FINANCE

DRC reports third-quarter declines

But bright spot includes record contract wins

Dynamics Research Corp. reported declines across both revenue and earnings in its most recent quarter.

The company also took a $36.6 million non-cash goodwill impairment charge in the quarter ended Sept. 30 because of a significant decline in the company’s stock during the second quarter of 2012.

Revenue declined in the quarter to $76.8 million, compared to $96.4 million in the same quarter last year. Adjusted earnings for the quarter were $8.9 million versus $11.3 million a year ago.

But when the goodwill charge is included, the company had a loss of $20.6 million in the quarter.

There were bright spots in the quarter. The company had $125 million in new business contract awards, a quarterly record, said Jim Regan, DRC’s chairman and CEO. Of that total $76 million of the contract wins were in the health care market, which DRC has picked as a growth area for the company.

The largest single award was a $50 million contract with the Food and Drug Administration to support its scientific computing environment.

“We are continuing to identify opportunities despite market challenges,” Regan said in a statement.

The company’s guidance for all of 2012 is revenue in the range of $317 million to $321 million, and earnings per share of 76 cents to 78 cents.

In 2011, the company reported $322.6 million in revenue and earnings per share of $1.12.

 

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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