Recompetes, fewer awards drag down ATSC revenues

ATS Corp. saw revenues decline in 2010 overall as well as during the fourth quarter of the year.

ATSC reported revenue of $116.7 million for the year, a decrease of $2 million, or 1.7 percent, compared to revenue of $118.7 million for 2009. Fourth quarter revenue of $27.7 million represented a decrease of 5.1 percent over fourth quarter revenue of $29.2 million in 2009, according to the company’s latest earnings statement.

Operating income for the fourth quarter was $3.5 million and net income was $2.2 million.

ATSC said its quarter over quarter decline in revenue was primarily driven by the successful transition of several recompeted, new contracts awarded to ATSC, but at lower initial revenue levels.

Revenue from civilian government contracts of $55.3 million in 2010 was in line with 2009.

Revenue from commercial contracts increased $1.5 million to $12.3 million, or 13.8 percent, and revenue from Fannie Mae, a government sponsored enterprise, increased $3.8 million to $15.5 million, or 32.5 percent.

But those increases were offset by a $7 million decline in defense and homeland security government contracts and state and local contracts to $33.6 million, due to several factors.

The company also experienced a decrease in scope on several contracts, the largest of which were subcontracts with the Coast Guard and Air Force as end customers. Finally, state and local revenue declined due to two large development contracts nearing completion.

Operating income for 2010 was $10.5 million, an increase of 8.9 percent over operating income of $9.6 million in 2009. Net income for the year was $7.1 million compared to net income of $3.1 million in 2009.

Total backlog as of Dec. 31, was $236.1 million (of which $36.7 million was funded), an increase of 41.5 percent over total backlog of $166.8 million at the end of 2009.

Net new bookings in 2010 totaled approximately $186 million and fourth quarter net new bookings totaled $45.2 million.

New awards received during the fourth quarter included a $19.5 million, five-year contract from the Homeland Security Department’s Science and Technology division to support technologies for detecting, tracking, classifying and responding to border threats; and a five-year $22.7 million award from a civilian agency to provide comprehensive information technology services.

Additionally, ATSC was one of 14 awardees that can compete for upcoming tasks on an Army indefinite delivery, indefinite quantity recruiting and retention services contract that has a ceiling value of $238 million over a five-year term.