VIENNA, Va., Nov. 4 /PRNewswire/ -- GRC International (NYSE: GRH)
President and CEO Gary Denman announced during an interview yesterday that
GRCI is one of three companies awarded a $48.5 million contract to provide
technical engineering services in support of Air Force information warfare and
command and control programs. "This win," Dr. Denman said, "along with other
contracts we are currently negotiating will be added to our record maximum
contract backlog, which I anticipate will approach $600 million. This further
strengthens my confidence that we will be able achieve our previously stated
goals of growing revenues 10% to 20% this year and doubling revenues within
three years."
Dr. Denman went on to report during his November 3 Bloomberg interview
that he anticipates the company will generate revenues of approximately $36
million during the second quarter of fiscal 1999, ending Dec. 31, 1998. This
represents an increase of about 20% over the second quarter of fiscal 1998.
"At a $36 million revenue run-rate," Dr. Denman said, "we should be able
to generate earnings before interest and taxes (EBIT) of approximately $1.7
million to $1.8 million. That would be an improvement of about 50% over last
year's second quarter and clearly demonstrates our growth strategy of pursuing
prime contracts and system integrator contracts is sustainable."
Dr. Denman projected earnings before taxes (EBT) of approximately $1.4
million, which would represent about 100% growth compared to last year's
second quarter. He emphasized the importance of EBT as the primary measure of
GRCI's profitability, rather than net income, which includes a substantial tax
benefit.
"Due to net operating losses available to us," Dr. Denman continued, "we
essentially will be free from paying taxes for at least five to six years and
we will benefit from enhanced cash flow, as a result. This beneficial tax
treatment and our continued reduction in debt and interest along with strong
operations performance should enable the doubling of EBT this quarter.
"This robust operating performance reflects our continued focus on our
core business, a substantial investment in marketing and business development,
and the healthy nature of our market within the federal government."
Annual Goals
Addressing annual financial goals, Dr. Denman told the Bloomberg reporter
that the company is on course to achieve its annual revenue growth goals of
10% to 20%, and remains confident that the company is on course to achieve the
goal of 10% improvement in operating margins.
GRC International Inc., with headquarters in Vienna, Va., is a
professional services company that uses advanced computer, engineering, and
scientific technologies to help its government and commercial customers
fulfill their critical missions. Since 1961, GRCI has succeeded by providing
analytical services and tools; designing and integrating effective information
systems; and developing innovative technology-based solutions. GRC
International is publicly traded on the New York Stock Exchange under the
symbol GRH. Details about the company can be obtained on the Internet at
http://www.grci.com/ and from Company News On-Call at
http://www.prnewswire.com/.
Forward-looking statements contained in this release are subject to risks
and uncertainties that could cause actual results to differ materially. These
risks and uncertainties include the company's dependence on continued funding
of U.S. Department of Defense (DoD) programs; government contract procurement
and termination risks; the company's ability to fill required staff positions
to service the contracts granted under the DoD programs; the risk that the
company will not be sufficiently prepared for the Y2K problem and/or that the
company may incur Y2K-related liabilities; and other risks described in the
company's Securities and Exchange Commission filings.
SOURCE GRC International Inc.
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Related links:
http://www.grci.com
Company News On-Call:
http://www.prnewswire.com/comp/320275.html or fax,
800-758-5804, ext. 320275
CONTACT:
Wayne Jackson, Director, Corporate
Communications of GRCI, 703-506-5038
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