NCI revenues, earnings fall in third quarter
Company takes a goodwill charge of $55.6M
- By Mark Hoover
- Nov 08, 2012
NCI Inc. reported some tough times in its latest quarter with revenue dropping 33 percent and operating income falling significantly as well.
NCI reported revenue for the quarter ended Sept. 30 at $88.5 million, a drop from 2011’s $132 million.
The company pointed to a number of factors for the drop:
- Work reductions, task order and contracts expirations, and lost recompetes.
- Ending of Base Realignment and Close-related and other non-core programs.
- Decrease of revenue from its Program Executive Office Soldier program.
The company reported an after-tax goodwill impairment charge of $55.6 million.
Brian J. Clark, NCI president, said the goodwill charge reflected the "continued turmoil in the federal market and the fact that NCI’s market value has declined further—remaining well below the net asset value of the company for the past couple of quarters.”
Net income was $1.8 million, excluding the impairment charge, compared to $3.5 million for the quarter last year. If the impairment charge is considered, the comany had a loss of $55.2 million for the quarter.
At September 30, 2012, NCI reported total backlog of $910 million; $249 million of this figure was funded. Last quarter, the company’s total backlog was $825 million, of which $196 million was funded.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at email@example.com, or connect with him on Twitter at @mhooverWT.