##### 



Exhibit 99.1
 SM&A Reports Financial Results for Q1 2008
 
    
    Revenues Increase 7.6%; highest first quarter revenues in Company history;
    
    Program Services revenues increase 31.5%;
    
    SM&A Reviews Strategic Operating Plan to Enhance Shareholder Value
 Contact:
    
    SM&A:
Jim Eckstaedt
Chief Financial Officer
(949) 975-1550
    
    Investor Contact:
Lytham Partners, LLC
Joe Diaz, Robert Blum
(602) 889-9700
    
    Investor Contact:
MacKenzie Partners
Amy Bilbija
(650) 798-5206
 WINS
 
 Competition Management:




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##### 



Program Services:  th
  Strategic Advisors:
   Revenue by Market Vertical:




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##### 



SG&A Expenses:
   Stock Buyback:
 Acquisitions:




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##### 



Evolution of SM&A:
       2008 Guidance:




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##### 



Disclosure of Certain Financial Information
 Conference Call and Webcast:  www.smawins.com www.smawins.com
 Note: A slide presentation providing selected financial data discussed during the conference call
can be accessed at www.smawins.com by clicking on the Investor Relations tab.
 About SM&A:
 HTTP://WWW.SEC.GOV




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##### 



Some statements made in this news release refer to future actions, strategies, or results that
involve a number of risks and uncertainties. Any number of factors could cause actual results to
differ materially from expectations, including a shift in demand for SM&As Competition Management
and Program Services; fluctuations in the size, timing, and duration of client engagements; delays,
cancellations, or shifts in emphasis for competitive procurement activities; declines in future
defense, information technology, homeland security, new systems, and research and development
expenditures aerospace and defense industries along with System Integration and Information
Technology industries, and other risk factors listed in SM&As SEC reports, including the report on
Form 10-K for the year ended December 31, 2007. Actual results may differ materially from those
expressed or implied. The company does not undertake any duty to update forward-looking
statement




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##### 



SM&A
CONDENSED CONSOLIDATED BALANCE SHEETS
 March 31, 2008
    
    
    December 31, 2007(unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    3,251
    
    
    $
    5,422Investments
    
    
    7,455
    
    
    
    10,610Accounts receivable, net
    
    
    22,373
    
    
    
    18,171Prepaid expenses and other current assets
    
    
    2,772
    
    
    
    2,011Total current assets
    
    
    35,851
    
    
    
    36,214Fixed assets, net
    
    
    3,306
    
    
    
    3,399Goodwill
    
    
    8,374
    
    
    
    8,278Intangibles, net
    
    
    1,781
    
    
    
    1,892Other assets
    
    
    1,369
    
    
    
    895$
    50,681
    
    
    $
    50,678LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    2,156
    
    
    $
    1,925Accrued compensation and related benefits
    
    
    4,992
    
    
    
    3,508Accrued contingent consideration
    
    
    
    
    
    
    1,750Other current liabilities
    
    
    138
    
    
    
    127Total current liabilities
    
    
    7,286
    
    
    
    7,310Other liabilities
    
    
    748
    
    
    
    785Total liabilities
    
    
    8,034
    
    
    
    8,095Commitments and contingenciesStockholders equity:Preferred stock
    
    
    
    
    
    
    Common stock
    
    
    2
    
    
    
    2Additional paid-in capital
    
    
    46,048
    
    
    
    45,450Treasury stock
    
    
    (2,540
    )
    
    
    (1,506
    )Accumulated deficit
    
    
    (863
    )
    
    
    (1,363
    )Total stockholders equity
    
    
    42,647
    
    
    
    42,583$
    50,681
    
    
    $
    50,678




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##### 



SM&A
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 Three Months EndedMarch 31,2008
    
    
    2007Revenue
    
    $
    25,423
    
    
    $
    23,624Cost of revenue
    
    
    15,685
    
    
    
    14,417Gross margin
    
    
    9,738
    
    
    
    9,207Selling, general and administrative expenses
    
    
    8,957
    
    
    
    6,894Operating income
    
    
    781
    
    
    
    2,313Interest income, net
    
    
    95
    
    
    
    143Income before income taxes
    
    
    876
    
    
    
    2,456Income tax expense
    
    
    376
    
    
    
    1,005Net income
    
    $
    500
    
    
    $
    1,451Net income per share:Basic
    
    $
    0.03
    
    
    $
    0.08Diluted
    
    $
    0.03
    
    
    $
    0.08Shares used in calculating net income per share:Basic
    
    
    18,990
    
    
    
    18,609Diluted
    
    
    19,100
    
    
    
    18,800




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##### 



Exhibit A
 SM&A
DILUTED EPS NON-GAAP RECONCILIATION
 Three Months EndedMarch 31,
    
    
    March 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2007Per
    
    
    
    
    
    
    Per
    
    
    
    
    
    
    Per$
    
    
    Share
    
    
    $
    
    
    Share
    
    
    $
    
    
    ShareDiluted EPS (as reported)
    
    
    
    
    
    $
    0.03
    
    
    
    
    
    
    $
    0.08
    
    
    
    
    
    
    $
    0.05PPI earn-out
    
    $
    0.9
    
    
    
    0.03
    
    
    $
    
    
    
    
    
    
    
    $
    1.0
    
    
    
    0.03Proxy contest cost
    
    
    0.1
    
    
    
    0.00
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Company-wide offsite
    
    
    1.1
    
    
    
    0.03
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Myers retirement
    
    
    
    
    
    
    
    
    
    
    0.5
    
    
    
    0.02
    
    
    
    
    
    
    
    Myers legal fees
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    0.01
    
    
    
    
    
    
    
    Management transition
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    0.01Subtotal
    
    $
    2.1
    
    
    
    0.06
    
    
    $
    0.7
    
    
    
    0.02
    
    
    $
    1.4
    
    
    
    0.04Non-GAAP EPS (as adjusted)
    
    
    
    
    
    $
    0.09
    
    
    
    
    
    
    $
    0.10
    
    
    
    
    
    
    $
    0.09Tax rate
    
    
    
    
    
    
    42.9
    %
    
    
    
    
    
    
    40.9
    %
    
    
    
    
    
    
    45.5
    %Shares used in calculating net
income per diluted Share
    
    
    
    
    
    
    19,100
    
    
    
    
    
    
    
    18,800
    
    
    
    
    
    
    
    19,113




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##### 



Exhibit B
 SM&A
SG&A NON-GAAP RECONCILIATION
 Three Months EndedMarch 31,
    
    
    March 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2007$
    
    
    %
    
    
    $
    
    
    %
    
    
    $
    
    
    %Revenue
    
    $
    25.4
    
    
    
    100
    %
    
    $
    23.6
    
    
    
    100
    %
    
    $
    24.1
    
    
    
    100
    %SG&A (as reported)
    
    
    9.0
    
    
    
    35.2
    %
    
    
    6.9
    
    
    
    29.2
    %
    
    
    8.0
    
    
    
    33.2
    %Less:PPI Earn-Out
    
    
    0.9
    
    
    
    3.4
    %
    
    
    
    
    
    
    0.0
    %
    
    
    1.0
    
    
    
    4.0
    %SG&A less PPI earn-out
    
    
    8.1
    
    
    
    31.8
    %
    
    
    6.9
    
    
    
    29.2
    %
    
    
    7.0
    
    
    
    29.2
    %Less:Stock-based compensation
    
    
    0.4
    
    
    
    1.7
    %
    
    
    0.4
    
    
    
    1.7
    %
    
    
    0.4
    
    
    
    1.8
    %Proxy contest cost
    
    
    0.1
    
    
    
    0.2
    %
    
    
    
    
    
    
    0.0
    %
    
    
    
    
    
    
    0.0
    %Company-wide offsite
    
    
    1.1
    
    
    
    4.3
    %
    
    
    
    
    
    
    0.0
    %
    
    
    
    
    
    
    0.0
    %Myers retirement
    
    
    
    
    
    
    0.0
    %
    
    
    0.5
    
    
    
    2.1
    %
    
    
    
    
    
    
    0.0
    %Myers legal fees
    
    
    
    
    
    
    0.0
    %
    
    
    0.2
    
    
    
    0.8
    %
    
    
    
    
    
    
    0.0
    %Management transition
    
    
    
    
    
    
    0.0
    %
    
    
    
    
    
    
    0.0
    %
    
    
    0.4
    
    
    
    1.6
    %Subtotal
    
    $
    1.6
    
    
    
    6.2
    %
    
    $
    1.1
    
    
    
    4.7
    %
    
    $
    0.8
    
    
    
    3.4
    %Non-GAAP SG&A (as adjusted)
    
    $
    6.5
    
    
    
    25.6
    %
    
    $
    5.8
    
    
    
    24.5
    %
    
    $
    6.2
    
    
    
    25.8
    %