Andover, Mass.—February 27, 2008—Dynamics Research Corporation (Nasdaq: DRCO), a leading provider of innovative engineering, technical and information technology services and solutions to federal and state governments today announced operating results for the fourth quarter and year ended December 31, 2007.
Financial Results
The company reported revenue for the fourth quarter of 2007 of $56.5 million, compared with $60.3 million for the fourth quarter of 2006. For the year ended December 31, 2007 revenue was $229.6 million, compared with $259.0 million for 2006. Revenues for 2006 included $6.3 million from the completion of an Air National Guard contract in May 2006 and subcontractor revenue of $5.6 million for the fourth quarter and $28.1 million for the full year, which are not reflected in results for 2007. Absent the effect of this transition, revenue growth for the fourth quarter and full year 2007 was 3.2 percent and 2.2 percent, respectively. Net income for the fourth quarter of 2007 was $2.5 million, or $0.26 per diluted share for the fourth quarter of 2007, a 63 percent rise in earnings per diluted share when compared with $1.5 million, or $0.16 per diluted share, for the fourth quarter of 2006. Net income for the year ended December 31, 2007 was $7.1 million, or $0.74 per diluted share for 2007, compared with $4.1 million, or $0.43 per share for 2006.
Business Highlights
“We are pleased that the company has reported sharply improving results throughout 2007. These favorable trends have resulted from our sustained focus on winning an increasing share of work in growing markets where we are seeing strong demand for the high quality, higher-end business transformation, business intelligence, training systems, automated case management, and engineering services for which DRC is known and distinguished,” said Jim Regan, DRC’s chairman and chief executive officer. “We already have received this year two significant new contract awards. Also, we are now operating and bidding as a prime contractor with the Air Force Aeronautical Systems Center. Clearly, we are well positioned for continued success in 2008.”
Company Guidance
For the calendar year 2008 the company estimates revenues in the range of $220 to $235 million and earnings per diluted share in the range of $0.74 to $0.84. For the first quarter of the 2008 the company anticipates revenues in the range of $54 to $56 million and earnings per diluted share of $0.13 to $0.15.
Conference Call
The company will conduct a fourth quarter 2007 conference call on Thursday, February 28, 2008 at 10:00 a.m. ET. The call will be available via telephone at (877) 718-5092, and accessible via Web cast at www.drc.com. Recorded replays of the conference call will be available on Dynamics Research Corporation’s investor relations home page at www.drc.com and by telephone at (888) 203-1112, passcode #2824839, beginning at 12:30 p.m. ET February 28, 2008 through 11:59 p.m. ET February 29, 2008.
About Dynamics Research Corporation
Dynamics Research Corporation is a leading provider of mission-critical technology management services and solutions 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; Reston, Virginia; and Fairborn, Ohio. For additional information about DRC please visit our website at www.drc.com.
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.
