DRC Reports Fourth Quarter and Year-End 2011 Results

Dynamics Technology Corporation, a leading provider of innovative management consulting, engineering, science and information research services and solutions to federal and state governments, today announced operating results for the fourth quarter and year ended December 31, 2011.

The fourth quarter of 2011 revenue

For the fourth quarter of 2011 revenue was $88.2 million, up 26 percent from $69.8 million in the fourth quarter of 2010, reflecting the addition of HPTi. For the year 2011 revenue was $322.6 million, up 19 percent from $272.1 million for 2010. 

Free cash flow was $13.9 million and $26.6 million for the fourth quarter and full year 2011, respectively. Free cash flow yield, expressed as a percentage of revenue, was better than 8 percent for the full year 2011.

The Company as well reported that its pipeline of qualified new business contract opportunities currently stands at $839 million, up 48 percent from a year ago.

The merger of DRC

"With the merger of DRC and High Performance Technologies in 2011, we embraced a tremendous, transformational possibility for our employees, clients and investors alike," said Jim Regan, DRC's chairman and chief executive officer. "In just six months, since consummating the transaction at the end of June, we have successfully completed the organizational and systems integration of these two great entities, reduced debt assumed with the merger by $30 million, and built a pipeline of potential new business totaling some $4.3 billion -- more than double the amount a year ago.

"During DRC is stronger than it's ever been, federal government fiscal challenges have dampened our growth outlook somewhat and impacted our financial results. Recognizing and responding to these challenges, we have built a large and growing pipeline of qualified new business opportunities, which as late as this has yielded $243 million of bids submitted and awaiting award. As we look ahead we are among the best positioned professional services companies in the federal market and will remain so for 2012 and beyond. We have outstanding capabilities and strengths in cloud computing, systems engineering, high performance computing, cyber security, healthcare, and homeland security. With this unequalled portfolio and an in the extreme talented workforce, we will navigate the coming quarters and continue to build a bright future for DRC."

The Company's estimate of revenue for 2012 is in the range of $353 to $363 million, reflecting anticipated top-line growth of 9 to 13 percent. For the first quarter of 2012, revenue is projected at $83 to $86 million, reflecting growth of 19 to 24 percent.