Parsippany, N.J.--Feb. 12, 1998--DRS Technologies, Inc. announcedrecord third quarter results and record results for the nine-month period ended December 31, 1997. The company also reported receiving a record amount of new business orders for the first nine months of fiscal 1998.
Revenues for the third quarter increased 30 percent to a record $49,915,000, compared with revenues of $38,379,000 reported for the same three-month period in the prior year. Net earnings of $1,560,000 set a quarterly record, rising 11 percent over $1,406,000 earned for the third quarter last year. Diluted earnings per share were $0.22, versus $0.21 for the same period a year ago.
For the first nine months of fiscal 1998, DRS Technologies reported a 29 percent increase in revenues of $127,650,000, a record for the period, over $99,242,000 posted for the same nine-month period a year earlier. Net earnings were 11 percent higher at $4,370,000, setting a new record for the first nine months, compared with $3,922,000 earned a year ago. Diluted earnings per share were $0.64, an 8 percent increase over $0.59 reported in the previous year, despite the effect of a restructuring charge of approximately $600,000, or $0.04 per diluted share in the second quarter.
The revenue growth during the third quarter was attributable primarily to shipments relating to the company's data recording system product lines and to the addition of revenues generated by the company's flight safety and communications product lines as a result of the acquisition during the quarter of the Applied Systems Divison of Spar Aerospace, Ltd., now named DRS Flight Safety and Communications. Higher revenues for the nine-month period were primarily due to shipments associated with the company's military display workstation, data recording and electro-optical systems product lines, as well as to increases in certain commercial product lines, which include revenues from businesses acquired in fiscal 1997.
DRS posted operating income of $3,715,000, a 14 percent increase over the $3,254,000 reported for the same period a year earlier. Operating income for the nine-month period was $9,899,000, 13 percent higher than $8,754,000 posted for the first three quarters of fiscal 1998.
The company received new contract orders valued at approximately $39.7 million and a record $159.7 million for the three- and nine-month periods of fiscal 1998, respectively, compared with $24.8 million and $68.9 million in new awards booked in the same periods last year. At December 31, 1997, the company's backlog set a record at approximately $170 million, 44 percent higher than backlog of approximately $119 million at the end of last year's third quarter.
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