HANOVER, Md., May 5, 2011 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation (Nasdaq:KEYW) announces Q1 2011 revenue of $41.7 million. This revenue represents strong growth both in quarter-over-quarter, and quarter-to-quarter comparisons. As we stated in our January 5, 2011 press release, we remain committed to providing periodic updates on the objective metrics which are meaningful to us as we operate KEYW and our performance to these metrics, and of course in full compliance with the securities laws and our obligations as a NASDAQ-listed company.
Our Q1 2011 revenue, as compared to revenue of $21.7 million in Q1 2010, represents an increase of approximately 92%. Net Income for Q1 2011 was approximately $100,000 compared to approximately $400,000 in Q1 2010. Earnings Per Share (EPS) were $0.00 (diluted) for Q1 2011 versus EPS for Q1 2010 of $0.02 (diluted). The combination of approximately $1.7 million in stock compensation expense and intangible amortization related to our 2010 acquisitions reduced our Q1 2011 EPS by approximately $0.05-0.06 per share.
The main drivers of our quarter-over-quarter growth were the acquisitions that occurred subsequent to March 31, 2010, including Sycamore and Everest, the impact of the TAG and IIT acquisitions made during the first quarter of 2010, and organic growth of our existing business. These acquisitions accounted for $15.8 million of the revenue increase. Organically, our services business grew at 22% quarter-over-quarter as a result of the expansion of our contract vehicles. Services gross margin increased both as a percentage of revenue and in total dollars in the quarter ended March 31, 2011 as compared with the quarter ended March 31, 2010.
"In Q1 2011, KEYW has continued to deliver strong growth and momentum for our stakeholders and we are pleased with these results," commented Leonard Moodispaw, CEO and President of KEYW Corporation. "This quarter our revenue exceeded our annual revenue for all of 2009. Since the beginning of 2011, we have completed two acquisitions while maintaining a sharp focus on the Intelligence Community and cyber superiority. The integration of our acquisitions into KEYW's strategic platform is proceeding extremely well. Our agility continues to be a defining differentiator for KEYW. It defines a business model and a culture that are critical to delivering solutions to our customers' toughest cyber superiority challenges."
Adjusted EBITDA for Q1 2011 was $3.3 million as compared with the same period of 2010, where our Adjusted EBITDA was $2.5 million. 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 employees and our total number of Staffed Positions, which includes personnel provided under subcontract to us for performance on our contracts, provides investors with insight into our business and growth. At March 31, 2011, we had 775 employees and the total number of Staffed Positions in our Services business increased from Q4 2010, to 710 Services Staffed Positions.
KEYW has scheduled a conference call to discuss these results today, May 5, 2011, at 5:00 p.m. (EDT). 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 1-866-317-6354. The International Dial-In access number will be 1-720-545-0086.
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. (EDT) on May 5, 2011, and will remain available through June 6, 2011. To access the dial-up replay, call 1-800-642-1687, Conference ID 59878190. 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 email@example.com, or on the Web at .
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 strong momentum in both our services and products businesses, and statements regarding our expectations for growth in our 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 Annual Report on Form 10-K, dated and filed March 29, 2011 with the Securities and Exchange Commission (SEC) as required under the Securities Act of 1934, 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