National Technical Systems Posts 2Q Results

National Technical Systems announced results for its fiscal 2010 second quarter and six months ended July 31.

In a release dated September 14, the company stated:

- Total revenues for the second quarter decreased 6.2 percent to $28,736,000, compared to $30,625,000 for the same period in the prior year.

- Total revenues for the six months ended July 31, increased 0.4 percent to $57,428,000, compared to $57,185,000 for the same period in the prior year.

- Net income from continuing operations for the quarter decreased 16.4 percent to $852,000 as compared to $1,019,000 for the same period in the prior year with corresponding diluted earnings per share of $0.09 in the current period compared to $0.11 for the same quarter in the prior year.

- Net income from continuing operations for the six months ended July 31, decreased 20.6 percent to $1,392,000 as compared to $1,754,000 for the same period in the prior year with corresponding diluted earnings per share of $0.15 in the current period compared to $0.18 for the same period in the prior year.

CEO William C. McGinnis said, "I'm encouraged by our second quarter results, considering the challenging economic environment. New orders booked on average have increased 10 percent compared to the same period last year. Aerospace and defense orders continue to show strong growth while offset slightly by a moderate decline in orders in the automotive, power products and telecommunications markets. Backlog remains strong with a 6.6 percent increase compared to the same period last year. Additional revenues from our acquisition of Elliott Laboratories were $2,145,000 for the six months period in the current year. We believe we are increasing our market share by continuing to invest in additional capabilities and improving our internal processes.

"Our current year results include significant costs that will help improve our company's competitive advantage and future growth. The addition of new business development talent will increase our capability of providing product design, product development and product prototyping services as part of our overall integrated engineering services offering. Our investment in a new Enterprise Resource Planning (ERP) system will improve our internal processes and efficiencies. I believe we are well positioned to grow our company both organically and through acquisitions."

National Technical Systems is a provider of integrated engineering services to the defense, aerospace, telecommunications, automotive and high technology markets.

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