ANDOVER, Mass., Feb. 8, 2011 (GLOBE NEWSWIRE) -- Dynamics Research Corporation (Nasdaq:DRCO), a leading provider of innovative management consulting, engineering, and information technology services and solutions to federal and state governments, today issued financial guidance for the first quarter and calendar year ending December 31, 2011, and updated its projections for fourth quarter and full year 2010 results.
2011 Financial Guidance
Earnings for the full year 2011 are estimated to be in the range of $1.25 to $1.32 per diluted share, reflecting an increase of 5 to 10 percent over 2010 excluding a one-time tax benefit of 3 cents received in the first quarter of 2010. Earnings per diluted share are forecast to be between $0.25 and $0.27 for the first quarter of 2011, up 4 to 13 percent over the first quarter of 2010 excluding the one-time tax benefit received in the prior-year period. The Company's estimate of revenue for 2011 is in the range of $281 to $289 million, reflecting anticipated top-line growth for DRC's core federal business of 5 to 8 percent. For the first quarter of 2011, revenue is projected at $68 to $70 million reflecting growth in the Company's core federal business of 3 to 6 percent. These projections exclude the effects of future acquisitions and assume a tax rate of approximately 40 percent.
Updated 2010 Projections
The Company also updated its 2010 projections. Earnings per diluted share for the year 2010 are anticipated to be between $1.21 and $1.23 or between $0.38 and $0.40 for the fourth quarter of 2010. Revenue for the year 2010 is anticipated to be in the vicinity of $272 million or $69 to $70 million for the fourth quarter. Operating margin for the year 2010 is projected to be approximately 7.7 percent. Cash flow in the last quarter of the year also was strong. The Company ended the year with $30.2 million in cash and a $22.0 million balance remaining on its term loan debt.
Management Comments
The Company also reported that its pipeline of qualified new business contract opportunities currently stands at $595 million, up 12 percent from a year ago, and the first year revenue value of new business awards in 2010 was $83 million, up 30 percent over 2009.
"Leading indicators clearly point to the momentum we are gaining in our target growth markets – homeland security, health, cyber security, intelligence and financial and regulatory reform," said Jim Regan, DRC's chairman and chief executive officer. "Revenue in our growth markets now represents 60 percent of total revenue, growing 12 percent in the past year. For 2011 we anticipate these segments to increase to 65 percent of total revenue, growing at the same pace or better than in 2010."
Conference Call
The Company has previously announced that it will release its fourth quarter and year end 2010 financial results after market close on Wednesday, February 16, 2011.A conference call to review the results will be held on Thursday, February 17, 2011 at 10:00 a.m. ET.
The call will be available by telephone at 877-303-4382, and accessible by webcast at http://www.drc.com. Recorded replays of the conference call will be available on Dynamics Research Corporation's investor relations home page at http://www.drc.com and by telephone at 800-642-1687, replay passcode #41431225, beginning at 1:00 p.m. ET February 17, 2011.
Also, the Company has previously announced that it will participate in the Cowen & Company 30th Annual Aerospace/Defense Conference on Thursday, February 10th, 2011 at the InterContinental Barclay Hotel in New York. Jim Regan, Chairman and Chief Executive Officer, and Dave Keleher, Senior Vice President and Chief Financial Officer, will review the Company's growth strategy at 9:40 a.m. ET.
A live audio webcast of the presentation will be accessible via the DRC website. To hear the presentation and view related materials, please visit our website. A replay will be available for ninety days. Additional information about this conference can be found at .
About Dynamics Research Corporation
Dynamics Research Corporation (DRC) is a leading provider of mission-critical technology management services for government programs. DRC offers forward-thinking solutions backed by a history of excellence and customer satisfaction. Founded in 1955, DRC is a publicly held corporation (Nasdaq:DRCO) and maintains more than 25 offices nationwide with major offices in Andover, Massachusetts and the Washington, D.C. area. For more information please visit our website at .
Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the Company's financial results, please refer to DRC's most recent filings with the SEC. The Company assumes no obligation to update any forward-looking information.
CONTACT: Investors: Chris Witty Darrow Associates, Inc. 646.438.9385 cwitty@darrowir.com Media: Matt Warnock Sage Communications 703.207.0941 mattw@aboutsage.com
