Industry Week in Review – November 2, 2012
Over the past week, the Department of Defense (“DoD”) has continued to support Federal Emergency Management Agency (“FEMA”) and other federal partners including U.S. Northern Command and the National Guard to relieve the effects of Hurricane Sandy. As of Tuesday morning, there were approximately 7,400 National Guard members mobilized in 11 states. Assistance included evacuation shelters, route clearance, search and rescue and delivery of essential equipment and supplies. Twelve states and the District of Columbia declared a state of emergency due to the significant flooding and extensive power outages.
In other news, James Clapper, Director of National Intelligence, released a statement on Tuesday noting the FY2012 National Intelligence Programs budget is $53.9 billion, a 1% decrease from the previous year. Earlier this year, Clapper announced the budget for FY2013 would drop further to $52.6 billion, an additional 2.4% decline. Separately, the DoD stated the Military Intelligence Program FY2012 budget is $21.5 billion, a roughly 11% decrease over the previous year.
EDAC Technologies (Up 11.1%) – Shares were up this week after the company released strong 3Q12 results including record sales of $27.5 million. The company reported EPS of $0.29, a 53% increase over 3Q11.
Intevac Inc. (Down 7.3%) – Shares were down this week after the company reported poor 3Q12 results including a net loss of $8.0 million and a $3.0 million bad debt write-off equivalent to $0.08 per share. President and CEO Kevin Fairbairn noted “As expected, our Equipment business had a challenging quarter driven principally by the difficult economic environment and moderated demand for hard drives.”
Creative Computing Solutions (“CCSi”) acquired a privately held company’s Military Health Solutions division, which held a prime contract position on MHS TRICARE Evaluation, Analysis, and Management Support (“TEAMS”) IDIQ vehicle. The acquisition expands CCSi’s support to include Health Insurance Portability and Accountability Act (“HIPAA”) Electronic Standards Program Coordination and Analysis, adding to its current work on the Defense Centers of Excellence (“DCoE”) Program Management, Clinical and Program Policy, and Defense Health Board Support.