R
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
FOR
THE QUARTERLY PERIOD ENDED MARCH 31, 2009
|
|
OR
|
|
£
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
FOR
THE TRANSITION PERIOD
FROM
TO
|
MASSACHUSETTS
|
04-2211809
|
(State
or other jurisdiction of Incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Large
accelerated filer
|
£
|
Accelerated
filer R
|
Non-accelerated
filer
|
£ (Do not
check if a smaller reporting company)
|
Smaller
reporting company £
|
Page
|
||||
Part
I. Financial Information
|
||||
Item
1.
|
Financial
Statements
|
|||
3
|
||||
4
|
||||
5
|
||||
6
|
||||
7
|
||||
Item
2.
|
16
|
|||
Item
3.
|
23
|
|||
Item
4.
|
24
|
|||
Part
II. Other Information
|
||||
Item
1.
|
24
|
|||
Item
1A.
|
24
|
|||
Item
2.
|
25
|
|||
Item
6.
|
25
|
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 4,383 | $ | 7,111 | ||||
Contract
receivables, net
|
71,761 | 71,438 | ||||||
Prepaid
expenses and other current assets
|
3,401 | 2,491 | ||||||
Total
current assets
|
79,545 | 81,040 | ||||||
Noncurrent
assets
|
||||||||
Property
and equipment, net
|
8,821 | 9,349 | ||||||
Goodwill
|
97,641 | 97,641 | ||||||
Intangible
assets, net
|
6,406 | 7,379 | ||||||
Deferred
tax asset
|
10,369 | 10,396 | ||||||
Other
noncurrent assets
|
3,042 | 3,125 | ||||||
Total
noncurrent assets
|
126,279 | 127,890 | ||||||
Total
assets
|
$ | 205,824 | $ | 208,930 | ||||
Liabilities
and stockholders' equity
|
||||||||
Current
liabilities
|
||||||||
Current
portion of long-term debt
|
$ | 8,000 | $ | 8,000 | ||||
Accounts
payable
|
17,720 | 18,095 | ||||||
Accrued
compensation and employee benefits
|
13,419 | 13,644 | ||||||
Deferred
taxes
|
3,492 | 2,670 | ||||||
Other
accrued expenses
|
20,898 | 24,760 | ||||||
Total
current liabilities
|
63,529 | 67,169 | ||||||
Long-term
liabilities
|
||||||||
Long-term
debt
|
28,296 | 30,000 | ||||||
Other
long-term liabilities
|
30,523 | 30,286 | ||||||
Total
long-term liabilities
|
58,819 | 60,286 | ||||||
Total
liabilities
|
122,348 | 127,455 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders'
equity
|
||||||||
Preferred
stock, $0.10 par value; 5,000,000 shares authorized; no shares issued and
outstanding
|
- | - | ||||||
Common
stock, $0.10 par value; 30,000,000 shares authorized; 9,729,453 and
9,674,512 shares issued and outstanding at March 31, 2009 and December 31,
2008, respectively
|
973 | 967 | ||||||
Capital
in excess of par value
|
52,102 | 51,919 | ||||||
Accumulated
other comprehensive loss, net of taxes
|
(22,227 | ) | (22,268 | ) | ||||
Retained
earnings
|
52,628 | 50,857 | ||||||
Total
stockholders' equity
|
83,476 | 81,475 | ||||||
Total
liabilities and stockholders' equity
|
$ | 205,824 | $ | 208,930 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Contract
revenue
|
$ | 67,203 | $ | 54,773 | ||||
Product
sales
|
1,336 | 1,705 | ||||||
Total
revenue
|
68,539 | 56,478 | ||||||
Cost
of contract revenue
|
55,943 | 46,212 | ||||||
Cost
of product sales
|
1,518 | 1,605 | ||||||
Total
cost of revenue
|
57,461 | 47,817 | ||||||
Gross
profit on contract revenue
|
11,260 | 8,561 | ||||||
Gross
(loss) profit on product sales
|
(182 | ) | 100 | |||||
Total
gross profit
|
11,078 | 8,661 | ||||||
Selling,
general and administrative expenses
|
6,457 | 5,401 | ||||||
Provision
for litigation
|
- | 8,819 | ||||||
Amortization
of intangible assets
|
973 | 509 | ||||||
Operating
income (loss)
|
3,648 | (6,068 | ) | |||||
Interest
expense, net
|
(619 | ) | (139 | ) | ||||
Other
income (expense), net
|
39 | (71 | ) | |||||
Income
(loss) before provision (benefit) for income taxes
|
3,068 | (6,278 | ) | |||||
Provision
(benefit) for income taxes
|
1,297 | (1,022 | ) | |||||
Net
income (loss)
|
$ | 1,771 | $ | (5,256 | ) | |||
Earnings
(loss) per common share
|
||||||||
Basic
|
$ | 0.18 | $ | (0.56 | ) | |||
Diluted
|
$ | 0.18 | $ | (0.56 | ) | |||
Weighted
average shares outstanding
|
||||||||
Basic
|
9,604,895 | 9,436,054 | ||||||
Diluted
|
9,711,084 | 9,436,054 |
Capital
|
Accumulated
|
|||||||||||||||||||||||
Common
Stock
|
in
Excess
|
Other
|
||||||||||||||||||||||
Issued
|
of
Par
|
Comprehensive
|
Retained
|
|||||||||||||||||||||
Shares
|
Par value
|
Value
|
Loss
|
Earnings
|
Total
|
|||||||||||||||||||
Balance
at December 31, 2008
|
9,675 | $ | 967 | $ | 51,919 | $ | (22,268 | ) | $ | 50,857 | $ | 81,475 | ||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||
Net
income
|
- | - | - | - | 1,771 | 1,771 | ||||||||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||||||||
Change
in unrealized loss on derivative instruments
|
- | - | - | 41 | - | 41 | ||||||||||||||||||
Comprehensive
income
|
- | - | - | - | - | 1,812 | ||||||||||||||||||
Issuance
of common stock through stock option exercises and employee stock purchase
plan transactions
|
12 | 1 | 80 | - | - | 81 | ||||||||||||||||||
Issuance
of restricted stock
|
55 | 6 | (6 | ) | - | - | - | |||||||||||||||||
Forfeiture
of restricted stock
|
(2 | ) | - | - | - | - | - | |||||||||||||||||
Release
of restricted stock
|
(11 | ) | (1 | ) | (82 | ) | - | - | (83 | ) | ||||||||||||||
Share-based
compensation
|
- | - | 191 | - | - | 191 | ||||||||||||||||||
Balance
at March 31, 2009
|
9,729 | $ | 973 | $ | 52,102 | $ | (22,227 | ) | $ | 52,628 | $ | 83,476 | ||||||||||||
Capital
|
Accumulated
|
|||||||||||||||||||||||
Common
Stock
|
in
Excess
|
Other
|
||||||||||||||||||||||
Issued
|
of
Par
|
Comprehensive
|
Retained
|
|||||||||||||||||||||
Shares
|
Par value
|
Value
|
Loss
|
Earnings
|
Total
|
|||||||||||||||||||
Balance
at December 31, 2007
|
9,510 | $ | 951 | $ | 50,251 | $ | (6,745 | ) | $ | 52,047 | $ | 96,504 | ||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||
Net
loss
|
- | - | - | - | (5,256 | ) | (5,256 | ) | ||||||||||||||||
Other
comprehensive loss, net of tax:
|
||||||||||||||||||||||||
Reclassification
adjustment for realized gain on sale of
investments
|
- | - | - | (108 | ) | - | (108 | ) | ||||||||||||||||
Comprehensive
loss
|
- | - | - | - | - | (5,364 | ) | |||||||||||||||||
Issuance
of common stock through stock option exercises and employee stock purchase
plan transactions
|
28 | 3 | 231 | - | - | 234 | ||||||||||||||||||
Issuance
of restricted stock
|
34 | 3 | (3 | ) | - | - | - | |||||||||||||||||
Forfeiture
of restricted stock
|
(2 | ) | - | - | - | - | - | |||||||||||||||||
Release
of restricted stock
|
(12 | ) | (1 | ) | (118 | ) | - | - | (119 | ) | ||||||||||||||
Share-based
compensation
|
- | - | 402 | - | - | 402 | ||||||||||||||||||
Tax
benefit from stock options exercised and employee stock purchase plan
transactions
|
- | - | 12 | - | - | 12 | ||||||||||||||||||
Balance
at March 31, 2008
|
9,558 | $ | 956 | $ | 50,775 | $ | (6,853 | ) | $ | 46,791 | $ | 91,669 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income (loss)
|
$ | 1,771 | $ | (5,256 | ) | |||
Adjustments
to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
|
784 | 700 | ||||||
Amortization
of intangible assets
|
973 | 509 | ||||||
Share-based
compensation
|
191 | 402 | ||||||
Investment
income from equity interest
|
(96 | ) | 54 | |||||
Tax
benefit from stock options exercised and employee stock purchase plan
transactions
|
- | (12 | ) | |||||
Provision
for litigation
|
- | 8,819 | ||||||
Deferred
income taxes
|
821 | (2,421 | ) | |||||
Other
|
(106 | ) | (245 | ) | ||||
Change
in operating assets and liabilities:
|
||||||||
Contract
receivables, net
|
(323 | ) | 1,659 | |||||
Prepaid
expenses and other current assets
|
(910 | ) | (1,178 | ) | ||||
Accounts
payable
|
(375 | ) | (1,044 | ) | ||||
Accrued
compensation and employee benefits
|
(225 | ) | (1,466 | ) | ||||
Other
accrued expenses
|
305 | 1,380 | ||||||
Other
long-term liabilities
|
556 | (69 | ) | |||||
Net
cash provided by operating activities
|
3,366 | 1,832 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchase
of business
|
(4,250 | ) | - | |||||
Additions
to property and equipment
|
(266 | ) | (402 | ) | ||||
Proceeds
from sale of investments and long-lived assets
|
1 | 273 | ||||||
Dividends
from equity investment
|
44 | 277 | ||||||
Payments
related to the sale of building
|
- | (35 | ) | |||||
Increase
in other assets
|
- | (399 | ) | |||||
Net
cash used in investing activities
|
(4,471 | ) | (286 | ) | ||||
Cash
flow from financing activities:
|
||||||||
Repayments
under term loan
|
(2,000 | ) | - | |||||
Borrowings
under revolving credit agreement
|
11,570 | 20,497 | ||||||
Repayments
under revolving credit agreement
|
(11,274 | ) | (23,234 | ) | ||||
Proceeds
from the exercise of stock options and employee stock purchase plan
transactions
|
81 | 234 | ||||||
Tax
benefit from stock options exercised and employee stock purchase plan
transactions
|
- | 12 | ||||||
Net
cash used in financing activities
|
(1,623 | ) | (2,491 | ) | ||||
Net
decrease in cash and cash equivalents
|
(2,728 | ) | (945 | ) | ||||
Cash
and cash equivalents, beginning of period
|
7,111 | 2,006 | ||||||
Cash
and cash equivalents, end of period
|
$ | 4,383 | $ | 1,061 |
Three
Months Ended
|
||||
March
31, 2008
|
||||
Revenue
|
$ | 65,517 | ||
Gross
profit
|
$ | 12,058 | ||
Operating
loss
|
$ | (4,555 | ) | |
Net
loss
|
$ | (5,061 | ) | |
Loss
per common share:
|
||||
Basic
|
$ | (0.54 | ) | |
Diluted
|
$ | (0.54 | ) |
March 31,
|
December 31,
|
|||||||
2009
|
2008
|
|||||||
Contract
receivables, net
|
||||||||
Billed
receivables
|
$ | 33,277 | $ | 35,423 | ||||
Unbilled
receivables(1):
|
||||||||
Revenues
recorded in excess of milestone billings on fixed price contracts with the
States of Ohio and Tennessee
|
10,168 | 8,907 | ||||||
Retainages
and fee withholdings
|
1,159 | 1,179 | ||||||
Other
unbilled receivables
|
28,034 | 26,858 | ||||||
Total
unbilled receivables
|
39,361 | 36,944 | ||||||
Allowance
for doubtful accounts
|
(877 | ) | (929 | ) | ||||
Contract
receivables, net
|
$ | 71,761 | $ | 71,438 | ||||
Prepaid
expenses and other current assets:
|
||||||||
Inventory
|
$ | 803 | $ | 766 | ||||
Restricted
cash
|
22 | 150 | ||||||
Other
|
2,576 | 1,575 | ||||||
Prepaid
expenses and other current assets
|
$ | 3,401 | $ | 2,491 | ||||
Property
and equipment, net:
|
||||||||
Production
equipment
|
$ | 11,572 | $ | 11,530 | ||||
Software
|
11,608 | 11,602 | ||||||
Furniture
and other equipment
|
7,738 | 7,644 | ||||||
Leasehold
improvements
|
2,962 | 2,949 | ||||||
Property
and equipment
|
33,880 | 33,725 | ||||||
Less
accumulated depreciation
|
(25,059 | ) | (24,376 | ) | ||||
Property
and equipment, net
|
$ | 8,821 | $ | 9,349 | ||||
Other
noncurrent assets:
|
||||||||
Equity
investments
|
$ | 1,232 | $ | 1,180 | ||||
Deferred
compensation plan investments
|
1,026 | 1,107 | ||||||
Other
|
784 | 838 | ||||||
Other
noncurrent assets
|
$ | 3,042 | $ | 3,125 |
March 31,
|
December 31,
|
|||||||
2009
|
2008
|
|||||||
Accrued
compensation and employee benefits:
|
||||||||
Accrued
compensation and related taxes
|
$ | 7,134 | $ | 7,504 | ||||
Accrued
vacation
|
5,311 | 4,391 | ||||||
Other
|
974 | 1,749 | ||||||
Accrued
compensation and employee benefits
|
$ | 13,419 | $ | 13,644 | ||||
Other
accrued expenses:
|
||||||||
Accrued
litigation reserve
|
$ | 15,000 | $ | 15,000 | ||||
Accrued
acquisition costs
|
- | 4,265 | ||||||
Accrued
income taxes
|
2,226 | 2,042 | ||||||
Deferred
gain on sale of building
|
670 | 676 | ||||||
Other
|
3,002 | 2,777 | ||||||
Other
accrued expenses
|
$ | 20,898 | $ | 24,760 | ||||
Other
long-term liabilities:
|
||||||||
Accrued
pension liability
|
$ | 22,975 | $ | 22,570 | ||||
Deferred
gain on sale of building
|
3,888 | 4,057 | ||||||
Deferred
compensation plan liability
|
1,026 | 1,107 | ||||||
Other
|
2,634 | 2,552 | ||||||
Other
long-term liabilities
|
$ | 30,523 | $ | 30,286 |
(1)
|
At
March 31, 2009 and December 31, 2008, $513 and $495, respectively, of
unbilled retainages and fee withholdings are not anticipated to be billed
within one year. Additionally, at March 31, 2009 and December
31, 2008, $8,166 and $4,557, respectively, of the unbilled balance under
the Company’s contract with the State of Tennessee is not scheduled to be
invoiced within one year.
|
March
31, 2009
|
December
31, 2008
|
|||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Cost
|
Amortization
|
Net
|
Cost
|
Amortization
|
Net
|
|||||||||||||||||||
Customer
relationships
|
$ | 14,700 | $ | (12,192 | ) | $ | 2,508 | $ | 14,700 | $ | (11,769 | ) | $ | 2,931 | ||||||||||
Customer
contracts
|
3,500 | (950 | ) | 2,550 | 3,500 | (522 | ) | 2,978 | ||||||||||||||||
Non-competition
agreements
|
1,400 | (87 | ) | 1,313 | 1,400 | - | 1,400 | |||||||||||||||||
8(a)
contract transition
|
130 | (95 | ) | 35 | 130 | (60 | ) | 70 | ||||||||||||||||
Total
|
$ | 19,730 | $ | (13,324 | ) | $ | 6,406 | $ | 19,730 | $ | (12,351 | ) | $ | 7,379 |
Remainder
of 2009
|
$ | 2,332 | ||
2010
|
$ | 1,542 | ||
2011
|
$ | 1,188 | ||
2012
|
$ | 492 | ||
2013
|
$ | 349 | ||
2014
and thereafter
|
$ | 503 |
March
31,
2009
|
December
31,
2008
|
Three
Months
Ended
March
31, 2009
|
||||||||||
Instrument
|
Other
Long-term
Liabilities
|
Other
Long-term
Liabilities
|
Net
Gain
Recognized
in
Other
Comprehensive
Income
|
|||||||||
Interest
rate swap
|
$ | 791 | $ | 860 | $ | 41 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Interest
cost on projected benefit obligation
|
$ | 1,067 | $ | 959 | ||||
Expected
return on plan assets
|
(964 | ) | (1,396 | ) | ||||
Recognized
actuarial loss
|
303 | 137 | ||||||
Net
periodic pension expense (income)
|
$ | 406 | $ | (300 | ) |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Cost
of products and services
|
$ | 80 | $ | 163 | ||||
Selling,
general and administrative
|
111 | 239 | ||||||
Total
share-based compensation expense
|
$ | 191 | $ | 402 |
Weighted
|
||||||||||||||||
Average
|
||||||||||||||||
Weighted
|
Remaining
|
|||||||||||||||
Average
|
Contractual
|
Aggregate
|
||||||||||||||
Number
of
|
Exercise
|
Term
|
Intrinsic
|
|||||||||||||
Shares
|
Price
|
(in years)
|
Value
|
|||||||||||||
Outstanding
and exercisable at December 31, 2008
|
889,108 | $ | 8.42 | 2.1 | $ | 729 | ||||||||||
Granted
|
- | $ | - | |||||||||||||
Exercised
|
- | $ | - | |||||||||||||
Cancelled
|
(4,917 | ) | $ | 11.70 | ||||||||||||
Outstanding
and exercisable at March 31, 2009
|
884,191 | $ | 8.40 | 1.9 | $ | 561 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Amounts
realized or received from stock option exercises:
|
||||||||
Cash
proceeds received
|
$ | - | $ | 113 | ||||
Intrinsic
value realized
|
$ | - | $ | 34 | ||||
Income
tax benefit realized
|
$ | - | $ | 11 |
Weighted
|
||||||||
Average
|
||||||||
Number
of
|
Grant-Date
|
|||||||
Shares
|
Fair Value
|
|||||||
Nonvested
at December 31, 2008
|
158,476 | $ | 10.61 | |||||
Granted
|
56,250 | $ | 7.51 | |||||
Vested
|
(33,834 | ) | $ | 11.58 | ||||
Cancelled
|
(2,000 | ) | $ | 12.11 | ||||
Nonvested
at March 31, 2009
|
178,892 | $ | 9.46 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Weighted
average shares outstanding - Basic
|
9,604,895 | 9,436,054 | ||||||
Dilutive
effect of stock options and restricted stock grants
|
106,189 | - | ||||||
Weighted
average shares outstanding - Diluted
|
9,711,084 | 9,436,054 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Revenues
from external customers
|
||||||||
Systems
and Services
|
$ | 67,203 | $ | 54,773 | ||||
Metrigraphics
|
1,336 | 1,705 | ||||||
$ | 68,539 | $ | 56,478 | |||||
Gross
profit (loss)
|
||||||||
Systems
and Services
|
$ | 11,260 | $ | 8,561 | ||||
Metrigraphics
|
(182 | ) | 100 | |||||
$ | 11,078 | $ | 8,661 | |||||
Operating
income (loss)
|
||||||||
Systems
and Services
|
$ | 4,117 | $ | (5,841 | ) | |||
Metrigraphics
|
(469 | ) | (227 | ) | ||||
$ | 3,648 | $ | (6,068 | ) |
•
|
the
ability to make more meaningful period-to-period comparisons of our
ongoing operating results;
|
||
•
|
the
ability to better identify trends in our underlying business and perform
related trend analysis;
|
||
•
|
a
higher degree of transparency for certain expenses (particularly when a
specific charge impacts multiple line items);
|
||
•
|
a
better understanding of how management plans and measures our underlying
business; and
|
||
•
|
an
easier way to compare our most recent results of operations against
investor and analyst financial
models.
|
Three
Months Ended
|
||||||||||||||||||
March
31,
|
||||||||||||||||||
2009
|
2008
|
|||||||||||||||||
(in
millions)
|
$
|
%
(2)
|
$
(1)
|
%
(2)
|
||||||||||||||
GAAP
operating income (loss)
|
$ | 3.6 | 5.3 | % | $ | (6.1 | ) | (10.7 | )% | |||||||||
Provision
for litigation
|
8.8 | 15.6 | % | |||||||||||||||
Non-GAAP
operating income
|
$ | 2.8 | 4.9 | % | ||||||||||||||
GAAP
income (loss) before provision for income taxes
|
$ | 3.1 | 4.5 | % | $ | (6.3 | ) | (11.1 | )% | |||||||||
Provision
for litigation
|
8.8 | 15.6 | % | |||||||||||||||
Non-GAAP
income before provision for income taxes
|
$ | 2.5 | 4.5 | % | ||||||||||||||
GAAP
provision (benefit) for income taxes
|
$ | 1.3 | 42.3 | % | $ | (1.0 | ) | 16.3 | % | (3) | ||||||||
Tax
benefit for provision for litigation
|
2.1 | 24.1 | % | (3) | ||||||||||||||
Non-GAAP
provision for income taxes
|
$ | 1.1 | 43.4 | % | (3) | |||||||||||||
GAAP
net income (loss)
|
$ | 1.8 | 2.6 | % | $ | (5.3 | ) | (9.3 | % | |||||||||
Provision
for litigation, net of tax benefit
|
6.7 | 11.9 | % | |||||||||||||||
Non-GAAP
net income
|
$ | 1.4 | 2.5 | % |
(1)
|
Totals
may not add due to rounding.
|
(2)
|
Represents
a percentage of total revenue of $68.5 million and $56.5 million in the
three months ended March 31, 2009 and 2008, respectively, excluding the
percentages for provision (benefit) for income taxes and the tax benefit
for provision for litigation.
|
(3)
|
These
amounts represent a percentage of GAAP income (loss) before provision for
income taxes, provision for litigation and non-GAAP income before
provision for income taxes,
respectively.
|
Three
Months Ended March 31,
|
||||||||||||||||||
2009
|
2008
|
|||||||||||||||||
(in
millions)
|
$ (1)
|
%
|
$ (1)
|
%
|
||||||||||||||
Contract
revenue
|
$ | 67.2 | 98.1 | % | $ | 54.8 | 97.0 | % | ||||||||||
Product
sales
|
1.3 | 1.9 | 1.7 | 3.0 | ||||||||||||||
Total
revenue
|
$ | 68.5 | 100.0 | % | $ | 56.5 | 100.0 | % | ||||||||||
Gross
profit on contract revenue (3)
|
$ | 11.3 | 16.8 | % | $ | 8.6 | 15.6 | % | ||||||||||
Gross
profit (loss) on product sales (3)
|
(0.2 | ) | (13.6 | )% | 0.1 | 5.9 | % | |||||||||||
Total
gross profit (3)
|
11.1 | 16.2 | % | 8.7 | 15.3 | % | ||||||||||||
Selling,
general and administrative
|
6.5 | 9.4 | % | 5.4 | 9.6 | % | ||||||||||||
Provision
for litigation
|
- | 0.0 | % | 8.8 | 15.6 | % | ||||||||||||
Amortization
of intangible assets
|
1.0 | 1.4 | % | 0.5 | 0.9 | % | ||||||||||||
Operating
income (loss)
|
3.6 | 5.3 | % | (6.1 | ) | (10.7 | )% | |||||||||||
Interest
expense, net
|
(0.6 | ) | (0.9 | )% | (0.1 | ) | (0.2 | )% | ||||||||||
Other
income, net
|
0.0 | 0.1 | % | (0.1 | ) | (0.1 | )% | |||||||||||
Provision
(benefit) for income taxes
|
1.3 | 42.3 | % |
(2)
|
(1.0 | ) | 16.3 | % |
(2)
|
|||||||||
Net
income (loss)
|
$ | 1.8 | 2.6 | % | $ | (5.3 | ) | (9.3 | )% |
(1)
|
Totals
may not add due to rounding.
|
(2)
|
The
percentage of provision (benefit) for income taxes relates to a percentage
of income (loss) before income taxes.
|
(3)
|
These
amounts represent a percentage of contract revenues, product sales and
total revenues, respectively.
|
Three
Months Ended March 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
(in
millions)
|
$ (1)
|
% (1)
|
$ (1)
|
% (1)
|
||||||||||||
National
defense and intelligence agencies
|
$ | 36.1 | 53.7 | % | $ | 40.9 | 74.8 | % | ||||||||
Federal
civilian agencies
|
12.2 | 18.1 | 6.6 | 12.1 | ||||||||||||
Homeland
Security
|
12.8 | 19.1 | 1.3 | 2.4 | ||||||||||||
State
and local government agencies
|
5.8 | 8.7 | 5.2 | 9.6 | ||||||||||||
Other
|
0.3 | 0.4 | 0.6 | 1.1 | ||||||||||||
Total
contract revenue
|
$ | 67.2 | 100.0 | % | $ | 54.8 | 100.0 | % |
(1)
|
Totals
may not add due to rounding.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Time
and materials
|
46 | % | 55 | % | ||||
Cost
reimbursable
|
17 | 19 | ||||||
Fixed
price, including service type contracts
|
37 | 26 | ||||||
100 | % | 100 | % | |||||
Prime
contract
|
72 | % | 54 | % | ||||
Sub-contract
|
28 | 46 | ||||||
100 | % | 100 | % |
Total Number
|
Approximate
|
|||||||||||||||
of
Shares
|
Dollar
Value
|
|||||||||||||||
Purchased
as
|
of Shares that
|
|||||||||||||||
Part
of
|
May
Yet Be
|
|||||||||||||||
Total Number
|
Average
Price
|
Publicly
|
Purchased
|
|||||||||||||
of
Shares
|
Paid
Per
|
Announced
|
Under
the
|
|||||||||||||
Purchased
|
Share
|
Programs
|
Programs
|
|||||||||||||
January
1, 2009 to January 31, 2009
|
641 | $ | 7.04 | - | $ | - | ||||||||||
February
1, 2009 to February 28, 2009
|
3,421 | $ | 7.88 | - | - | |||||||||||
March
1, 2009 to March 31, 2009
|
7,329 | $ | 7.09 | - | - | |||||||||||
Total
|
11,391 | $ | 7.33 | - | $ | - |
31.1
|
Certification
of the Chief Executive Officer pursuant to Rule 13a-14(a) under the
Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification
of the Chief Financial Officer pursuant to Rule 13a-14(a) under the
Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
DYNAMICS
RESEARCH CORPORATION
|
|
(Registrant)
|
|
Date: May
08, 2009
|
/s/
David Keleher
|
Senior
Vice President, Chief Financial Officer and Treasurer
|
|
(Principal
Financial Officer)
|
|
Date: May
08, 2009
|
/s/
Shaun N. McCarthy
|
Vice
President, Corporate Controller and Chief Accounting
Officer
|
|
(Principal
Accounting Officer)
|
|