Versar, Inc. (NYSE Amex: VSR) announced third quarter financial results for fiscal year 2010 for the period ending March 26, 2010. Gross revenue for the third quarter of fiscal year 2010 was $24,355,000 a decrease of $7,496,000 (24%) from the third quarter of fiscal year 2009.
The year over year decrease was due to a decline in the Company’s International Program Management business segment and continued budget shortfalls in state and municipal agencies that affected our Compliance and Environmental business segment. The Company’s Professional Services business segment revenue grew 8%, from $3,050,000 to $3,293,000 over the same period. The National Security business segment revenue grew 62%, from $2,539,000 to $4,113,000, driven by the acquisition of Personal Protection Systems, Ltd (PPS) on January 5, 2010.
The Company reported a loss of $1,517,000 or ($0.16) per share compared to a profit of $1,125,000, or $0.12 per share, in the third quarter of fiscal year 2009. During the third quarter of fiscal year 2010 the Company incurred expenses of $1,269,000 attributed to the Cost Reduction Plan reported in early February 2010 and the acquisition expenses related to the previously discussed PPS acquisition and the ADVENT Environmental, Inc. acquisition on March 17, 2010. The Cost Reduction Plan was implemented to lower the Company’s overall cost structure and will generate savings of approximately $3.3 million per year. The two acquisitions are forecasted to contribute $17 million of revenue in their first full year with Versar.
Gross revenue for the first nine months of fiscal year 2010 was $73,456,000, a decrease of $11,360,000 (13%) compared to $84,816,000 for the first nine months of the prior fiscal year. The Company reported a loss of $1,580,000, or ($0.17) per share, for the first nine months of fiscal year 2010 compared to net income of $2,214,000, or $0.24 per share, during the same period in 2009. The decrease in net income was due to the same factors described above.