KeyW reports improved sales, increased losses in 2018

March 12, 2019 at 10:33 AM

KeyW today reported sales in its most recent quarter reached $126.3 million, roughly flat from the same three-month period a year earlier.

The contractor reported a quarterly loss of $5.5 million, after recording $15.6 million in quarterly profit the prior year.

KeyW said its sales in 2018 totaled $506.8 million, up about 15 percent from 2017. The company reported a loss for the year of $22.3 million, more than the $13.4 million lost in 2017.

KeyW said its revenue growth was primarily attributable to business acquired through its purchase of Sotera Defense Solutions. The increased net loss was “attributable to a non-cash tax benefit recognized in the prior year associated with the revaluation of deferred tax assets and liabilities from the enactment of the Tax Cuts and Jobs Act as well as other one-time non-cash expenses recognized in the current year.”

In a call with analysts this morning, Bill Weber, KeyW's chief executive, said the company has exited its flight services work.

As a result, it will be able to “emphasize our core mission,” he said.