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Versar, Inc. (NYSE Amex: VSR) today announced financial results for the fiscal year ended July 1, 2011. Gross revenue for fiscal year 2011 was $137.6 million, an increase of 37% from gross revenue of $100.8 million reported in fiscal year 2010. The $137.6 million gross revenue is the highest ever reported in the 42 year history of Versar.
The revenue growth can be primarily attributed to a full year of benefit from the Company’s two previously reported acquisitions that were completed during the third quarter of FY 2010 and the Tooele Chemical Demilitarization project that fully ramped up during the second quarter of fiscal year 2011. From a business segment standpoint, the ADVENT acquisition and improved overall performance resulted in 91% revenue growth in Versar’s Compliance and Environmental business segment. The National Security business segment reported year over year revenue growth of 158% driven by the Tooele project and the PPS acquisition. The Company’s Professional Services business segment revenue grew 10% organically and the Program Management business segment revenue was down less than 2% as a result of declining Title II engineering work in Iraq, largely offset by new awards in Iraq and Afghanistan.
Versar recorded net income of $3.4 million or $0.37 per share on a fully diluted weighted average shares outstanding basis for fiscal year 2011, as compared to a net loss of $2.3 million, or ($0.25) per share, for fiscal year 2010. Fiscal year 2011 gross profit of $14.3 million was up 138% compared to last year’s gross profit of $6.0 million. Utilization rates improved throughout the entire Company and every business segment reported positive gross profit.
Fiscal year 2011 Selling, General and Administrative costs (SG&A) were down 7% as compared to last year as cost reduction efforts and efficiency improvements were realized even as revenue grew by 37%.