NCI hits record $581M in 2010 revenue

NCI Information Systems Inc. reported record revenue of $581 million in 2010 compared to $469 million a year ago, for an organic revenue growth rate of 22 percent.

NCI also hit record revenue for the fourth quarter, racking up $171 million compared to $125 million for the fourth quarter of 2009, a growth rate of 37 percent over the quarter a year ago.

Operating income for the 2010 quarter was $11.8 million, compared to $11.5 million for the fourth quarter of 2009. Net income was $6.9 million, compared to $6.7 million for the same period in 2009, according to the company’s latest earnings statement.

NCI reported operating income for 2010 was $39.8 million, or an operating margin of 6.8 percent, compared to $37.6 million, or an operating margin of 8.0 percent, for 2009.

Organic revenue growth in 2010 was 22 percent, said NCI President Terry Glasgow in the announcement.

That marked the sixth consecutive year of double-digit organic revenue growth since NCI became a public company for an average of about 16 percent over that period of time, he said.

Approximately 91 percent of NCI revenue in the fourth quarter of 2010 was derived from prime contracts, the company reported. Time-and-materials contracts accounted for 49 percent, cost-plus contracts accounted for 12 percent and fixed-price contracts accounted for 39 percent.

Customer mix for the fourth quarter reflects about 94 percent of revenue from the Defense Department and intelligence customers, and 6 percent from federal civilian agencies, NCI said.

Charles Narang, NCI's chairman and CEO, called 2010 a very successful year.

“Most importantly, we met our long-standing objective and crossed over the $500 million in revenue mark,” he said. “With this foundation in place, we are now focused on reaching $1 billion in revenue within the next three to five years.”

NCI Information Systems Inc., of Reston, Va., ranks No. 71 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.