Integral Systems Posts Higher 1Q Profit
Monday May 9, 1:12 pm ET
Integral Systems Reports 11 Percent Rise in 1Q Profit, Sees 2005 Results Similar to 2004
LANHAM, Md. (AP) -- Satellite ground systems provider Integral Systems Inc. said first-quarter earnings increased 11 percent from last year, due to revenue growth in the company's Air Force ground systems business and RT Logic unit.
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Net income rose to $2 million, or 20 cents per share, from $1.8 million, or 18 cents per share, a year ago. Revenue grew 4 percent to $23.3 million from $22.5 million last year.
Steven R. Chamberlain, Chairman and Chief Executive Officer, said, "Perhaps more importantly our recent and extensive proposal effort paid off as we were awarded a contract with Space and Missiles System Center on behalf of U.S. Air Force, Air Force Space Command, for the first developmental step of the RAIDRS (Rapid Attack Identification Detection Reporting System) program. The contract has a total value of some $123 million and should be a significant source of revenue for the parent company and all of our subsidiaries."
However, the company said it was "disappointed" with results in its SAT unit, which posted a quarterly operating loss of more than $500,000. Integral Systems cited delays in expected new orders as well as $120,000 of charges related to a software shipment that wasn't accepted by the customer.
"While the prospects for this entity are bright in the long term, particularly as SAT's products are delivered to the RAIDRS program starting in 2007, we intend to revisit the subsidiary's cost structure in the short term to make sure this doesn't happen again," said Chamberlain.
The company reiterated that fiscal 2005 results will be similar to 2004, when it reported earnings of $6.8 million on sales of $90.3 million.
Integral Systems shares fell 19 cents to $20.51 in afternoon trading on the Nasdaq.
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