SRA International profit misses Wall Street view

FAIRFAX, Va. - Consultant SRA International Inc. on Thursday reported a lower-than-expected fiscal second-quarter profit, because of a downturn in its business of helping pharmaceutical companies manage clinical trials and deal with government regulators.

The company also lowered its earnings and revenue forecast for the fiscal year ending in June because of the quarterly results.

Net income in the quarter ended Dec. 31 totaled $10.8 million, or 19 cents per share, compared with $18 million, or 30 cents per share, a year earlier. Revenue slipped 3 percent to $369.3 million from $382.0 million.

Analysts surveyed by Thomson Reuters expected the company to earn 26 cents per share on slightly higher sales of $384 million.

The company said a downturn in its global clinical development business helping pharmaceutical and biotechnology companies accounted for a miss of about 4 cents per share from an internal forecast. Chief Executive Stan Sloane said he was disappointed in the quarterly results but said the company has taken steps to improve.

SRA said January contract awards improved in its government information-technology and professional-services business, and that's where it plans to focus growth.

Also, the company said Controller Melissa Burgum was named acting chief financial officer. CFO Steve Hughes is retiring and the company is searching for a permanent replacement.

Shares of SRA rose 54 cents, or 3.3 percent, to close earlier at $16.73.

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