Versar Inc. Announces FY 2010 Financial Results
Versar, Inc. (NYSE Amex: VSR) today announced financial results for fiscal year 2010. Gross revenue for fiscal year 2010 was $100,763,000, a decrease of 10% from the $112,196,000 reported for fiscal year 2009 as the wind down of Department of Defense work in Iraq and the weakened State and Municipal economy affected results. Versar reported 10% revenue growth in its Professional Services segment attributable to additional work obtained from the U.S. Army and 37% revenue growth in its National Security segment driven by the acquisition in January, 2010 of Professional Protection Systems, Ltd. and the Tooele Chemical Weapon Destruction Project. Versar’s Program Management segment revenue declined 19% as increased U.S. construction revenue was not enough to offset the decline in Iraq quality assurance support. The Compliance and Environmental business segment revenue declined 12% as the three months of new incremental revenue from the Advent Environmental acquisition did not fully offset a weak domestic economy and sluggish state and municipal work.
Versar recorded a net loss of $2,294,000, or ($0.25) per share, on a fully diluted share basis, for fiscal year 2010, compared to after tax net income of $3,169,000 or $0.35 per share for the previous fiscal year. The yearly loss was the firm’s first since 2003 and was heavily driven by a $1 million restructuring charge taken in the previous quarter as Versar reduced headcount, closed two domestic offices, and accounted for transaction costs associated with the Company’s two acquisitions completed during the year. Further losses were attributed to project losses in our U.S. construction business, Chemical Lab renovations in our National Security Segment, and higher than anticipated legal costs associated with an ongoing construction claim.
Versar completed fiscal year 2010 with a funded backlog of $78 million which is 37% higher than the $57 million reported at the end of fiscal year 2009. New Orders have continued to be very strong in the first two months of FY 2011 and Versar finished August with a funded backlog estimated at $94 million, 74% higher than the $54 million at the end of August 2009 and up 20% from the end of Fiscal Year 2010.
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