MTC Technologies, Doing Business With The Government (MTCT)

Mar.15.06 | About: MTC Technologies (MTCT)

MTC Technologies (MTCT) reported a 27% increase in Q4 05 revenue and a 36% increase in full year revenue for 2005. EBTIDA for the year rose 40% and cash from operationg was excellent. Guidance for Q1 06 income was choppy, but that seems to be attributed to cost for options and amortization. It also appears that the top-line growth for the business may slow in calendar 2006.

But, I like this business long-term. The company provides systems integration, IT and program management for the Department of Defense and intelligence agencies. They work on weapons systems and national security.

According to ZDNetGovernment (government.zdnet.com), IT providers will be bidding on $200 billion in contracts this year. Some of the most critical technology upgrades are at the center of MTC's business. Due to the priorities set on military spending and national security, the prospects for this business should be very good.

Douglas A. McIntyre is the former Editor-in-Chief of Financial World Magazine and former Predident of Switchboad.com and chief executive of On2 Technologies, Inc.