(from www.sec.gov)
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GRC International Inc. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 124,500 | (9.7) |
| Net Income | (17,100) | -- |
Description:
GRC International provides professional services to the federal government, primarily the development of customized computer systems. The company specializes in creating information systems for telecommunications, materials testing and strategic missile defense operations. In 1996 GRC also developed and sold commercial telecommunications products, specifically a hardware device to evaluate the performance of fiber-optic networks and a software tool to design certain kinds of computer networks.
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After spending $43 million over three years to develop its commercial telecommunications products, GRC decided in February to sell that part of its business. The company had concluded the market for the products would not expand for another two years. Keeping the division alive would have cost the company about $2 million a month, which chief executive Jim Roth said GRC couldn't afford.
In the quarter that ended Dec. 31, the company said it lost $19.1 million, which included a $14.3 million write-down of deferred costs for software and other expenses related to telecommunications product development.
That loss and one the previous quarter led investors to pummel the company's stock. After hitting a high of more than $44 in June, GRC shares had fallen to $4.75 on Friday.
The company also said it will sell its advanced products division, which conducts materials testing, develops environmental software and makes high-end security systems.
Despite problems in the commercial market, GRC said its professional services business is healthy. The company does about 90 percent of its business with the Defense Department and other government agencies.
