NCI President Terry Glasgow will stay on board through the end of the year and continue to serve on the board of directors. CFO and senior vice president move up the chain of command.
Terry Glasgow will step down as president of NCI Inc. on Dec. 31 but will remain on the company's board of directors and provide continuing advisory services to NCI as a paid consultant, the company announced Aug. 4.
News of the leadership shuffle followed release of the company’s second-quarter 2011 earnings report, which showed that operating income decreased 24.1 percent compared to the second quarter of 2010.
Glasgow will be replaced by Brian Clark, NCI executive vice president and chief financial officer, effective Jan. 1, 2012.
NCI also named Marco de Vito chief operating officer, effective immediately. He had been senior vice president of corporate development.
“I am proud of the accomplishments we have achieved over the last seven years and feel confident that we will achieve great things as we move forward,” Glasgow said in the statement.
“We have selected experienced senior leaders in Brian and Marco, and I am confident that they will provide the leadership necessary to meet our corporate objectives. Over the next several months, I will work with each of them and our executive leadership team to ensure an effective transition,” he added.
Glasgow will provide consulting services to NCI as needed at a fixed rate of $10,000 per month for a year starting Jan. 1, 2012, according to an 8-K filing with the Securities and Exchange Commission.
He will receive an award of 30,000 options to purchase NCI stock at the fair market value and an award of 30,000 shares of restricted stock, and he also is eligible for an additional bonus upon award of certain customer contracts, according to the SEC filing statement.
NCI reported $6.9 million in operating income for the second quarter 2011, or 4.3 percent of revenue, compared to $9.1 million, or 7.2 percent of revenue, for the second quarter that ended June 30, 2010.
The company reported revenue of $161.2 million for the quarter, an increase of 27.4 percent over second-quarter 2010 revenues of $126.6 million. Organic revenue growth was 16.6 percent.
NCI said the year-over-year increase in revenue was attributable primarily to the acquisition of AdvanceMed Corp. as well as the growth of the Army Program Executive Office, Base Realignment and Closure, and Air Force Network Centric Solutions contracts.
NCI reported $1.3 billion in total backlog at June 30, $254 million of which was funded. This compares with total backlog of $1.2 billion at March 31, 2011, with $227 million funded.
Second-quarter net bookings totaled $26 million.
For the six months that ended June 30, 2011, NCI revenue increased 29 percent to $311.4 million from $241.6 million for the same period in the prior fiscal year.
Net income for the first six months of 2011 was $9.6 million compared with net income for the same period last year of $10.9 million.
The report cited factors affecting operating income, higher interest expense due to the acquisition of AdvanceMed, and a higher effective income tax rate during the period as the primary reasons for the six-month decrease in net income.