R
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
FOR
THE QUARTERLY PERIOD ENDED MARCH 31, 2010
|
|
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.
|
15
|
||
Item
3.
|
21
|
||
Item
4.
|
21
|
||
Part
II. Other Information
|
22
|
||
Item
1.
|
22
|
||
Item
1A.
|
22
|
||
Item
2.
|
22
|
||
Item
6.
|
23
|
March
31,
|
December
31,
|
|||||
2010
|
2009
|
|||||
(unaudited)
|
||||||
Assets
|
||||||
Current
assets
|
||||||
Cash
and cash equivalents
|
$ | 6,947 | $ | 55 | ||
Contract
receivables, net
|
66,936 | 72,569 | ||||
Prepaid
expenses and other current assets
|
3,520 | 5,702 | ||||
Discontinued
operations
|
2,390 | 2,058 | ||||
Total
current assets
|
79,793 | 80,384 | ||||
Noncurrent
assets
|
||||||
Property
and equipment, net
|
13,349 | 13,915 | ||||
Goodwill
|
97,641 | 97,641 | ||||
Intangible
assets, net
|
3,689 | 4,074 | ||||
Deferred
tax asset
|
4,153 | 4,252 | ||||
Other
noncurrent assets
|
3,335 | 3,335 | ||||
Total
noncurrent assets
|
122,167 | 123,217 | ||||
Total
assets
|
$ | 201,960 | $ | 203,601 | ||
Liabilities
and stockholders' equity
|
||||||
Current
liabilities
|
||||||
Current
portion of long-term debt
|
$ | 8,000 | $ | 8,000 | ||
Accounts
payable
|
18,674 | 18,299 | ||||
Accrued
compensation and employee benefits
|
15,276 | 16,357 | ||||
Deferred
taxes
|
5,498 | 7,046 | ||||
Other
accrued expenses
|
4,932 | 3,708 | ||||
Discontinued
operations
|
308 | 186 | ||||
Total
current liabilities
|
52,688 | 53,596 | ||||
Long-term
liabilities
|
||||||
Long-term
debt
|
20,000 | 23,973 | ||||
Other
long-term liabilities
|
32,132 | 31,936 | ||||
Total
long-term liabilities
|
52,132 | 55,909 | ||||
Total
liabilities
|
104,820 | 109,505 | ||||
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; 9,924,056 and
9,923,357 shares issued and outstanding at March 31, 2010 and December 31,
2009, respectively
|
992 | 992 | ||||
Capital
in excess of par value
|
52,758 | 52,580 | ||||
Accumulated
other comprehensive loss, net of taxes
|
(20,508 | ) | (20,505 | ) | ||
Retained
earnings
|
63,898 | 61,029 | ||||
Total
stockholders' equity
|
97,140 | 94,096 | ||||
Total
liabilities and stockholders' equity
|
$ | 201,960 | $ | 203,601 |
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Revenue
|
$ | 68,584 | $ | 67,203 | ||
Cost
of revenue
|
57,827 | 55,943 | ||||
Gross
profit
|
10,757 | 11,260 | ||||
Selling,
general and administrative expenses
|
5,956 | 6,311 | ||||
Amortization
of intangible assets
|
385 | 973 | ||||
Operating
income
|
4,416 | 3,976 | ||||
Interest
expense, net
|
(376 | ) | (619 | ) | ||
Other
income, net
|
113 | 39 | ||||
Income
from continuing operations before provision for income
taxes
|
4,153 | 3,396 | ||||
Provision
for income taxes
|
1,416 | 1,439 | ||||
Income
from continuing operations
|
2,737 | 1,957 | ||||
Income
(loss) from discontinued operations, net of tax provision of $88 in 2010
and tax benefit of $142 in 2009.
|
132 | (186 | ) | |||
Net
income
|
$ | 2,869 | $ | 1,771 | ||
Earnings
per share
|
||||||
Basic
|
||||||
Income
from continuing operations
|
$ | 0.28 | $ | 0.20 | ||
Income
(loss) from discontinued operations
|
0.01 | (0.02 | ) | |||
Net
Income
|
$ | 0.29 | $ | 0.18 | ||
Diluted
|
||||||
Income
from continuing operations
|
$ | 0.27 | $ | 0.20 | ||
Income
(loss) from discontinued operations
|
0.01 | (0.02 | ) | |||
Net
Income
|
$ | 0.29 |
(1)
|
$ | 0.18 | |
Weighted
average shares outstanding
|
||||||
Basic
|
9,807,706 | 9,604,895 | ||||
Diluted
|
9,993,079 | 9,711,084 |
(1)
|
Total
does not add due to rounding.
|
Capital
|
||||||||||||||||||
Common
Stock
|
in
|
Accumulated
|
||||||||||||||||
Issued
|
Excess
|
Other
|
||||||||||||||||
Par
|
of
Par
|
Comprehensive
|
Retained
|
|||||||||||||||
Shares
|
Value
|
Value
|
Loss
|
Earnings
|
Total
|
|||||||||||||
Balance
at December 31, 2009
|
9,923 | $ | 992 | $ | 52,580 | $ | (20,505 | ) | $ | 61,029 | $ | 94,096 | ||||||
Comprehensive
income:
|
||||||||||||||||||
Net
income
|
- | - | - | - | 2,869 | 2,869 | ||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||
Change
in unrealized loss on derivative instruments
|
- | - | - | (3 | ) | - | (3 | ) | ||||||||||
Comprehensive
income
|
2,866 | |||||||||||||||||
Issuance
of common stock through stock plan transactions, net
|
17 | 1 | 119 | - | - | 120 | ||||||||||||
Issuance
of restricted stock
|
6 | 1 | (1 | ) | - | - | - | |||||||||||
Forfeiture
of restricted stock
|
(9 | ) | (1 | ) | 1 | - | - | - | ||||||||||
Release
of restricted stock
|
(13 | ) | (1 | ) | (133 | ) | - | - | (134 | ) | ||||||||
Share-based
compensation
|
- | - | 163 | - | - | 163 | ||||||||||||
Tax
benefit from stock plan transactions
|
- | - | 29 | - | - | 29 | ||||||||||||
Balance
at March 31, 2010
|
9,924 | $ | 992 | $ | 52,758 | $ | (20,508 | ) | $ | 63,898 | $ | 97,140 | ||||||
Capital
|
||||||||||||||||||
Common
Stock
|
in
|
Accumulated
|
||||||||||||||||
Issued
|
Excess
|
Other
|
||||||||||||||||
Par
|
of
Par
|
Comprehensive
|
Retained
|
|||||||||||||||
Shares
|
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 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 |
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Cash
flows from operating activities:
|
||||||
Net
income
|
$ | 2,869 | $ | 1,771 | ||
Income
(loss) from discontinued operations
|
132 | (186 | ) | |||
Income
from continuing operations
|
2,737 | 1,957 | ||||
Adjustments
to reconcile net cash provided by operating activities:
|
||||||
Depreciation
|
886 | 737 | ||||
Amortization
of intangible assets
|
385 | 973 | ||||
Share-based
compensation
|
163 | 191 | ||||
Investment
income from equity interest
|
(45 | ) | (96 | ) | ||
Tax
benefit from stock plan transactions
|
(29 | ) | - | |||
Deferred
income taxes
|
(1,447 | ) | 821 | |||
Other
|
(129 | ) | (106 | ) | ||
Change
in operating assets and liabilities:
|
||||||
Contract
receivables, net
|
5,633 | (430 | ) | |||
Prepaid
expenses and other current assets
|
2,182 | (807 | ) | |||
Accounts
payable
|
2,513 | (433 | ) | |||
Accrued
compensation and employee benefits
|
(1,081 | ) | (225 | ) | ||
Other
accrued expenses
|
1,119 | 308 | ||||
Other
long-term liabilities
|
200 | 556 | ||||
Net
cash provided by continuing operations
|
13,087 | 3,446 | ||||
Net
cash used in discontinued operations
|
(24 | ) | (80 | ) | ||
Net
cash provided by operating activities
|
13,063 | 3,366 | ||||
Cash
flows from investing activities:
|
||||||
Purchase
of business
|
- | (4,250 | ) | |||
Additions
to property and equipment
|
(2,470 | ) | (223 | ) | ||
Proceeds
from sale of investments and long-lived assets
|
19 | 1 | ||||
Dividends
from equity investment
|
37 | 44 | ||||
Increase
in other assets
|
121 | - | ||||
Net
cash used in continuing operations
|
(2,293 | ) | (4,428 | ) | ||
Net
cash used in discontinued operations
|
(54 | ) | (43 | ) | ||
Net
cash used in investing activities
|
(2,347 | ) | (4,471 | ) | ||
Cash
flow from financing activities:
|
||||||
Repayments
under term loan
|
(2,000 | ) | (2,000 | ) | ||
Borrowings
under revolving credit agreement
|
34,156 | 11,570 | ||||
Repayments
under revolving credit agreement
|
(36,129 | ) | (11,274 | ) | ||
Proceeds
from the exercise of stock plan transactions
|
120 | 81 | ||||
Tax
benefit from stock plan transactions
|
29 | - | ||||
Net
cash used in financing activities
|
(3,824 | ) | (1,623 | ) | ||
Net
increase (decrease) in cash and cash equivalents
|
6,892 | (2,728 | ) | |||
Cash
and cash equivalents, beginning of period
|
55 | 7,111 | ||||
Cash
and cash equivalents, end of period
|
$ | 6,947 | $ | 4,383 |
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Product
revenue
|
$ | 2,169 | $ | 1,336 | ||
Income
(loss) before income taxes
|
$ | 220 | $ | (328 | ) | |
(Provision)
benefit for income taxes
|
(88 | ) | 142 | |||
Income
(loss) from discontinued operations, net of tax
|
$ | 132 | $ | (186 | ) |
March
31,
|
December
31,
|
|||||
2010
|
2009
|
|||||
Accounts
receivable
|
$ | 1,035 | $ | 946 | ||
Inventory
|
1,119 | 864 | ||||
Prepaid
expenses and other current assets
|
10 | 22 | ||||
Property
and equipment, net
|
226 | 226 | ||||
Total
current assets
|
$ | 2,390 | $ | 2,058 | ||
Accounts
payable
|
$ | 296 | $ | 186 | ||
Other
accrued expenses
|
12 | - | ||||
Total
current liabilities
|
$ | 308 | $ | 186 |
March 31,
|
December 31,
|
|||||
2010
|
2009
|
|||||
Contract
receivables, net
|
||||||
Billed
receivables
|
$ | 22,900 | $ | 28,203 | ||
Unbilled
receivables(1):
|
||||||
Revenues
recorded in excess of milestone billings on a fixed price contract
with the State of Tennessee
|
13,199 | 18,004 | ||||
Retainages
and fee withholdings
|
195 | 689 | ||||
Other
unbilled receivables
|
31,613 | 26,256 | ||||
Total
unbilled receivables
|
45,007 | 44,949 | ||||
Allowance
for doubtful accounts
|
(971 | ) | (583 | ) | ||
Contract
receivables, net
|
$ | 66,936 | $ | 72,569 | ||
Prepaid
expenses and other current assets:
|
||||||
Refundable
income taxes
|
$ | - | $ | 1,604 | ||
Restricted
cash
|
289 | 262 | ||||
Other
|
3,231 | 3,836 | ||||
Prepaid
expenses and other current assets
|
$ | 3,520 | $ | 5,702 | ||
Property
and equipment, net:
|
||||||
Software
|
$ | 12,153 | $ | 12,107 | ||
Furniture
and other equipment
|
9,730 | 9,679 | ||||
Leasehold
improvements
|
6,571 | 6,445 | ||||
Production
equipment
|
440 | 440 | ||||
Property
and equipment
|
28,894 | 28,671 | ||||
Less
accumulated depreciation
|
(15,545 | ) | (14,756 | ) | ||
Property
and equipment, net
|
$ | 13,349 | $ | 13,915 |
March 31,
|
December 31,
|
|||||
2010
|
2009
|
|||||
Other
noncurrent assets:
|
||||||
Deferred
compensation plan investments
|
$ | 1,538 | $ | 1,378 | ||
Equity
investments
|
986 | 978 | ||||
Other
|
811 | 979 | ||||
Other
noncurrent assets
|
$ | 3,335 | $ | 3,335 | ||
Accrued
compensation and employee benefits:
|
||||||
Accrued
compensation and related taxes
|
$ | 7,774 | $ | 9,029 | ||
Accrued
vacation
|
5,537 | 4,724 | ||||
Accrued
pension liability
|
952 | 840 | ||||
Other
|
1,013 | 1,764 | ||||
Accrued
compensation and employee benefits
|
$ | 15,276 | $ | 16,357 | ||
Other
accrued expenses:
|
||||||
Accrued
income taxes
|
$ | 1,037 | $ | - | ||
Deferred
gain on sale of building
|
676 | 676 | ||||
Other
|
3,219 | 3,032 | ||||
Other
accrued expenses
|
$ | 4,932 | $ | 3,708 | ||
Other
long-term liabilities:
|
||||||
Accrued
pension liability
|
$ | 20,775 | $ | 20,666 | ||
Deferred
gain on sale of building
|
3,212 | 3,381 | ||||
Deferred
compensation plan liability
|
1,538 | 1,378 | ||||
Other
|
6,607 | 6,511 | ||||
Other
long-term liabilities
|
$ | 32,132 | $ | 31,936 |
(1)
|
At
March 31, 2010 and December 31, 2009, $173 and $503, respectively, of
unbilled retainages and fee withholdings are not anticipated to be billed
within one year.
|
March
31, 2010
|
December
31, 2009
|
|||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||
Cost
|
Amortization
|
Net
|
Cost
|
Amortization
|
Net
|
|||||||||||||
Customer
relationships
|
$ | 1,900 | $ | (217 | ) | $ | 1,683 | $ | 13,400 | $ | (11,643 | ) | $ | 1,757 | ||||
Customer
contracts
|
3,500 | (2,390 | ) | 1,110 | 3,500 | (2,234 | ) | 1,266 | ||||||||||
Non-competition
agreements
|
1,400 | (504 | ) | 896 | 1,400 | (349 | ) | 1,051 | ||||||||||
8(a)
contract transition
|
130 | (130 | ) | - | 130 | (130 | ) | - | ||||||||||
Total
|
$ | 6,930 | $ | (3,241 | ) | $ | 3,689 | $ | 18,430 | $ | (14,356 | ) | $ | 4,074 |
Remainder
of 2010
|
$ | 1,157 | |
2011
|
$ | 1,188 | |
2012
|
$ | 492 | |
2013
|
$ | 349 | |
2014
|
$ | 299 | |
2015
and thereafter
|
$ | 204 |
Fair
Value Measurements
|
||||||||||||||
At
March 31, 2010 Using
|
||||||||||||||
Balance
Sheet Location
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||
Assets:
|
||||||||||||||
Money
market funds
|
Cash
and cash equivalents
|
$ | 6,842 | $ | - | $ | - | $ | 6,842 | |||||
Investments
held in Rabbi Trusts
|
Other
noncurrent assets
|
1,538 | - | - | 1,538 | |||||||||
Total
|
$ | 8,380 | $ | - | $ | - | $ | 8,380 | ||||||
Liabilities:
|
||||||||||||||
Interest
rate swap
|
Other
long-term liabilities
|
$ | - | $ | 574 | $ | - | $ | 574 |
Fair
Value Measurements
|
||||||||||||||
At
December 31, 2009 Using
|
||||||||||||||
Balance
Sheet Location
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||
Assets:
|
||||||||||||||
Investments
held in Rabbi Trusts
|
Other
noncurrent assets
|
$ | 1,378 | $ | - | $ | - | $ | 1,378 | |||||
Liabilities:
|
||||||||||||||
Interest
rate swap
|
Other
long-term liabilities
|
$ | - | $ | 569 | $ | - | $ | 569 |
March
31,
|
December
31,
|
Three
Months Ended March 31,
|
||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
Other
long-term liabilities
|
$ | 574 | $ | 569 | ||||||||
Gain
(loss) recognized in other comprehensive income, net of
tax
|
$ | (3 | ) | $ | 41 |
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Interest
cost on projected benefit obligation
|
$ | 1,054 | $ | 1,067 | ||
Expected
return on plan assets
|
(1,108 | ) | (964 | ) | ||
Recognized
actuarial loss
|
275 | 303 | ||||
Net
periodic pension expense (income)
|
$ | 221 | $ | 406 |
Three
Months Ended
|
||||||
|
March
31,
|
|||||
|
2010
|
2009
|
||||
Cost
of products and services
|
$ | 73 | $ | 80 | ||
Selling,
general and administrative
|
90 | 111 | ||||
Total
share-based compensation expense
|
$ | 163 | $ | 191 |
Weighted
|
||||||||||||
Average
|
||||||||||||
|
Weighted
|
Remaining
|
||||||||||
|
Average
|
Contractual
|
Aggregate
|
|||||||||
Number
of
|
Exercise
|
Term
|
Intrinsic
|
|||||||||
Shares
|
Price
|
(in years)
|
Value
|
|||||||||
Outstanding
and exercisable at December 31, 2009
|
606,843 | $ | 9.62 | 1.5 | $ | 981 | ||||||
Granted
|
- | $ | - | |||||||||
Exercised
|
(20,100 | ) | $ | 7.59 | ||||||||
Cancelled
|
- | $ | - | |||||||||
Outstanding
and exercisable at March 31, 2010
|
586,743 | $ | 9.69 | 1.3 | $ | 1,266 |
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Amounts
realized or received from stock option exercises:
|
||||||
Cash
proceeds received
|
$ | 21 | $ | - | ||
Intrinsic
value realized
|
$ | 61 | $ | - | ||
Income
tax benefit realized
|
$ | 2 | $ | - |
Weighted
|
||||||
|
Average
|
|||||
|
Number
of
|
Grant-Date
|
||||
|
Shares
|
Fair Value
|
||||
Nonvested
at December 31, 2009
|
165,701 | $ | 9.39 | |||
Granted
|
5,500 | $ | 10.41 | |||
Vested
|
(38,252 | ) | $ | 8.96 | ||
Cancelled
|
(9,301 | ) | $ | 9.38 | ||
Nonvested
at March 31, 2010
|
123,648 | $ | 9.57 |
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Weighted
average shares outstanding - Basic
|
9,807,706 | 9,604,895 | ||||
Dilutive
effect of stock options and restricted stock grants
|
185,373 | 106,189 | ||||
Weighted
average shares outstanding - Diluted
|
9,993,079 | 9,711,084 |
|
·
|
Our
dependency on the Federal government and changes in federal spending
priorities;
|
|
·
|
Failure
to obtain new government contracts or retain existing
contracts;
|
|
·
|
The
effect of Federal government in-sourcing on our
business;
|
|
·
|
The
loss of skilled personnel;
|
|
·
|
The
risk of security breaches in systems we develop, install or
maintain;
|
|
·
|
Failure
by Congress to timely approve budgets governing spending by Federal
agencies;
|
|
·
|
Risks
due to government contract provisions providing for rights unfavorable to
us, including the ability to terminate contracts at any time for
convenience;
|
|
·
|
Potential
systems or service failures that could result in liability to our
company;
|
|
·
|
Risks
associated with various, complex Federal government procurement laws and
regulations;
|
|
·
|
Adverse
effects in the event of an unfavorable Federal audit of our
contracts;
|
|
·
|
Failure
to adequately safeguard confidential
information;
|
|
·
|
An
adverse outcome related to ongoing legal
proceedings;
|
|
·
|
Competitive
conditions in current markets and difficulties in entering new
markets;
|
|
·
|
Our
ability to maintain sufficient sources of financing and the risk that our
financing requirements should
increase;
|
|
·
|
The
adverse effect on earnings should our recorded goodwill from prior
investments become impaired; and
|
|
·
|
Economic
conditions in the United States and global market conditions that are
beyond our control.
|
Three
Months Ended March 31,
|
||||||||||||||
2010
|
2009
|
|||||||||||||
(in millions) |
$(1)
|
%(1)
|
$(1)
|
%(1)
|
||||||||||
Revenue
|
$ | 68.6 | $ | 67.2 | ||||||||||
Gross
profit
|
$ | 10.8 | 15.7 | % | $ | 11.3 | 16.8 | % | ||||||
Selling,
general and administrative
|
6.0 | 8.7 | % | 6.3 | 9.4 | % | ||||||||
Amortization
of intangible assets
|
0.4 | 0.6 | % | 1.0 | 1.4 | % | ||||||||
Operating
income
|
4.4 | 6.4 | % | 4.0 | 5.9 | % | ||||||||
Interest
expense, net
|
(0.4 | ) | (0.5 | )% | (0.6 | ) | (0.9 | )% | ||||||
Other
income, net
|
0.1 | 0.2 | % | 0.0 | 0.1 | % | ||||||||
Provision
for income taxes
|
1.4 | 34.1 | % | (2) | 1.4 | 42.4 | % | (2) | ||||||
Gain
(loss) from discontinued operations, net of tax benefit
|
0.1 | 0.2 | % | (0.2 | ) | (0.3 | )% | |||||||
Net
income
|
$ | 2.9 | 4.2 | % | $ | 1.8 | 2.6 | % |
(1)
|
Totals
may not add due to rounding.
|
(2)
|
The
percentage of provision for income taxes relates to a percentage of income
from continuing operations before income
taxes.
|
Three
Months Ended March 31,
|
||||||||||||
2010
|
2009
|
|||||||||||
(in
millions)
|
$(1)
|
%(1)
|
$(1)
|
%(1)
|
||||||||
National
defense and intelligence agencies
|
$ | 41.9 | 61.1 | % | $ | 37.2 | 55.3 | % | ||||
Homeland
security
|
12.9 | 18.9 | 13.1 | 19.5 | ||||||||
Federal
civilian agencies
|
8.3 | 12.1 | 10.8 | 16.1 | ||||||||
Total
revenue from federal agencies
|
63.2 | 92.1 | 61.1 | 90.9 | ||||||||
State
and local government agencies
|
5.4 | 7.9 | 5.8 | 8.7 | ||||||||
Other
|
- | - | 0.3 | 0.5 | ||||||||
Total
revenue
|
$ | 68.6 | 100.0 | % | $ | 67.2 | 100.0 | % |
(1)
|
Totals
may not add due to rounding.
|
Three
Months Ended
|
||||||
March
31,
|
||||||
2010
|
2009
|
|||||
Fixed
price, including service type contracts
|
47 | % | 37 | % | ||
Time
and materials
|
33 | 46 | ||||
Cost
reimbursable
|
20 | 17 | ||||
100 | % | 100 | % | |||
Prime
contract
|
72 | % | 72 | % | ||
Sub-contract
|
28 | 28 | ||||
100 | % | 100 | % |
March
31,
|
December
31,
|
|||||
(in
millions)
|
2010
|
2009
|
||||
Backlog:
|
||||||
Funded
|
$ | 171.9 | $ | 158.5 | ||
Unfunded
|
239.8 | 276.0 | ||||
Total
|
$ | 411.7 | $ | 434.5 |
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, 2010 to January 31, 2010
|
832 | $ | 10.39 | - | $ | - | |||||||
February
1, 2010 to February 29, 2010
|
- | $ | - | - | - | ||||||||
March
1, 2010 to March 31, 2010
|
24,118 | $ | 11.12 | - | - | ||||||||
Total
|
24,950 | $ | 11.10 | - | $ | - |
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
4, 2010
|
/s/
David Keleher
|
Senior
Vice President, Chief Financial Officer and Treasurer
|
|
(Principal
Financial Officer)
|
|
Date: May
4, 2010
|
/s/
Shaun N. McCarthy
|
Vice
President, Corporate Controller and Chief Accounting
Officer
|
|
(Principal
Accounting Officer)
|
|