Mr. Van Vleet continued, “As a result of a well-executed acquisition and integration strategy, we have quickly created and enabled a highly capable network intelligence business. Our scale and ability to provide specialized cyber-security solutions places us in a position to compete for a wide range of programs, in some instances as a prime contractor.”
Mr. Van Vleet concluded, “We are executing well and addressing a full spectrum of today’s urgent challenges in the ISR market. We are proud and pleased to have developed a true technology leadership position in each of our businesses. We are dedicated to maintaining this core strategic and competitive advantage in order to provide our customers with the tools that enable them to anticipate and address the challenges and threats of tomorrow. ”
Fiscal Year 2010 Results
Revenues for fiscal 2010 grew 11% to $225,229,000 compared to fiscal 2009 revenues of $202,615,000. Operating income for fiscal 2010 declined 3% to $22,152,000 compared to $22,870,000 in fiscal 2009. However, non-GAAP operating income, which excludes the impact of acquisition-related expenses grew by 14% to $26,662,000. Net income for fiscal year 2010 was $13,223,000 or $0.98 per diluted share, compared to the year-ago level of $14,529,000 or $1.10 per diluted share. Net income on a non-GAAP basis for fiscal year 2010 was $15,931,000 or $1.18 per diluted share compared to the year-ago level of $14,826,000 or $1.12 per diluted share.A detailed reconciliation between GAAP and non-GAAP results is provided in a table following the GAAP financial statements below. Forward Looking Guidance Based on a strong order backlog, good core program visibility, and an expectation for a continued favorable funding environment for its products and services, Applied Signal Technology currently anticipates revenue growth in fiscal 2011 and believes that fiscal 2011 revenues are likely to be in the $250 million to $270 million range. The Company also anticipates that operating income, as measured on a GAAP basis, is likely to be in the $22 million to $25 million range but excluding any costs related to exploring strategic alternatives. In addition, a fiscal 2011 effective tax rate of between 37-39% is anticipated, assuming the Federal R&D tax credit will be extended.