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Versar, Inc. (NYSE MKT: VSR) today announced its financial results for the third quarter of its fiscal year 2012 and nine months ended March 30, 2012.
Revenue for the third quarter of fiscal year 2012 was $25.7 million, a decrease of 18% compared to revenue of $31.5 million reported in the same quarter of fiscal year 2011. The decrease in revenue was primarily attributable to reduced activity from our projects in Iraq and lower revenue from our Environmental Services business segment.
The Company achieved gross profit in the current quarter of $4.3 million, or 17% of revenue, compared to gross profit of $4.2 million, or 13% of revenue in the third quarter last year. Quarter over quarter operating income improved 59% to $2.2 million compared to $1.4 million in the third quarter of last year. The improved margins were largely due to higher margin revenue in this year’s third quarter compared to last year and continued focus on controlling fixed costs and reduced G&A. Selling, general and administrative expenses were $2.1 million, a decrease of 13% compared to the corresponding period last year.
Versar recorded net income of $1.0 million, or $0.10 per basic and diluted share for the third quarter of fiscal year 2012, compared to net income of $0.6 million, or $0.07 per basic and diluted share, in the third quarter of fiscal 2011. Net income was negatively affected by a write-off of $0.5 million for the unreserved balance of a financing receivable we deemed to be uncollectible during the current quarter related to a long delayed green-energy development project.
Versar closed the third quarter of fiscal year 2012 with funded backlog of $97 million, an increase of 37% compared to approximately $71 million at April 1, 2011. This increase reflected the award of several large long term contracts and was indicative of the high quality proposals that were developed as a result of proposal preparation staff training and business development investments earlier this fiscal year.