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On May 19, 2009,
reported that its Q3 FY09 net income grew 10.3%, helped by lower expenses and one-time gains. Net income increased to $7.60 million, or $0.19 per share, from $6.89 million, or $0.17 per share, in Q3 FY08. Loss from continuing operations included a pre-tax gain of approximately $1.70 million related to the buyback of $10.00 million aggregate principal amount of the company's senior subordinated notes due 2015. On a non-GAAP basis, income from continuing operations was $5.01 million, or $0.13 per share, compared to $5.55 million, or $0.14 per share, in the year-ago quarter. The quarter results beat the consensus estimate of $0.04 per share.
Total contract revenue from continuing operations declined 12.2% to $257.72 million from $293.44 million in the year-ago period due to reduced customer spending in a tough economic environment. Cost of earned revenues, excluding depreciation and amortization, slipped 13.7% to $206.73 million from $239.60 million. Meanwhile, general and administrative expenses inched down 2.8% to $24.28 million from $24.97 million a year ago. Depreciation and amortization costs decreased 6.6% to $16.16 million from $17.30 million. Interest expenses increased 1.7% to $3.16 million from $3.11 million in the prior year quarter. Finally, interest income dropped to $60,000 from $238,000 in Q3 FY08.
Cash and cash equivalents more than tripled to $78.76 million from $22.07 million in the same quarter of last year. Shareholders' equity dropped 13.8% to $382.76 million from $444.09 million, while long-term debt decreased 10.3% to $135.49 million from $151.05 million. As a result, the debt-to-equity ratio improved to 2.83 from 2.94 a year ago.