Exelis reports declines in both sales and profit in 2013

March 9, 2014

McLean-based contractor Exelis said last month that its revenue and profit fell in 2013, and the company cut employees and facilities to bring down its costs.

The company reported annual profit of $281 million ($1.46 per share) in 2013, down nearly 15 percent from 2012. Sales declined almost 13 percent to $4.8 billion.

David F. Melcher , Exelis’s chief executive, said in a call with analysts late last month that the contractor cut its square footage by 13 percent and its head count by 14 percent.

“We also challenged our team to reduce discretionary expenses and reevaluate our [research and development] spending,” Melcher said.

The company is boosting its international sales to make up for reduced U.S. federal spending. Melcher said international customers accounted for 11 percent of revenue in 2013, and he expects that share to grow in 2014.

“In particular, we see significant international opportunities for our electronic warfare systems, communication systems, radars and night vision goggles,” he added.

ICF reports profit, sales boosts in 2013

Bucking the trend of many government contractors, Fairfax-based ICF International reported last month modest increases in its sales and profit in 2013.

The company said revenue hit $949 million for the year, up about 1.3 percent from 2012. ICF’s profit rose 3.3 percent to $38.1 million ($1.91 per share).

Sudhakar Kesavan , ICF’s chief executive, said the contractor’s sales took a hit from the government shutdown, but its growing commercial and international government work offset the decline.

In 2013, he told analysts, ICF’s commercial and international government work made up 33 percent of its revenue, up from 30 percent in 2012.

“We remain committed to our federal business and to state and local government work,” Kesavan said. “We are allocating our resources in those areas that we expect to continue to be resilient, which include health, energy and infrastructure.”

GAO rejects IMC protest

The Government Accountability Office has denied a protest filed by Dulles-based Innovative Management Concepts against an Army award made to Colorado Springs-based Veteran Engineering & Technology for information technology management services.

The award was made through the General Services Administration’s Veterans Technology Services contract vehicle. IMC contested the agency’s evaluation of proposals and argued that it was biased in favor of VETS, but the GAO said it found no basis to question the award.

GAO denies Wolf Creek protest

The GAO has also rejected a protest filed by Anchorage-based Wolf Creek Federal Services against a NASA contract awarded to Lanham-based Helix Management Services for facilities operations and maintenance support services.

Though Helix proposed a higher price of $29.3 million to Wolf Creek’s $26.9 million, the agency gave Helix higher ratings and decided its proposal represented the best value.

Though Wolf Creek contested the decision, the GAO said it found no basis to object to NASA’s evaluation.

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