Attributes the loss to a drop in industry demand and slower clinical development sales
Technology and consulting services provider SRA International has cut its 2009 forecasts after a 40% decline in net income to $10.83m for the second quarter 2009, compared to net income of $17.9m in the year-ago quarter, on revenue down 3% at $369.3m.
It attributed the decline to a drop in industry demand and slower clinical development sales.
Operating income during the quarter fell 34% to $19.49m, while diluted EPS fell 37% to $0.19. The company won $329m worth of new business and its backlog of signed business remained flat at $3.9 billion, while funded backlog increased 5% year-over-year to $802m.
For the first half the company reported a 28% decline in net income to $26.24m, compared to net income of $36.45m in the year-ago quarter, on revenue up 2% at $761.67m.
The company also announced the appointment of its corporate controller Melissa Burgum as acting CFO of the company.
Stan Sloane, president and chief executive at SRA, said: We’re disappointed in these second-quarter results, and we have taken steps to improve our performance going forward. The large new business wins we’ve had early in the third quarter will support our organic growth efforts.
For fiscal 2009, the company updated its revenue forecast from the earlier $1.54 billion to $1.60 billion range to $1.51 billion to $1.54 billion. It also reduced its diluted EPS guidance from $1.12 to $1.22 range to $0.94 to $1.00.