Intelligence helps Titan's Q1

Defense and homeland security contractor Titan reported a 23 percent surge in first-quarter revenue, citing growth in intelligence-related projects.

According to the company’s earnings report released today, the company posted first-quarter revenue of $559 million compared with $454 million a year ago. Gene Ray, Titan's chairman, president and chief executive officer, said the company's revenue increase was entirely organic. Net income from continuing operations was $18.2 million, or 21 cents per diluted share, compared with results of $3.6 million a year earlier, or 4 cents per diluted share. On average, analysts covering Titan expected the company to report earnings of 22 cents per share, according to Zacks Investment Research.

Investors reacted mildly to the earnings news. Shares of Titan were at $17.77 in afternoon trading, up more than 2 percent from the previous day's closing price.

The company experienced growth in all of its business segments, but company officials emphasized the expansion of its intelligence business within the Command, Control, Communications, Intelligence, Surveillance, and Reconnaissance (C4ISR) line of business. "Our intelligence business has been growing rapidly," Ray said.

Titan officials expect intelligence projects to generate more than $500 million for the company in 2005. Last year, intelligence represented more than 20 percent of Titan’s $2.05 billion revenue total.

As for future growth prospects, Ray cited the newly created post of national intelligence director, the higher profile of the Homeland Security Department in the intelligence community, the FBI's growing intelligence budget and a general trend toward outsourcing among government agencies.

"We have begun a major new effort to capture intelligence procurements within the FBI," he said.

Overall, Titan officials expect as many as 14 requests for proposals to land during the next two months, Ray said.

In other news, Titan officials said they completed the acquisition of Intelligence Data Systems, which focuses on intelligence agencies.

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