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ANDOVER, Mass., July 28, 2010 (GLOBE NEWSWIRE) -- Dynamics Research Corporation (Nasdaq:DRCO), a leading provider of innovative management consulting, engineering, technical and information technology services and solutions to federal and state governments, today announced operating results for the second quarter ended June 30, 2010.
The Company reported income from continuing operations for the second quarter of 2010 of $2.6 million, or $0.26 per diluted share, up 18.6 percent from $2.2 million, or $0.22 per diluted share, for the second quarter of 2009. Revenue for the second quarter of 2010 was $65.3 million compared with $68.1 million for the same period in 2009. Excluding the expiration of restricted 8(a) contracts assumed with the Kadix acquisition in 2008, second quarter 2010 revenue for the Federal business was down 0.8% compared with the same period a year ago.
For the six month period ended June 30, 2010 income from continuing operations was $5.3 million, or $0.53 per diluted share, compared with $4.1 million, or $0.42 per diluted share, for the same period in 2009. For the six months ended June 30, 2010 revenue was $133.9 million compared with $135.3 million for the same period in 2009. Excluding the expiration of restricted 8(a) contracts assumed with the Kadix acquisition in 2008, revenue for the Federal business during the six month period rose 3.4% compared with the same period a year ago.
"We remain well positioned in growth sectors of the Federal market and are aggressively pursuing new business in these target markets, as evidenced by $63 million in new business contract awards for the first half of the year and $377 million in submitted new business bids awaiting award – a record for DRC. Although top line growth is lower than we had anticipated primarily due to insourcing and a delay in contract awards, the prospects for accelerated revenue growth are strong. We also are pleased with the nearly one-and-a-half points of operating margin expansion reported this quarter versus a year ago," said Jim Regan, DRC's chairman and chief executive officer. "We continued to generate solid positive cash flow, as our federal business receivables days outstanding dropped to 65, down another three days from the first quarter of 2010."