National Technical Systems, Inc., a leading provider of testing and engineering services, today reported its financial results for the fiscal 2012 first quarter ended April 30, 2011, with year-over-year and sequential increases in net revenues, and an increase in profitability from the fiscal 2011 fourth quarter.
However President and CEO William C. McGinnis said, as expected, that the first quarter results were negatively impacted by a continuation of the temporary weakness in the defense market and by delays in program funding caused by uncertainty arising from the federal government's prolonged budget approval process that began in the fiscal 2011 fourth quarter.
Net income attributable to NTS for the first quarter of fiscal 2012 was $560,000, or $0.05 per basic and diluted share, an improvement from a net loss of $321,000, or $.03 loss per basic and diluted share in the fiscal 2011 fourth quarter. Net income attributable to NTS for the first quarter of fiscal 2011 was $3.5 million, or $0.37 per basic share and $0.35 per diluted share, which included a one-time net-of-tax gain of $1.7 million, or $0.17 per diluted share, from the sale of land. Excluding the $1.7 million net-of-tax gain from the sale of land, fiscal 2011 first quarter net income was $1.8 million, or $0.18 per diluted share.
"The conditions that impacted us in the fourth quarter of last fiscal year severely affected us in February of the fiscal 2012 first quarter," McGinnis said. "However, with the alleviation of program funding delays, we experienced a steady increase in orders and rebounded very nicely in March and April bringing us back to a normalized revenue level."
Revenues for the fiscal 2012 first quarter were $37.5 million, up 9.1 percent from $34.4 million in the fiscal 2011 fourth quarter and up 3.8 percent from $36.1 million in the first quarter of fiscal 2011. Year-over-year organic growth in the fiscal 2012 first quarter was $0.8 million, while the acquisition of Mechtronic Solutions on December 16, 2010, accounted for $0.6 million of the increase.
McGinnis added that the Company's backlog as of April 30, 2011 was $57.8 million, which included $3.7 million for MSI compared to the backlog of $54.5 million on April 30, 2010 for an increase of 6 percent. "With a strong backlog, an increase in demand for our services and the momentum that began during this fiscal year's first quarter, we feel we are positioned for strong performance the rest of the year,".
Disclosure: The author has no long or short positions in National Technical Systems, Inc.
Forward-Looking Statements: Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially.