Versar, Inc. (NYSE Amex: VSR)
today announced its financial results for its second quarter fiscal year 2011, that ended December 31, 2010. Gross revenue for the second quarter achieved a company record $41,908,000, a 72% increase from the $24,387,000 reported in the second quarter of fiscal year 2010. Revenue was positively affected by an $8.4 million one-time equipment purchase related to the company’s Chemical Munitions Destruction Project near Tooele, Utah. Net income for the second quarter of fiscal year 2011 was $924,000, or $0.10 per share compared to a loss of $300,000 or ($0.03) per share for the same period last year. Second quarter FY 2011 operating income of $1,491,000 was approximately $2 million higher than the $510,000 loss reported during the same period last year.
Gross revenue for the first six months of fiscal year 2011 was $71,204,000, an increase of $22,103,000 (45%) compared to $49,101,000 in the first six months of last fiscal year. The Company reported net income of $1,463,000, or $.16 per share, for the first six months of fiscal year 2011 compared to loss of $63,000, or ($0.01) per share, during the same period in fiscal year 2010.
In addition to the Tooele project, year on year revenue growth was driven by the two acquisitions completed last year, which have added over $11 million of revenue during the first half of FY 2011 and improved performance from the Company’s Compliance and Environmental and National Security segments.
Gross Profit for second quarter of FY 2011 of $3,486,000 was 102% higher than the $1,728,000 reported during the same period last year. All of the Company’s business segments contributed positive operating income and gross profit. The improved profit margin also benefited from the Company’s ongoing cost reduction efforts as selling, general and administrative (SG&A) expenses decreased by 11% during the second quarter of FY 2011 compared to same period last year despite revenue growing by 72%.