Prime fed contracts spur NCI second-quarter growth

Spurred by prime federal contracts, NCI’s revenues rose 17 percent in the second quarter of 2010 to $126.6 million compared to $108.5 million for the second quarter of 2009.

Operating income for the quarter was $9.1 million, compared to $8.7 million for the second quarter of 2009, the company reported in ts second quarter report Aug. 4.

Organic growth for the quarter was 13 percent.

Net income for the second quarter was $5.4 million compared to $5.1 million for the same period in 2009. Diluted earnings per share for the second quarter were $0.39 per share, compared to $0.37 per share for the comparable period in 2009.

For the first six months of 2010, NCI reported revenue of $241.6 million, compared to $213.5 million for the first six months of 2009, for a growth rate of 13 percent and an organic growth rate of 10 percent.

Operating income for the first six months of 2010 was $17.9 million, or an operating margin of 7.4 percent compared to $16.6 million, or an operating margin of 7.8 percent for the first six months of 2009.

Net income for the first six months of 2010 was $10.9 million, compared to $9.8 million for the same period in 2009.

NCI reported total backlog at the end of the second quarter of $1.424 billion, of which $230 million was funded backlog. This compares to total backlog of $1.120 million as of June 30, 2009, which included $205 million in funded backlog.

During the second quarter of 2010, 86 percent of NCI’s second quarter revenue came from prime contracts. Time-and-materials contracts accounted for 55 percent, cost-plus contracts accounted for 15 percent and fixed-price contracts accounted for 30 percent.

About 90 percent of revenue came from the Defense Department and intelligence community customers, and 10 percent from federal civilian agencies, NCI reported.

In the statement NCI President Terry Glasgow reported that NCI has been named to the Rapid Response Program 3^rd Generation contract from the Army Communications-Electronics Command.

“This multiple award IDIQ contract is for a five-year period of performance and has a ceiling price of $16.4 billion,” he said.

“On a year-over-year basis, we continue to see solid progress of our top-line with reported revenue growth of approximately 17 percent for the second quarter of 2010,” said NCI Chairman and CEO Charles Narang in the statement.

“Though there are challenges in our marketplace, we believe that NCI is uniquely positioned to continue supporting our customers’ critical missions,” Narang added.