be our future.
Project Alignment. Across the enterprise,
we are taking a number of steps to improve
our performance and competitiveness, while
Ken Dahlberg
CEO and Chairman of the Board
1
Financial Highlights
Revenues Millions
2008 $8,935
2007 $8,061
2006 $7,518
Operating Income Millions
Stockholders’ Equity Millions
2008 $666
2007 $572
2006 $470
2008 $1,901
2007 $1,536
2006 $2,807
$9,000
$700
$3,000
$6,000
$3,000
$350
$2,000
$1,000
$0
’04
’08
’04
’08
$0
$0
’04
’08
Diluted Earnings per Share
2008 $1.00
2007 $1.07
2006 $2.58
Net Income Millions
2008 $415
2007 $391
2006 $927
$2.50
$2.00
$1.50
$1.00
$.50
$0
’04
’08
$900
$600
$300
$0
’04
’08
For Revenues and
Operating Income, all
years presented have
been restated to present
Telcordia Technologies, Inc.,
the divested operations
of AMSEC LLC and
ANXeBusiness Corp. as
discontinued operations.
(Diluted Earnings Per Share
and Net Income reflect
gains from discontinued
operations, including
Telcordia in 2006.)
2
Solutions for Government and Commercial Customers
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 44,000 employees serve customers in
the Department of Defense, the intelligence community, the U.S.
Department of Homeland Security, other U.S. government
civil agencies, and selected commercial markets.
Our line management team for FY08: Group Presidents (above from left)
Deborah Alderson, Joseph Craver III, Charles Koontz, and Stuart Shea
3
National Security
National Security
Software engineer Charlie Ragusa with displays from SAIC’s
Software engineer Charlie Ragusa with displays from SAIC’s
Air Mission Trainer, which immerses pilots in a dynamic
Air Mission Trainer, which immerses pilots in a dynamic
synthetic environment with more than 20 geographic
synthetic environment with more than 20 geographic
locations and 40 airfields.
locations and 40 airfields.
Since its founding in 1969, SAIC
has supported some of the U.S.
military’s toughest missions –
meeting critical challenges in
national defense, intelligence,
and homeland defense.
Deputy Program Manager Tom Johnson, seated,
and hardware engineer Pedro Cabrera work on the
Common Driver Trainer, a simulator used to train
Stryker drivers.
Lifesaving Vehicles for Soldiers and Marines. SAIC is playing a key role
in rapidly delivering the high-priority, lifesaving Mine Resistant Ambush
Protected (MRAP) vehicles to soldiers and Marines in Iraq and Afghanistan.
In addition to providing integration support for MRAP command, control,
communications, computers, intelligence, surveillance, and reconnaissance
systems, SAIC and its team also provide in-theater logistics and systems
engineering support for the many different MRAP configurations.
Modeling, Simulation, and Training. To better prepare Stryker brigades
deploying to Iraq and Afghanistan, SAIC operates the U.S. Army’s Battle
Command Training Center at Fort Lewis, Wash., which provides live, virtual,
and constructive simulation-based training. SAIC also provides mission
support activities to deployed units through a combination of secure
voice and video-teleconferencing technology and assists in identifying
and sharing critical lessons learned from units in the field and returning
from overseas.
Biometric Solutions. Since the beginning of conflict, adversaries have at-
tempted to mask their true identities with disguises and false papers. With
N a t i o n a l S e c u r i t y 5
Energy
Energy
SAIC Canada’s Bill Wong managed the
SAIC Canada’s Bill Wong managed the
program that created the first residential
program that created the first residential
solar community in North America.
solar community in North America.
the Biometrics Automated Toolset (BAT), SAIC
has helped transform the science of biometrics
into a solution that helps enable soldiers to con-
clusively distinguish friend from foe. Deployed in
Iraq, Afghanistan, and other parts of the world,
the U.S. Army’s BAT is a portable, networked
system that uses fingerprints, iris patterns, and
facial geometry to uniquely identify individuals.
SAIC has been a key integrator, developer, and
operational supporter of BAT since 2003. Under
a new contract, SAIC is expanding its role in pro-
viding in-country Army and Marine Corps units
with dedicated 24/7 support, including system,
database, and network administration, as well as
on-site training and logistics administration.
Logistics and Product Support. A leader in
integrated supply and logistics support services
for the U.S. government, SAIC manages the
supply chain of chemicals and packaged petro-
leum, oils, and lubricants for the Department of
Defense (DoD). For another important project,
SAIC is providing engineering and integration
services to upgrade the Air Force’s air traffic
control radio systems.
Global Positioning System Support.
SAIC leads the systems engineering and
integration effort necessary to develop, operate,
and maintain the U.S. Global Positioning
System. Some of the services SAIC provides
include integration management, program
certifications, and risk management for the
Global Positioning Systems Wing, a joint service
effort directed by the U.S. Air Force.
Predator Operations Centers. SAIC also
provides 24/7 technical support to U.S. Air
Force Predator Operations Centers. For the
newest version of the unmanned Predator
– which carries Hellfire missiles and multiple
GBU-12 laser-guided bombs – the SAIC team
engineered technical solutions and installed
audio and video equipment between the
operations center and ground control stations.
SAIC’s work provided aircrew members and
decision-makers with real-time video for
hundreds of combat missions.
Senior systems engineer James
Moratis supports the Analytical
Laboratory System (ALS), a
C-130 air transportable system
that can analyze chemical and
biological warfare agents. The
ALS is designed to establish
communications through the
Unified Command Suite to local,
state, and federal laboratories.
6 N a t i o n a l S e c u r i t y
9
Understanding the impact of
energy on citizens and businesses,
SAIC energy experts have helped
oil and gas customers reduce costs,
streamline operations, and increase
effectiveness.
Project Manager Lanny Herrel and his team
provided turnkey services for a distillate
hydrotreater unit that produces ultra-low
sulfur diesel at Holly Corp.’s Woods Cross
Refinery in Utah.
Renewable Energy. SAIC played a major role in helping a small
Canadian community become the first solar community in North America.
The 52-home Drake Landing Solar Community in Okotoks, Alberta, uses
a solar-thermal design concept that SAIC Canada helped to create. The
system uses the summer sun to heat water and stores it underground for
reuse in the winter. Currently, these homes derive about 80 percent of
their heat in the winter from solar energy collected during the summer.
The remaining percentage is produced from conventional natural gas. In
addition to solar collectors on the garages, each home has a discrete solar
collection system on its roof that provides about 60 percent of household
hot water. Recognized as the “greenest community in Canada, maybe
the world” by the Canadian prime minister, Drake Landing was built with
the help of a team from both the public and private sectors, and partially
funded by the government.
Leading the Way in Energy Efficiency. To boost its design/build and
energy capabilities, SAIC acquired Benham, which is helping customers
in a variety of industries reduce energy demand and improve energy
efficiency. For one industrial customer, Boral Bricks, Benham is taking
an energy-intensive brickmaking process and making it more efficient
through the use of otherwise wasted gas from
a nearby landfill, burning locally available waste
peanut hulls for energy, and designing new
burner technologies.
In addition, SAIC’s analysts and engineers
have helped evaluate hundreds of energy
efficiency programs for clients, including the
states of New York, Wisconsin, and Oregon.
Alternative Fuels. Biofuels have great potential
to lessen our dependency on fossil fuels, while
providing an environmentally friendly renew-
able energy source. SAIC is helping lead the
way in this market through the Lake Erie bio-
fuels facility project, providing comprehensive
design/build services for a state-of-the-art plant
in Pennsylvania. With construction complete
and the plant startup in process, the Lake Erie
biofuels facility is designed to produce biodiesel
from multiple feedstock sources.
Digital Oilfields. As mature energy fields
decline and new discoveries become harder
to find and more challenging to operate, oil
and gas companies are seeking new ways
to maximize the value of their assets. SAIC
is helping oil and gas customers design and
implement digital oilfields, using technology to
measure, model, and predict the behavior of the
producing asset to make better decisions about
increasing oil and gas production.
To enhance the services it delivers to
energy customers, SAIC acquired Scicom
Technologies Private Limited, which provides
on-site and offshore hydrocarbon exploration
product development services. Headquartered
in New Delhi, India, Scicom helps position SAIC
to become a major provider of data-centric
customer services in the upstream oil and
gas market.
Project Manager
Rich Mitchell and
his Benham team
helped design
and build a new
energy-efficient
manufacturing
plant in Terre
Haute, Ind., for
Boral Bricks, the
largest manufac-
turer and distribu-
tor of clay brick in
the United States.
8 E n e r g y
E n e r g y 9
Environment
Environment
Senior scientist Bill Samuels led an
Senior scientist Bill Samuels led an
SAIC team that developed ICWater,
SAIC team that developed ICWater,
an incident command tool that helps
an incident command tool that helps
government agencies better track
government agencies better track
the sources of contamination to
the sources of contamination to
public water supplies.
public water supplies.
SAIC’s environmental work spans a wide
variety of programs for both government
and commercial clients, such as working
with the Climate Registry to help develop
protocols for a common greenhouse gas
emissions reporting system.
Environmental Services. For more than 10 years, SAIC has provided the
full range of environmental services to the Air Force Center for Engineering
and the Environment (AFCEE). The AFCEE recently awarded SAIC an eight-
year prime contract to administer, coordinate, and technically support
environmental, military construction, military family housing, and facility
sustainment, restoration, and modernization programs of interest to the
government at locations in the United States and overseas.
In addition, the NASA Glenn Research Center in Cleveland, Ohio,
awarded SAIC a contract to provide environmental and safety support
services to facility-wide operations. SAIC has been on site supporting this
center for more than 10 years at its Lewis Field in Cleveland and Plum
Brook Station in Sandusky, Ohio. SAIC’s environmental efforts include
support for demolishing, constructing, and rehabilitating 65 buildings
at the two locations under a 20-year site master plan. SAIC also will help
NASA design new buildings with Leadership in Energy and Environmental
Design (LEED) green building standards. LEED is the U.S. Green Building
Council’s standard for green building design and maintenance.
E n v i r o n m e n t 11
To help predict weather patterns,
SAIC supports the National Oceanic
and Atmospheric Administration
(NOAA) Tropical Atmosphere
Ocean (TAO) Program. The TAO
array consists of approximately
70 moored buoys in the tropical
Pacific Ocean, telemetering
oceanographic and meteorological
data to shore in real time via the
Argos satellite system.
the company sent two of its climate change
experts to the United Nations Climate Change
Conference in Bali, Indonesia, in December 2007,
as part of the California delegation. There, they
gave presentations on voluntary carbon offsets
in the U.S. market and the standardization of
greenhouse gas inventory standards across
local and international governments. This
effort would require development of computer
standards for sharing inventory information
without requiring translation among monitoring
organizations.
SAIC was selected by the U.S. Environmental
Protection Agency’s Climate Change Division for
a program for technical and outreach support
services for domestic and global climate
initiatives and global climate change programs.
In addition, SAIC provides a wide range
of climate change services, including policy
development, strategic planning, energy
management, and infrastructure planning,
to help government and commercial clients
address these issues.
Courtesy NOAA’s National Data Buoy Center
Protecting Drinking Water. To better
protect the nation’s drinking water, SAIC helped
develop an incident command tool called
ICWater that calculates time of travel and
concentration of contaminants affecting public
water supplies. The tool is designed to make
critical information rapidly available to incident
commanders who would direct first responders
during a chemical, biological, or radiological
attack on a drinking water source. ICWater also
offers a forensics capability to track down the
sources of contamination.
Climate Change Services. The Climate
Registry is not only a client; SAIC joined it
this year as a founding member. The Climate
Registry is a collaboration among 39 U.S. states
and the District of Columbia, six Canadian
provinces, two Mexican states, and several
North American Indian tribes to measure and
publicly report greenhouse gas emissions in a
common manner.
SAIC is also a member of the California
Climate Action Registry, and, as a member,
12 E n v i r o n m e n t
Critical Infrastructure
Critical Infrastructure
Lab Manager Lloyd Thomas supports SAIC’s All-Terrain VACIS
Lab Manager Lloyd Thomas supports SAIC’s All-Terrain VACIS
inspection system, a mobile system that extends inspection
inspection system, a mobile system that extends inspection
capabilities to hostile or difficult-to-access areas.
capabilities to hostile or difficult-to-access areas.
Whether it’s protecting ports and borders,
managing and securing IT systems, or
building test facilities for NASA missions,
SAIC provides technical and engineering
support to a wide range of government
and commercial customers.
Another version of SAIC’s VACIS, the
P7500 inspection system, scans up to
150 cargo containers per hour.
Protecting Commerce While Moving It Quickly. SAIC is a leading
provider of effective, compact, nonintrusive cargo inspection systems.
Hundreds of our VACIS systems have successfully performed around the
world. The technology, which includes SAIC’s vanguard VACIS P7500 X-ray
inspection system, is helping U.S. Department of Homeland Security (DHS)
authorities scan high volumes of cargo containers for weapons, explosives,
and other threats before they enter U.S. borders. The system produces
high-resolution digital images of the contents of containers for online
analysis. A single system can scan up to 150 containers per hour with
minimal impact on the flow of commerce.
Improving Aviation Safety. SAIC is helping the Federal Aviation Admin-
istration deploy a crucial component of the next-generation air transporta-
tion system. The technology, Automatic Dependent Surveillance-Broad-
cast, will help change the nation’s air traffic control system from one that
relies on radar technology to a system that uses precise location data from
the global satellite network. The goal is to improve aviation safety, capac-
ity, and efficiency by providing pilots and air-traffic controllers with reliable,
accurate, real-time surveillance information for aircraft and surface vehicles.
Facilities for Moon and Mars Missions.
To support development of spacecraft for the Orion and Constellation
programs to send people to the moon and then
to Mars, NASA selected SAIC to design, engineer,
and build two testing facilities. The two facilities
include the highest intensity acoustic facility of
its size and one of the largest, most powerful
vibration test facilities ever built. SAIC also is
designing a new high-speed data acquisition
system to collect, correlate, and analyze testing
data from these two facilities.
Cybersecurity. For years, SAIC has helped
government and commercial customers protect
their information technology (IT) systems from
cyber-threats. SAIC’s patent-pending cyberde-
fense trainer is a self-contained, cost-effective
training system that enables IT personnel to re-
hearse on training systems that present realistic,
live attack scenarios against hosts and network
devices that mirror their own IT infrastructure.
Integrated Services Management Center.
Located in Oak Ridge, Tenn., SAIC’s Integrated
Services Management Center provides IT
enterprise management services to support
federal agency and commercial customers
worldwide.
For example, SAIC has provided help desk
support for Regal Entertainment Group since
December 2000. With more than 600 theaters
across the United States and more than 6,000
screens, Regal is the largest theater chain in
America. SAIC’s flexibility and scalability have
helped Regal through five successful mergers.
Today, Regal enjoys a fully standardized point-
of-sale environment featuring state-of- the-art
technology.
Service Desk Manager
Susan Haynor is
responsible for
managing and
delivering service
desk IT support for
Regal Entertainment,
the largest theater
chain in America.
14 C r i t i c a l I n f r a s t r u c t u r e
C r i t i c a l I n f r a s t r u c t u r e 15
Health
Health
Deputy Director Anil Patri, left, and scientist
Deputy Director Anil Patri, left, and scientist
Jiwen Zheng support NCI’s Nanotechnology
Jiwen Zheng support NCI’s Nanotechnology
Characterization Laboratory, which helped
Characterization Laboratory, which helped
develop the first reference standards for nano-
develop the first reference standards for nano-
scale particles used in biomedical research.
scale particles used in biomedical research.
From cancer research to vaccine
development to electronic records
management, SAIC helps local, state,
federal, and international public
health organizations secure the
health of the nation and the world.
Joy Beveridge manages an NCI pilot program
exploring ways to deliver the latest research-
based cancer treatment closer to the homes
of rural and inner-city patients.
Biomedical Research. SAIC scientists work for the National Cancer
Institute at Frederick (NCI-Frederick) to assist in important discoveries
and develop new cures for cancer and AIDS. SAIC-Frederick Inc., a wholly
owned subsidiary of SAIC, has operated NCI’s national laboratory for
cancer and AIDS research since 1995.
In 2007, SAIC researchers developed and manufactured prototypes
of three new drugs for ovarian cancer; developed and manufactured a
drug to make melanoma (skin cancer) and other cancers more responsive
to chemotherapy; and discovered new markers for prostate and breast
cancers that can help predict genetic risk, suggest new treatment
approaches, and help identify gene mutations that cause these diseases.
In addition, SAIC researchers discovered a set of genes that helps
explain why some people infected with the AIDS virus get sick right away
while others can live symptom-free for 10 years or more. This discovery
could focus aggressive treatment on patients with the vulnerable gene set,
while sparing those with the protective genes from the aggressive
regimen and its side effects.
H e a l t h 17
Research assistant Myla
Spencer of SAIC-Frederick
sets up a high-throughput
DNA sequencing reaction in
the Laboratory of Molecular
Technology at the National
Cancer Institute at Frederick.
This highly efficient method
of DNA sequencing is used to
identify genetic changes that
can cause cancer.
Malaria Vaccine. According to worldwide
estimates, more than 1 million people – mostly
infants, young children, and pregnant women –
die from malaria each year. To assist the National
Institute of Allergy and Infectious Diseases
(NIAID), SAIC established a virtual company
consisting of more than 20 subcontractors to
manufacture, test, and obtain regulatory ap-
proval for human trials of two malaria vaccines.
SAIC has supported NIAID’s work since 2000.
Connecting Caregivers. For nearly 20 years,
SAIC has supported the health care mission of
the Department of Defense around the world,
helping to improve the efficiency, delivery, and
quality of care to military personnel and veter-
ans. For example, SAIC is helping to enable the
exchange of medical records between DoD and
the Department of Veterans Affairs (VA) medi-
cal facilities. SAIC’s work on the Bidirectional
Health Information Exchange (BHIE) enables the
secure exchange of health data for patients who
receive care at both DoD and VA health centers.
Providers in both agencies may access and
view data on patient demographics, allergies,
laboratory results, radiology reports, outpatient
pharmacy requirements, and discharge sum-
maries. Through our work on the BHIE Inpatient
Data Sharing Initiative, providers also have
access to patient history and physical reports,
operation reports, and inpatient consults, result-
ing in improved care for wounded warriors.
Protecting the Food Supply. SAIC helped to
develop a methodology that the U.S. Depart-
ment of Agriculture’s Food Safety and Inspec-
tion Service is proposing to use as the basis
for its new Public Health Risk-Based Inspection
system. Upon implementation, the methodolo-
gy will allow the agency to attribute food-borne
illness caused by a variety of microbial patho-
gens to specific types of food products. The
proposed new inspection system is designed to
improve the agency’s ability to prevent food-
borne illness in the United States and help limit
the need for food product recalls.
18 H e a l t h
Technology
and Innovation
Systems engineer Christy O’Loughlin led an SAIC
team that developed a hand-held biometrics
system for the Coast Guard to better identify those
attempting to enter the United States illegally.
From national security to
medical research, SAIC
employees use their domain
expertise and innovation to help
customers solve their biggest
technical challenges.
SAIC employees demonstrate TAC-BIO, a small,
innovative, low-power biosensor they are helping
the U.S. Army develop.
Low-Cost, Low-Power Biological Detector. Working with the U.S.
Army’s Edgewood Chemical Biological Center (ECBC), SAIC is helping
develop a tactical biological (TAC-BIO) detector that drastically reduces
the cost, size, and power requirements of the bioagent detection units
currently available. TAC-BIO was used to collect data for a DHS background
testing campaign and also is being tested as part of the Expeditionary
Biological Detection Advanced Technology Demonstration. Historically,
the requirements for this kind of system have been outside the boundaries
for low-cost, low-power, lightweight detectors that could be deployed as
disposable detection devices, according to the ECBC. TAC-BIO offers the
potential for a detect-to-warn capability against biological aerosol attacks.
Biometrics at Sea. The U.S. Coast Guard now has the ability to better
identify immigrants attempting to enter the United States illegally, thanks
to SAIC’s software integration and biometrics expertise. When a Coast
Guard cutter intercepts a boat, Coast Guard personnel electronically
fingerprint and digitally photograph each migrant using a commercial off-
the-shelf hand-held device and check the information against the US-VISIT
database. The system was deployed successfully for a pilot program in the
Mona Pass – a 90-mile stretch of water between the Dominican Republic
and Puerto Rico – where the Coast Guard encounters about half of those
it interdicts attempting to enter the country
illegally. As a result, the SAIC-created Biometrics-
at-Sea: Mona Passage Proof of Concept won the
Coast Guard’s prestigious 2007 Captain Niels P.
Thomsen Innovation Award.
Tsunami Detection Buoy. Since the
devastating Sumatra tsunami in December
2004, SAIC has been developing and testing
a dependable system that meets international
requirements. SAIC was licensed by NOAA to
build Deep-ocean Assessment and Reporting
of Tsunami (DART) systems to provide
early warning detection of tsunamis and is
scheduled to deliver the first tsunami
detection buoy to Australia’s Bureau of
Meteorology.
Cutting-Edge Medical Research.
SAIC-Frederick operates the National Cancer
Institute’s Core Genotyping Facility, which has
identified new genetic markers for prostate
cancer and breast cancer. These discoveries
are among the first major cancer findings to
come from the Human Genome Project, which
was completed in 2003. The lab is scanning
the entire human genotypes of thousands of
men and women with cancer and thousands of
control individuals to zero in on gene variants
associated with the diseases. The program
aims to identify genetic alterations that make
people susceptible to prostate and breast
cancer. The project takes advantage of data
from the Human Genome Project and new
knowledge of human genetic variation. SAIC
researchers supporting this project are using
the latest advances in ultra-high-throughput
genotyping.
Dr. Jack Collins displays a computer system he
developed for the National Cancer Institute that
uses a series of graphic processors for tackling
drug design problems, such as screening hundreds
of thousands of candidate drug molecules. Each
candidate drug now can be screened in minutes
instead of the hour it used to take using a more
expensive computer cluster.
20 T e c h n o l o g y a n d I n n o v a t i o n
T e c h n o l o g y a n d I n n o v a t i o n 21
SAIC in the Community
Senior network engineer Scott Kennedy works
with students in the Cyber Defense Challenge.
Business unit General Manager Bill Gurley stands beside
the Saturn V rocket he helped preserve in Huntsville.
Across the company, our employees actively participate in many
community activities, including programs to encourage science
and technology students, preserve historical landmarks, promote
diversity, and support our troops and their families.
Teaching Cybersecurity and Robotics. Because SAIC is first and
foremost a science and engineering company, we do all that we can to
promote these technical disciplines to future generations. For example,
we recently hosted the Cyber Defense Challenge, a new competition to
inspire students to pursue careers in science, technology, engineering,
and mathematics. Sponsored by the San Diego Chapter of the National
Defense Industrial Association, the three-month-long event featured teams
of computer science students from San Diego area high schools and
universities who tested their ability to defend against today’s cyberattacks.
In Virginia, SAIC sponsors students participating in robot-building con-
tests that team high school students with industry professionals to solve
engineering design problems in an intense and competitive environment.
Restoring the Saturn V Rocket. Huntsville,
Ala., is home to the world’s first Saturn V rocket,
which languished outdoors for 28 years at the
U.S. Space & Rocket Center and had become
home to several varieties of nesting birds and
at least one family of raccoons. To conserve
and restore this historic workhorse of the U.S.
space program, SAIC’s Bill Gurley led a successful
fundraising campaign, co-chaired with former
Apollo moonwalk astronaut Buzz Aldrin.
Today, the restored giant is housed in a new
68,200-square-foot environmentally controlled
building. Owned by the Smithsonian Institute,
this Saturn V rocket was designed and built
in Huntsville by Marshall Space Flight Center
engineers as the Pathfinder predecessor to
all Saturn V vehicles that were built and flown
during the Apollo missions.
Supporting Small Business and Diversity.
The Small Business Administration presented
SAIC with the Dwight D. Eisenhower Award for
Excellence in the research and development
category, recognizing our commitment to
using small businesses as subcontractors
and suppliers. The White House Initiative for
Historically Black Colleges and Universities
(HBCUs) recognized SAIC for its outstanding
work in providing subcontracting opportunities
to HBCUs.
Saluting Our Troops. When the Washington
Redskins kicked off their 2007/2008 season, SAIC
was there, kicking off a season-long campaign
to honor and support America’s military men
and women.
SAIC joined the Redskins in Operation Salute
Our Troops to continue the company’s long-
standing support of the men and women of
the Armed Forces. A component of this effort,
Charity Challenge, helped draw attention to
charities dedicated to helping the troops.
Students compete in a robotics competition.
Administrative assistant Vanessa Landry hands out
American flags at a Washington Redskins game.
22
23
Directors
K.C. Dahlberg
CEO and Chairman of the
Board
A.T. Young
Executive Vice President,
Lockheed Martin Corp. (Ret.)
Lead Director
F.A. Cordova
President, Purdue University
W.H. Demisch
Financial Consultant
J.A. Drummond
Vice Chairman, BellSouth
Corp. (Ret.)
J.J. Hamre
CEO and President, Center
for Strategic & International
Studies
M.E. John
Vice President, Sandia
National Laboratories (Ret.)
A.K. Jones
University Professor,
Computer Sciences,
University of Virginia
J.P. Jumper
General, United States Air
Force (Ret.)
H.M.J. Kraemer, Jr.
Former Chairman, President
and Chief Executive Officer,
Baxter International, Inc.
E.J. Sanderson, Jr.
Retired Oracle Corporation
Executive
L.A. Simpson
President and CEO of Capital
Operations, GEICO Corp.
24
Stockholder Services
Annual Report and Form 10-K
Questions concerning accounts for registered
shareholders and other stock matters –
including name or address changes, stock
transfers, option exercises, or other services
– should be directed to SAIC’s stock plan
administrator and transfer agent:
BNY Mellon Shareowner Services
U.S. telephone: 866-400-SAIC
International telephone: 201-680-6625
www.bnymellon.com/shareowner
Stockholder Relations
Questions from stockholders, analysts, and
others can be directed to:
Stuart Davis, Senior Vice President,
Investor Relations
SAIC
1710 SAIC Drive MS 1-14-1
McLean, VA 22102
Telephone: 703-676-2283
Fax: 703-676-6344
E-mail: stuart.davis@saic.com
The SAIC 2008 Annual Report and Form
10-K are available from the SAIC Web site at
www.saic.com. An Adobe Acrobat Portable
Document Format (PDF) can be downloaded
from this location.
SAIC on the Internet
Information on SAIC’s services and capabilities
can be found at the SAIC home page on the
Internet (www.saic.com). Financial results,
corporate news releases, and other SAIC
information also can be found at this Internet
address.
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
San Diego, Calif.
Produced by SAIC Communications and Corporate Creative Services
Statements in this Annual Report other than historical data and information may constitute forward-looking statements that involve risks and uncertainties. A number of factors
could cause our actual results, performance, or achievements or industry results to be very different from the results, performance or achievements expressed or implied by
such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year
ended January 31, 2008, and in such other filings that the Company makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to
place undue reliance on such forward-looking statements, which speak only as of the date hereof.
The SAIC logo and From Science to Solutions are registered trademarks of Science Applications International Corporation in the United States and/or other countries.
Fortune 500 is a registered trademark of Time Inc. in the United States and/or other countries.
VACIS is a registered trademark of Science Applications International Corporation in the United States and/or other countries.
DART is a registered trademark of NOAA’s National Data Buoy Center in the United States and/or other countries.
©2008 Science Applications International Corporation. All rights reserved. Some photographs have been digitally altered. Printed on recycled paper.
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