NCI, Inc. Q2 2009 Earnings Call Transcript

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2009-08-06 04:57:12.0

Tags: Wells Fargo & Co., Call Transcript, Earnings, Jefferies & Co., NCI Inc., Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from Edward Caso - Wells Fargo Securities.

Edward Caso - Wells Fargo Securities

Can you just repeat the F&A and the stock comp numbers again? I missed that.

Judith L. Bjornaas

Sure. The stock comp for Q3 we're projecting to be $380,000 for third quarter and $1.4 million for the full year. And amortization, $1.2 million for third quarter and $4.4 million for the full year.

Edward Caso - Wells Fargo Securities

Last quarter you talked a little bit about Alliant. I was wondering if there's been any activity under that vehicle?

Terry W. Glasgow

As of now there's been very little activity on the full and open one. We've seen more activity on the small business portion of Alliant, which was awarded about four months before. So as we said last time, it is ramping up slow given the long duration of that protest period.

Edward Caso - Wells Fargo Securities

You've taken the EPS guidance up even though it appears that most of your revenue increase reflects the acquisition, which is neutral to earnings. Obviously, you did a little better in the quarter here. What's the other reason for the EPS guidance to go up this year?

Charles K. Narang

As we're looking at the course and the profitability and looking at the infrastructure that we have, and we're [inaudible] infrastructure knowing that there's a comparative pressure on our pricing structure. What we're doing is mitigating more and more comparative. So we're already in the process of looking at our infrastructure costs and so on and so forth, and we believe we can manage this EPS.

Operator

Your next question comes from Joseph Vafi - Jefferies & Co.

Joseph Vafi - Jefferies & Co.

I was wondering if we could talk a little bit about TRS and their contract structure, if it's similar to your long-term contracts or is it maybe shorter-term consulting work?

Terry W. Glasgow

Their contract basically is all done under agency specific ID/IQ contracts of which several large primes hold those contracts and these classified customers in effect direct work to specialty places like TRS. Their work typically runs like a normal task order would under one of those ID/IQ vehicles.

Joseph Vafi - Jefferies & Co.

So you're not really worried about the nature of the contracts and renewals coming up or lumpiness or fluctuations in the revenue stream here?

 

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