Shares of Versar Inc. (Amex: VSR) jumped up 20 percent in early trading today after it announced record revenues and profits for the third quarter of fiscal 2007. The company’s stock rose $1.06 to $6.30 per share on volume of 337,100. If this activity holds, Versar will eclipse its current 52-week high of $5.50 per share.
Revenue for the third quarter of fiscal 2007 was $28.3 million, representing a 118 percent increase versus the $13 million reported in the third quarter of fiscal 2006. Versar attributed most of the increase to the company’s additional revenue associated with its personnel services and Title II work in Iraq.
“The positive results of this third quarter indicate to us that we are moving in the right direction,” stated Dr. Ted Prociv – president and CEO of Versar – in a press release. “As I have said many times before, the transformation is a journey, not a destination. We expect continued improvement as our strategy continues to develop.”
Net income was even more impressive as Versar’s numbers more than tripled previous year results. For third quarter of fiscal 2007, the company reported net income of $3.1 million, or 36 cents per share, versus net income of $912,000, or 11 cents per share, for the third quarter of 2006.
Dr. Prociv continued with comments on Versar’s outlook for 2007, “At this point, I believe that Versar will have a very successful year and there is a substantial base for similar results in the coming year.”
Versar provides professional services to the government and private sectors in the United States. It operates through two segments, Infrastructure and Management Services, and National Security. The Infrastructure and Management Services segment provides environmental compliance management, environmental restoration, and environmental conservation services, as well as engineering, design and construction management services. The National Security segment provides a range of testing, evaluation, system integration and field support services in the chemical domain.