Thursday, January 20, 2011

Global Defense Technology & Systems (GTEC) Posts Revised Q4 Figures, 2011 Guidance

Global Defense Technology & Systems Inc., a provider of mission-critical, technology-based systems, solutions and services for national security agencies and programs of the U.S. government, today revised its fourth quarter 2010 guidance upward and provided initial full-year 2011 guidance.

The company’s fourth quarter and full year 2010 results are still subject to completion of its year-end financial audit.

GTEC’s revised fourth quarter 2010 guidance anticipates revenue of approximately $82 million, an increase of 47 percent compared to $55.8 million reported in the fourth quarter of 2009. The increase represents pro forma organic revenue growth of 37 percent, a figure derived by adding fourth quarter 2009 revenue for Zytel Corporation (Zytel) and the period from December 18, 2009 through December 31, 2009, for Signature Government Solutions LLC (SGS) to GTEC’s 2009 fourth-quarter revenue.

GTEC said it anticipates better-than-expected operating margins for the fourth quarter based on its successful completion of existing TIS tasks and the addition of higher margin programs from Zytel and SGS.

For the full year 2010, GTEC’s updated guidance anticipates revenue of approximately $232 million, or $0.95 diluted earnings per share, up 9 percent compared to $212.8 million reported for full year 2009.

GTEC anticipates 2011 full year revenue of $315 million to $325 million and EPS of $1.20 to $1.30 per share, representing total revenue growth of 36 percent to 40 percent based on the revised 2010 guidance of approximately $232 million and pro forma organic revenue growth of 12 percent to 16 percent. The company bases its forecast on strong demand for its security solutions, as well as on visibility for its new contract awards and expansion of existing contracts.

“In the second half of 2010 we gained substantial momentum from significant new contract awards and the completion of two significant acquisitions. Combined, these elements provide heightened visibility to our 2011 outlook,” John Hillen, president and CEO of GTEC stated in the press release. “GTEC’s strategic positioning in priority mission areas – counterterrorism, cyber operations, C4ISR and force mobility – will continue to drive an organic growth outlook which is well above the industry average.”

GTEC said its two reporting segments, TIS and FMMS, are poised for strong growth in 2011 as they evolve to meet the demand of the company’s national security customer base. As such, GTEC’s guidance includes Zytel and SGS contributions to fourth quarter 2010 results and expected 2011 operating results but does not include any other future acquisitions or divestitures.

“We are poised for an exceptional growth year for both revenue and earnings as demonstrated by our initial 2011 outlook, which anticipates strong organic revenue growth and expanding operating margins,” said Joseph Cormier, executive vice president and CFO of GTEC stated. “We are already seeing the benefit from shifting our business mix toward our TIS segment, which should represent approximately 60 percent of our revenue base by the end of 2011, as it is positioned in the fast growing segments of the marketplace.”

For more information visit http://www.gtec-inc.com

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