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KEYW Reports Q4 and 2010 Financial Results

HANOVER, Md., Feb. 7, 2011 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation (Nasdaq:KEYW) announces revenue for 2010 of $108.0 million as compared to $39.0 million in 2009, an increase of approximately 175%. Net and Total Comprehensive Income for 2010 was $10.9 million compared to a Loss for 2009 of ($2.1) million. Earnings Per Share (EPS) were $0.51 (diluted) for 2010 versus EPS for 2009 of ($0.18) (diluted). Income Before Income Taxes for 2010 was $18.7 million compared to Loss Before Income Taxes of ($3.1) million for 2009.
/ Source: GlobeNewswire

HANOVER, Md., Feb. 7, 2011 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation (Nasdaq:KEYW) announces revenue for 2010 of $108.0 million as compared to $39.0 million in 2009, an increase of approximately 175%. Net and Total Comprehensive Income for 2010 was $10.9 million compared to a Loss for 2009 of ($2.1) million. Earnings Per Share (EPS) were $0.51 (diluted) for 2010 versus EPS for 2009 of ($0.18) (diluted). Income Before Income Taxes for 2010 was $18.7 million compared to Loss Before Income Taxes of ($3.1) million for 2009.

For Q4 of 2010, KEYW generated $29.3 million in revenue versus $12.1 million in the same period of 2009. Net income was $1.2 million and $0.4 million for the fourth quarters of 2010 and 2009, respectively. EPS for these same periods were $0.04 (diluted) in 2010 and $0.02 (diluted) in 2009. Revenue in Q4 2010 was below expectations due to delays in expected product orders during the quarter. Since the beginning of 2011, we have seen product orders return to prior quarter levels. Gross Margin (including both products and services) in Q4 was 29.1% which continues in-line with Gross Margin 29.2% across the full year 2010. 

 "2010 was a year of significant growth and accomplishment for KEYW," commented Leonard Moodispaw, CEO and President of KEYW Corporation. "During 2010 we completed 4 acquisitions, increased our revenue by over 175%, and completed our initial public offering. We now have a workforce of over 700 people, approximately 80% of whom hold TS/SCI clearances, and have contracts with almost 50% of the Intelligence Community (IC) agencies. We begin 2011 with zero debt, a robust pipeline of strategic acquisition candidates, strong momentum in both our services and products businesses, and a clear focus and differentiation in delivering agile solutions to the IC's toughest cyber challenges. With this momentum and our energized team, we believe 2011 will be another year of significant growth and accomplishment."

KEYW Adjusted EBITDA for Q4 2010 was $1.4 million, resulting in an Adjusted EBITDA margin of 4.6%. For 2010, our Adjusted EBITDA was $9.0 million and the Adjusted EBITDA margin was 8.4%. Adjusted EBITDA, as defined by KEYW, is a non-GAAP measure that is calculated as GAAP net income plus other non-recurring expense, interest expense, income taxes, and depreciation and amortization. We have provided Adjusted EBITDA because we use the measurement internally to evaluate performance and we believe it is a commonly used measure of financial performance in comparable companies. It is provided to help investors evaluate companies on a consistent basis, as well as to enhance an understanding of our operating results.  In addition, our board of directors and management use Adjusted EBITDA:

  • As a measure of operating performance;
  • To determine a significant portion of management's incentive compensation;
  • For planning purposes, including the preparation of our annual operating budget; and
  • To evaluate the effectiveness of our business strategies.

Adjusted EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to net income as a measure of operating performance or the cash flows from operating activities as a measure of liquidity. Please refer to the table below that reconciles GAAP net income to Adjusted EBITDA.

In addition to these traditional financial metrics, we believe that our total number of KEYW employees and the total number of Staffed Positions, which includes personnel provided under subcontract to KEYW for performance on KEYW contracts, will provide investors with insight into our business and growth. At the close of 2010, we had 722 employees and a total number of Staffed Positions in our services business of 681, which is an increase of over 50% from the total number of Staffed Positions reported for Q3 2010.

KEYW has scheduled a conference call to discuss these results today, February 7, 2011, at 5:00 p.m. (EST). Interested parties will be able to connect to our Webcast via the Investor page on our website, .  Interested parties may also listen to the conference call by calling 1-877-853-5645. The International Dial-In access number will be 1-408-940-3868.

An archive of the Webcast will be available on our webpage following the call. In addition, a dial-up replay of the call will be available at approximately 7:00 p.m. (EST) on February 7, 2011, and will remain available through March 7, 2011. To access the dial-up replay, call 1-800-642-1687, Conference ID 36520824. In addition, a podcast of our conference call will be available for download from our Investors page of our website at approximately the same time as the dial-up replay. International callers may access the replay by calling 1-706-645-9291, with the same passcode.

About KEYW: KEYW provides agile cyber superiority and cybersecurity solutions, primarily for U.S. Government intelligence and defense customers. We create our solutions by combining our services and expertise with hardware, software, and proprietary technology to meet our customers' requirements. For more information contact KEYW Corporation, 1334 Ashton Road, Hanover, Maryland 21076; Phone 443-270-5300; Fax 443-270-5301; E-mail investors@keywcorp.com, or on the Web at www.keywcorp.com.

Forward-Looking Statements: Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.    Such statements include but are not limited to statements about our future expectations, plans and prospects, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "potential," and similar expressions, including statements regarding our beginning 2011 with strong momentum in both our services and products businesses, statements that we believe 2011 will be another year of significant growth and accomplishment and statements that the total number of personnel and Staffed Positions provide insight into our business and growth. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements. These statements involve numerous risks and uncertainties, including but not limited to those risk factors set forth in our prospectus, dated September 30, 2010 and filed with the Securities and Exchange Commission (SEC) on October 1, 2010 pursuant to Rule 424(b)(4) under the Securities Act of 1933, and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. KEYW is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

CONTACT: Ed Jaehne Chief Strategy Officer 443-270-5300