NCI, Inc. (NASDAQ:NCIT), a leading provider of information technology (IT), professional services and solutions to U.S. Federal Government agencies, today announced financial and operating results for the second quarter ended June 30, 2012.
NCI’s second quarter revenue exceeded management’s guidance range issued last quarter by $1.2 million. Earnings per share exceeded the high end of guidance by $0.03.
Second Quarter 2012 Results:
For the second quarter of 2012, NCI reported revenue of $91.2 million compared with second quarter 2011 revenue of $161.2 million, a decrease of 43.4%. The year-over-year decrease in revenue was due to the decline of approximately $36 million of BRAC-related and other non-core program revenue; a net decrease of approximately $28 million in core revenue as a result of reductions of scope of work, the expiration of task orders and contracts, and certain lost contract recompetes; and lower revenue under our PEO Soldier contract of approximately $6 million, among other factors.
Operating income for the second quarter of 2012 was $2.9 million, down from $6.9 million for the second quarter of 2011, due primarily to the lower revenue base.
Operating margin for the second quarter of 2012 was 3.1% compared with operating margin of 4.3% for the second quarter of 2011. Operating margin for the second quarter of 2012 declined due to reduced absorption of indirect costs on the lower revenue base and reduced profitability on our PEO Soldier bridge contract.
Net income for the second quarter of 2012 decreased to $1.5 million from $3.9 million in the second quarter of 2011. The decrease in net income year-over-year is attributable to the factors affecting operating income, and a higher effective income tax rate. Diluted earnings per share for the second quarter of 2012 were $0.11 compared with $0.28 in the second quarter of 2011.
NCI reported total backlog at June 30, 2012 of $825 million, of which $196 million was funded. This compares with total backlog of $903 million at March 31, 2012, of which $203 million was funded.