Versar, Inc. Announces 1Q FY 2010 Financial Results

• Press Release
• Source: Versar, Inc.
• On 9:00 am EST, Monday November 9, 2009

SPRINGFIELD, Va.--(BUSINESS WIRE)--Versar, Inc. (NYSE Amex: VSR) today announced its financial results for its first quarter 2010, ended September 25, 2009. Gross revenue for the first quarter was $24,714,000, a 1% decrease from the gross revenue of $24,998,000 reported in the first quarter of fiscal year 2009. Net income for the first quarter of fiscal year 2010 was $237,000, or $0.03 per share compared to $525,000 or $0.06 per share in the same period last year.

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Symbol	Price	Change
VSR	3.35	-0.03

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Although gross revenue was comparable to the same period last year, the Company experienced a decrease in net income attributable to losses from a poor economic environment and one-time expenses related to renovations of our chemical agent laboratory. The Company’s first quarter numbers were also impacted by an expected decline in revenue from the International Program Management Group. The Compliance and Environmental Group was hurt by budget shortfalls in its state and municipal work, and the National Security Group’s laboratory was closed the majority of this period for renovations.

Dr. Ted Prociv, President and CEO of Versar said, “The worldwide economic downturn has put pressure on our financial performance resulting in flat year on year revenue. We have continued to make investments in new growth markets such as U.S. based construction management, telecom related construction and munitions disposal management which are beginning to show results and are expected to positively impact the remainder of the fiscal year. We expect these investments to offset the anticipated decline in our International Program Management revenue.” Dr. Prociv continued, “Although our international revenue is below last year’s level it remains an important part of our business and we were recently awarded contract extensions in the amount of $18.6 million for work in Iraq and Afghanistan that will profitably fund our program through April of 2010.”

VERSAR, INC., headquartered in Springfield, VA, is a publicly held international professional services firm supporting government and industry in national defense/homeland defense programs, environmental health and safety and infrastructure revitalization. VERSAR operates a number of web sites, including the corporate Web sites, http://www.versar.com, http://www.homelanddefense.com, and http://www.geomet.com; http://www.viap.com and http://www.dtaps.com.

This press release contains forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described herein and in Versar’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended June 26, 2009. The forward-looking statements are made as of the date hereof and Versar does not undertake to update its forward-looking statements.

Versar, Inc.
Michael J. Abram, 703-642-6706
Senior Vice President
mabram@versar.com
or
Investor Relations Contact:
Barry Kaplan Associates
Andrew J. Kaplan, 732-747-0702
smallkap@aol.com