MENLO PARK, Calif., Oct. 17 Exponent, Inc.(Nasdaq: EXPO) today reported financial results for the third quarter and ninemonths ended September 28, 2007.
For the third quarter of 2007, total revenues increased 13% to$48,904,000, as compared to $43,333,000, in the same period of 2006. Revenuesbefore reimbursements grew 12% to $44,916,000, as compared to $40,049,000,last year. Net income increased 35% to $5,037,000, or $0.31 per dilutedshare, as compared to $3,743,000, or $0.22 per diluted share, in 2006.
EBITDAS(1) for the third quarter of 2007 increased 32% to $10,272,000, ascompared to $7,766,000 in the same period of 2006. Exponent closed the thirdquarter of 2007 with $52.5 million in cash, cash equivalents and short-terminvestments. During the quarter, Exponent repurchased $7.7 million of commonstock as part of its ongoing repurchase program.
"Our quarter was marked by double-digit revenue growth and improvedmargins, which contributed to strong bottom line results," commented MichaelR. Gaulke, Chairman and CEO. "On the revenue side, we had notable performancein our electrical and semiconductors, thermal sciences, human factors,mechanics and materials, and ecological sciences practices, in addition to ourhealth group. Our improved margins resulted from increased utilization andleverage of our infrastructure."
For the nine months ended September 28, 2007, revenues have grown 17% to$148,414,000, compared to $127,014,000 in the same period of 2006. Revenuesbefore reimbursements have increased 15% to $136,165,000, compared to$118,721,000, last year. Net income increased 35% to $15,094,000, or $0.92per diluted share, as compared to $11,215,000, or $0.64 per diluted share, in2006. EBITDAS(1) increased 36% to $31,172,000, as compared to $22,891,000 forthe same period one year ago.
"During the year we have continued to drive strong performance across abroad set of practices and are well positioned for long-term growth in manyareas, including health sciences consulting, product design consulting, energyconsulting, and defense technology development. Exponent remains uniquelypositioned as a leading multidisciplinary engineering and scientificconsulting firm dedicated to helping our clients solve their challengingtechnical problems," concluded Mr. Gaulke.
In a related release today, Exponent announced that it has been awarded acontract to deliver additional Rapid Deployment Integrated SurveillanceSystems, (RDISS), during the next three months.
As a result of improved utilization, operating leverage, and the new RDISScontract, Exponent now expects growth in revenues before reimbursements to bein the mid-teens for 2007. In addition, the Company expects an improvement inoperating income as a percentage of revenues before reimbursements ofapproximately 250 basis points for the full year.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conferencecall today, October 17, 2007, starting at 4:30 p.m. Eastern Daylight Time/1:30p.m. Pacific Daylight Time. The audio on the conference call is available bydialing 800-366-3908. A live webcast of the call will be available on theInvestor Relations section of the Company's web site athttp://www.exponent.com/investors. For those unable to listen to the livewebcast, a replay of the call will also be available on the Exponent web site,or by dialing 800-405-2236 and entering reservation #11098780.
Exponent is an engineering and scientific consulting firm providingsolutions to complex problems. Exponent's multidisciplinary organization ofscientists, physicians, engineers, and business consultants brings togethermore than 90 technical disciplines to address complicated issues facingindustry and government today. The firm is best known for analyzing accidentsand failures to