Essex Corporation Reports Q1 2006 Revenues
biz.yahoo.com
Tuesday May 9, 4:20 pm ET
COLUMBIA, Md., May 9 /PRNewswire-FirstCall/ -- Essex Corporation (Nasdaq: KEYW) announces today revenues of $54.3 million for the three month period ended March 31, 2006 as compared to $25.7 million in the same period of 2005. Income after taxes was $2.1 million and $1.5 million in the three month periods ended March 31, 2006 and March 31, 2005, respectively. Earnings per Share (EPS) were $0.09 per share (diluted) for Q1 2006 versus EPS for the same period in 2005 of $0.07 per share (diluted). Beginning with the first quarter 2006, net income and EPS reflect the impact of provisions for taxes and stock option expenses.
"First quarter 2006 was a very busy period at Essex Corporation," commented Leonard Moodispaw, CEO and President. "We started up our newest large contract, Cougar, and continued expanding our facilities to meet the needs of our customers and contracts. On the product side, we took our Advanced Optical Processor for radar to a field testing range, collected first flight data using our software configurable radar system, scheduled first joint customer meetings with our partner on the optical encryptor, and delivered first samples of our newest optical products to potential customers for evaluation. In addition, among other new work we received orders for over $4 million for our Essex/Windermere subsidiary's signals intelligence products. At the same time, we increased our investment in R&D, facilities, and infrastructure. Once again, I believe we have gone beyond just delivering strong quarterly results; we are continuing to grow our ability to grow and expand the services and products offered by Essex both internally and with additional strategic acquisitions."
For the three month period ended March 31, 2006, services and products gross margin increased to 31% from 29.3% for the comparable period of 2005. The increase in services and products gross margin percent results primarily from shifts from subcontractor labor to our labor under our contracts. Overall gross margin declined because of the revenue mix. Low margin materials revenue growth outpaced the revenue from services and products, lowering the overall gross margin from 27.5% at March 31, 2005 to 26.3% at March 31, 2006.
As of March 31, 2006, we had total backlog, funded and unfunded, of $458.2 million as compared with $408.1 million at March 31, 2005. Of these amounts, funded backlog was $120.4 million and unfunded backlog was $337.8 million at March 31, 2006 compared to $103.6 million and $304.5 million, respectively, at March 31, 2005.
Our working capital at March 31, 2006 increased to $49.4 million from $48.1 million at fiscal year end 2005. We anticipate continued investment in infrastructure for the remainder of 2006 as we continue to support our growing workforce and as we expand our facilities to support our Thunder, Woodstock, and Cougar contracts.
For the three month period ended March 31, 2006, amortization of other intangible assets increased by $44,000 to $596,000 compared to $552,000 in the comparable period in 2005. This increase resulted from the amortization of customer contracts and other intangibles associated with the Essex/Windermere acquisition that occurred in February 2005. Amortization of existing intangibles is expected to decline for the remainder of fiscal 2006.
Essex reaffirms its revenue guidance for 2006 of $210 million to $220 million. |
