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 SPRINGFIELD, Va., Nov. 10 /PRNewswire/ -- Versar, Inc. (AMEX: VSR), today reported financial results for the fiscal year 1994 first quarter period ended Sept. 30, 1993. Gross revenue for the first quarter increased to $12,189,000, a 12 percent increase from gross revenue of $10,862,000 for the first quarter last year. Net income for the quarter was $640,000, or 15 cents per share, compared to a net loss of $412,000, or (10 cents) per share for the comparable period a year ago. In the first quarter of fiscal year 1994, Versar adopted Statement of Financial Accounting Standards No. 109 (SFAS 109), "Accounting for Income Taxes" which requires the company to compute deferred taxes using the liability method. The effect on earnings of the change of accounting for income taxes was $556,000. Income before the accounting change was $84,000, or 2 cents per share, compared to a net loss of $412,000, or (10 cents) per share for the same period last year.
 Ben Rawls, president and CEO of Versar, Inc., said: "Our aggressive marketing effort continues to bring in new orders for the company. During the first quarter, Versar was awarded a $2 million, three-year contract to support pollution prevention research for the U.S. Army Construction Engineering Research Laboratory (CERL); a $2 million, three-year contract for environmental guidance and training development to the U.S. Army Mandatory Center of Expertise; and a $25 million subcontract effort to OHM Remediation Services in support of the Navy remedial action construction activities. The growth in new orders strengthened our ability to generate higher revenue and to focus on our commitment of long-term growth and profitability.
 "We are pleased to report the progress we have made and the marketing successes we have reported. However, we continue to experience contract delays that occur from the time of an announced contract award to the actual funding of a work assignment. These delays will make our second quarter challenging and could adversely affect performance. The second half of fiscal year 1994 and long-term outlook continues to be positive due to improved cash flow, lower debt, higher backlog, tax benefits and a more competitive cost structure. We are well positioned to take advantage of a meaningful recovery in the economy."
 Versar, Inc., headquartered in Springfield, is a publicly held, national environmental consulting company which provides a wide variety of scientific

and technical services to help industry and government prevent pollution, manage environmental compliance and correct environmental and health and safety problems caused by pollution, hazardous materials and toxic substances.
 Consolidated Statements of Operations
 (Unaudited -- in thousands, except per share amounts)
 For the Three-Month Periods
 Ended Sept. 30,
 1993 1992
 Gross Revenue $12,189 $10,862
 Purchased services & materials
 at cost 3,206 2,259
 Net Service Revenue 8,983 8,603
 Direct costs of services and overhead 7,309 7,338
 Selling, general
 & administrative expenses 1,293 1,300
 Other costs (income) (19) (33)
 Operating Income (Loss) 400 (2)
 Other Expense
 Interest expense 309 396
 Income tax expense 7 14
 Income (Loss) Before Extraordinary Item 84 (412)
 Extraordinary Income Cumulative Effect
 of Adoption of SFAS 109 556 --
 Net Income (Loss) $ 640 $ (412)
 Income (Loss) Per Share Before
 Extraordinary Item $ 0.02 $ (0.10)
 Income Per Share
 From Extraordinary Item $ 0.13 $ 0.00
 Net Income (Loss) Per Share $ 0.15 $ (0.10)
 Weighted Average Number
 of Shares Outstanding 4,376 3,953
 -0- 11/10/93
 /CONTACT: James D. Russo for Versar, 703-642-6987/

CO: Versar, Inc. ST: Virginia IN: CPR SU: ERN

DC-MH -- DC015 -- 2762 11/10/93 12:26 EST
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Publication:PR Newswire
Date:Nov 10, 1993

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