BRAC business helps boost NCI's first-quarter numbers
First-quarter 2011 topped $150 million, a 31 percent increase over 2010
- By David Hubler
- May 05, 2011
NCI Information Systems Inc. reported first-quarter 2011 revenue of $150.2 million, all organic, an increase of 31 percent over first-quarter 2010 revenue of $115.0 million, according to a company earnings statement released May 4.
The company attributed the year-over-year increase primarily to growth in the Base Realignment and Closure contracts, as well as network management and analysis services under new and existing contracts.
Operating income for the first-quarter 2011 increased 10.1 percent to $9.7 million, or 6.5 percent of revenue, compared with $8.8 million, or 7.7 percent of revenue, for the three months that ended March 31, 2010.
The year-over-year decrease in operating margin resulted from increases in materials and subcontractor labor costs, which typically carry lower margins than the company's direct labor costs, according to the NCI statement.
Operating margin was also affected by $200,000 in costs incurred related to the acquisition of AdvanceMed Corp., which was completed April 1.
Net income for the first quarter was $5.7 million, compared to $5.5 million for the same period in 2010. Diluted earnings per share were 41 cents per share for the first quarter of 2011 compared with 39 cents per share for the first quarter a year ago.
NCI reported total backlog at March 31, 2011 of $1.2 billion, of which $227 million was funded. This compares with total backlog of $1.3 billion as of December 31, 2010, of which $302 million was funded.
First quarter net bookings totaled $77 million, equating to a book-to-bill ratio of 0.5:1.
Among new business awards and additional tasking in the first quarter:
- A prime position on the Justice Department's seven-year, $1.1 billion Information Technology Support Services-4 (ITSS-4) contract.
- A prime position on the Army’s five-year, $892 million Total Engineering and Integration Services, TEIS III, contract.
- A $26.5 million, four-and-a-half-year task order to continue and expand IT and program management support for the Air National Guard;
- An $11 million, five-year task order under the GSA Alliant contract to continue NCI's support of the 81st Medical Group's Air Education and Training Command.
"With one quarter behind us, 2011 is shaping up to be a year of both promise and challenge," NCI's President Terry Glasgow said in the statement. "We enter the second quarter with more than $500 million of bids submitted and awaiting award. In addition, we have submitted four prime GWAC and [indefinite-delivery, indefinite-quantity] bids awaiting award with a combined ceiling value of more than $50 billion.”
Glasgow said NCI’s acquisition of AdvanceMed provides substantial momentum to deliver strong operational results in 2011. “We believe our future holds tremendous promise as our team executes in a challenging federal procurement environment," Glasgow added.
NCI Information Systems Inc., of Reston, Va., ranks No. 72 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.