* Q4 net 31 cents vs. estimate 32 cents
* Contract delays cited
* Company to focus on higher-growth defense sectors
* Shares fall after bell
Walt Havenstein, the former BAE Systems Plc executive who was named SAIC chief executive last year, said the company would boost investment in higher growth areas such as cyber security and energy efficiency, as its core federal services business was expected to see flat or declining growth.
He also said SAIC, which noted stiffer competition for federal contracts, would pursue acquisitions that expand its capabilities in sectors that are growing.
"The industry can no longer rely on a rising tide to lift all boats." Havenstein said during a conference call.
Defense companies are looking to focus on in-demand niche technologies as the Obama administration scales back traditional weapons programs and focuses more intensely on containing costs.
A longer federal decision-making process has constrained contract awards in recent quarters. For example, SAIC said decision delays and award protests put off nearly $1 billion of planned bookings it expected to win in the fourth quarter.
SAIC, which provides consulting and technical support for intelligence gathering, homeland security and defense systems, expects diluted per-share profit from continuing operations to rise 8 percent to 14 percent over the next year, while revenue growth excluding acquisitions grows 3 percent to 6 percent.
On Tuesday, the company said its previous long-term performance goals, which called for annual diluted per share earnings growth of 11 percent to 18 percent and internal revenue growth of 6 percent to 9 percent, were no longer appropriate.
Pacific Crest Securities analyst Erik Olbeter said new business awards in the fourth quarter, which totaled $1.6 billion, was short of his expectations and showed the slowdown in government spending in intelligence was "far more acute than anyone expected."
"Clearly 2011 is a reset year for the company," Olbeter said. "They need to make significant reinvestments in a number of business lines" to restart growth in 2012.
Net income was $123 million, or 31 cents a share, for the fourth quarter ended Jan. 31, up from $120 million, or 29 cents a share, a year earlier.
Analysts expected profit of 32 cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 7 percent to $2.68 billion, compared with $2.69 billion expected by analysts.
The company posted results after markets closed. SAIC shares fell as much as 6 percent after hours from their close of $18.98 on the New York Stock Exchange. (Reporting by Karen Jacobs; editing by Andre Grenon)
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