NCI, Inc. (NASDAQ: NCIT), a leading provider of information technology (IT), engineering, logistics, and professional services and solutions to U.S. Federal Government agencies, today announced that it has postponed release of its financial results for the fourth quarter and full year 2012 and its conference call to discuss these results originally scheduled for today at 5:00 p.m. ET. The postponement will allow the company and its independent auditors to complete their work on the financial statements and audit.
The company expects to report additional goodwill impairment, which would represent a non-cash, after-tax accounting charge to the company’s financial statements and will not affect adjusted diluted earnings per share (EPS), cash flows, liquidity, or future operating activities. Excluding the anticipated accounting charge and certain other unusual, infrequent, or non-recurring items, NCI anticipates that full year 2012 revenue and adjusted diluted EPS will meet or exceed previously issued revenue and EPS guidance ranges of $364 million to $370 million and $0.46–$0.48, respectively.
At September 30, 2012, the company had remaining goodwill totaling $57.5 million. U.S. generally accepted accounting principles require companies to perform an annual test for goodwill impairment. As part of the goodwill impairment analysis initiated in the third quarter of 2012, resulting in a non-cash, after-tax charge of $55.6 million, the company and its auditors determined that additional goodwill impairment was appropriate to be measured—and recorded—in the fourth quarter 2012. The completion of this analysis will determine the final amount of the impairment to be recognized.
Due to the delay, NCI will announce and schedule a conference call when the financial results for the fourth quarter and full fiscal year 2012 are finalized.About NCI, Inc.: NCI is a leading provider of information technology (IT) and professional services and solutions to U.S. Federal Government agencies. Our award-winning expertise encompasses areas critical to our customers’ mission objectives, including enterprise systems management; network engineering; cybersecurity and information assurance; software development and systems engineering; program management, acquisition, and lifecycle support; engineering and logistics; health IT and informatics; and training and simulation. Headquartered in Reston, VA, NCI has approximately 2,300 employees at nearly 100 locations worldwide. For more information, visit our website at www.nciinc.com or email firstname.lastname@example.org. Forward-Looking Statement: Statements and assumptions made in this news release that do not address historical facts constitute “forward-looking” statements that NCI believes to be within the definition in the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties, many of which are outside of our control. Words such as “may,” “will,” “intends,” “should,” “expects,” “plans,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “opportunity,” or the negative of these terms or words of similar import are intended to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the following: our dependence on our contracts with Federal Government agencies, particularly within the U.S. Department of Defense, for substantially all of our revenue; a reduction in the overall U.S. Defense budget; volatility in spending authorizations for Defense- and Intelligence-related programs by the Federal Government or a shift in spending to programs in areas in which we do not currently provide services; Federal Government shutdowns (such as that which occurred during the Federal Government’s 1996 fiscal year); other potential delays in the Federal Government appropriations process or budgetary cuts resulting from congressional committee recommendations or automatic sequestration under the Budget Control Act of 2011; risk of contract performance or termination; failure to achieve contract awards in connection with recompetes for present business and/or competition for new business; adverse results of Federal Government audits of our Government contracts; Government contract procurement risks (such as bid protests, small business set asides, etc.) and termination risks; competitive factors, such as pricing pressures and competition to hire and retain employees (particularly those with security clearances); Federal Government agencies awarding contracts on a technically acceptable/lowest price basis in order to reduce expenditures; failure to successfully identify and integrate future acquired companies or businesses into our operations, to realize any accretive or synergistic effects from such acquisitions, or to effectively integrate acquisitions appropriate to the achievement of our strategic plans; general economic conditions in the United States, including conditions that result from terrorist activities or war; and material changes in laws or regulations applicable to our businesses, particularly legislation affecting (i) Government contracts for services, (ii) outsourcing of activities that have been performed by the Government, (iii) Government contracts containing organizational conflict of interest (OCI) clauses, (iv) delays related to agency-specific funding freezes, (v) competition for task orders under Government-Wide Acquisition Contracts (GWACs), agency-specific Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, and/or schedule contracts with the General Services Administration, and (vi) our own ability to achieve the objectives of near-term or long-range business plans, including internal systems failures. These and other risk factors are more fully discussed in the section titled “Risks Factors” in NCI's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and, from time to time, in other filings with the SEC, such as our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. Any projections of revenue, margins, expenses, earnings, tax provisions, cash flows, benefit obligations, and share repurchases; any statements of the plans, strategies, and objectives of management for future operations; and the execution of cost-reduction programs, restructuring, and integration plans are also subject to factors that could cause actual results to differ materially from anticipated results. The forward-looking statements included in this news release are only made as of the date of this news release, and NCI undertakes no obligation to publicly update any of the forward-looking statements made herein, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise.