HANOVER, Md., April 30, 2013 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation (Nasdaq:KEYW) today announced financial results for its first quarter ended March 31, 2013. First quarter 2013 revenue was $77.9 million, an increase of 40% versus the first quarter 2012. First quarter 2013 GAAP loss per share was $0.06 versus earnings per share of $0.01 in first quarter 2012. Non-cash amortization associated with acquisition related intangibles reduced Q1 2013 EPS by $0.11. Adjusted EBITDA (as described below) for Q1 2013 was $6.8 million or 8.7% of Q1 2013 revenue. In Q1 2013, KEYW received new funding actions totaling more than $90 million in value and ended the quarter with 1,137 employees.
"KEYW is off to a strong start in 2013 despite the uncertainties presented by the current government budget turmoil. We continue to invest in accelerating our commercial product efforts which, as noted below, also contributed to higher operating expenses," commented Leonard Moodispaw, CEO and President of KEYW. "Year to date, we have added 23 new hires to our commercial business and we now have 65 full-time staff members, including Chris Fedde, the former CEO of SafeNet, Inc. who will provide valuable guidance to both our government and commercial products businesses (see our press release also dated April 30, 2013 for additional details). 'Project G' is being installed in customer networks in Q2 2013; we are pleased to be bringing this transformational capability to market."
As mentioned, revenue for Q1 2013 increased 40% versus Q1 2012 from $55.8 million to $77.9 million. The main drivers for the increase were the Q4 2012 acquisitions of Poole & Associates and Sensage and organic growth in both segments. Consolidated gross margin decreased from 34% in Q1 2012 to 31% in Q1 2013 due to the acquisition of Poole, which generated a significant portion of revenue through the use of lower margin subcontractors. Operating expenses increased $6.8 million versus Q1 2012 and increased as a percentage of revenue from 24% in Q1 2012 to 26% in Q1 2013. The increase was due primarily to increased investment in our commercial cyber product efforts, higher facilities costs and higher stock compensation expenses.