Booz Allen upbeat about backlog and growth despite earnings dip
Despite a dip in revenue profits in its latest quarter, Booz Allen Hamilton reported a strong backlog of business in a tough market climate for government contractors and stated its intent to grow in key areas.
Revenue in the second quarter of fiscal 2013 that ended Sept. 30 was $1.39 billion, compared with $1.43 billion in the prior year period, a decrease of 2.9 percent, the company reported Oct. 31.
The decline in revenue, which was consistent with the management and technology consulting company's forecast, was largely due to a reduction in billable expenses and a lower ratio of indirect costs to direct labor compared with the prior year period.
Booz Allen's net income dropped nearly 39 percent in the second quarter, falling $29.2 million, from $75.3 million in the same quarter last year to $46.1 million this year.
But company officials pointed to solid earnings growth after adjustments for non-recurring items were made. The company's adjusted net income increased to $55.7 million from $50.6 million in the prior year period.
The company has the cash flow and resources to invest in growth areas through "strategically attractive acquisitions," said Ralph Shrader, Booz Allen's chairman, CEO and president.
Referring to its acquisition of the Defense Systems Engineering and Support Division of ARINC, Shrader said, the "acquisition will add to our engineering capabilities and brings us scale and specialized expertise in C4ISR, prototyping, specialized software development, and analytics."
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William Welsh is the managing editor of Defense Systems. Follow him on Twitter: @WilliamWelsh12.