NCI Postpones Fourth Quarter and Full Fiscal Year 2012 Earnings Release and Conference Call

  NCI Postpones Fourth Quarter and Full Fiscal Year 2012 Earnings Release and
  Conference Call

  *Company expects to report non-cash goodwill impairment charge in the
    fourth quarter of 2012
  *NCI anticipates fiscal year 2012 revenue and adjusted diluted EPS will
    meet or exceed ranges of previously issued guidance

Business Wire

RESTON, Va. -- February 13, 2013

NCI, Inc. (NASDAQ: NCIT), a leading provider of information technology (IT),
engineering, logistics, and professional services and solutions to U.S.
Federal Government agencies, today announced that it has postponed release of
its financial results for the fourth quarter and full year 2012 and its
conference call to discuss these results originally scheduled for today at
5:00 p.m. ET. The postponement will allow the company and its independent
auditors to complete their work on the financial statements and audit.

The company expects to report additional goodwill impairment, which would
represent a non-cash, after-tax accounting charge to the company’s financial
statements and will not affect adjusted diluted earnings per share (EPS), cash
flows, liquidity, or future operating activities. Excluding the anticipated
accounting charge and certain other unusual, infrequent, or non-recurring
items, NCI anticipates that full year 2012 revenue and adjusted diluted EPS
will meet or exceed previously issued revenue and EPS guidance ranges of $364
million to $370 million and $0.46–$0.48, respectively.

At September 30, 2012, the company had remaining goodwill totaling $57.5
million. U.S. generally accepted accounting principles require companies to
perform an annual test for goodwill impairment. As part of the goodwill
impairment analysis initiated in the third quarter of 2012, resulting in a
non-cash, after-tax charge of $55.6 million, the company and its auditors
determined that additional goodwill impairment was appropriate to be
measured—and recorded—in the fourth quarter 2012. The completion of this
analysis will determine the final amount of the impairment to be recognized.

Due to the delay, NCI will announce and schedule a conference call when the
financial results for the fourth quarter and full fiscal year 2012 are
finalized.

About NCI, Inc.:

NCI is a leading provider of information technology (IT) and professional
services and solutions to U.S. Federal Government agencies. Our award-winning
expertise encompasses areas critical to our customers’ mission objectives,
including enterprise systems management; network engineering; cybersecurity
and information assurance; software development and systems engineering;
program management, acquisition, and lifecycle support; engineering and
logistics; health IT and informatics; and training and simulation.
Headquartered in Reston, VA, NCI has approximately 2,300 employees at nearly
100 locations worldwide. For more information, visit our website at
www.nciinc.com or email investor@nciinc.com.

Forward-Looking Statement: Statements and assumptions made in this news
release that do not address historical facts constitute “forward-looking”
statements that NCI believes to be within the definition in the Private
Securities Litigation Reform Act of 1995 and involve risks and uncertainties,
many of which are outside of our control. Words such as “may,” “will,”
“intends,” “should,” “expects,” “plans,” “projects,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential,” “continue,” “opportunity,”
or the negative of these terms or words of similar import are intended to
identify forward-looking statements.

Such statements are subject to factors that could cause actual results to
differ materially from anticipated results. The factors that could cause
actual results to differ materially from those anticipated include, but are
not limited to, the following: our dependence on our contracts with Federal
Government agencies, particularly within the U.S. Department of Defense, for
substantially all of our revenue; a reduction in the overall U.S. Defense
budget; volatility in spending authorizations for Defense- and
Intelligence-related programs by the Federal Government or a shift in spending
to programs in areas in which we do not currently provide services; Federal
Government shutdowns (such as that which occurred during the Federal
Government’s 1996 fiscal year); other potential delays in the Federal
Government appropriations process or budgetary cuts resulting from
congressional committee recommendations or automatic sequestration under the
Budget Control Act of 2011; risk of contract performance or termination;
failure to achieve contract awards in connection with recompetes for present
business and/or competition for new business; adverse results of Federal
Government audits of our Government contracts; Government contract procurement
risks (such as bid protests, small business set asides, etc.) and termination
risks; competitive factors, such as pricing pressures and competition to hire
and retain employees (particularly those with security clearances); Federal
Government agencies awarding contracts on a technically acceptable/lowest
price basis in order to reduce expenditures; failure to successfully identify
and integrate future acquired companies or businesses into our operations, to
realize any accretive or synergistic effects from such acquisitions, or to
effectively integrate acquisitions appropriate to the achievement of our
strategic plans; general economic conditions in the United States, including
conditions that result from terrorist activities or war; and material changes
in laws or regulations applicable to our businesses, particularly legislation
affecting (i) Government contracts for services, (ii) outsourcing of
activities that have been performed by the Government, (iii) Government
contracts containing organizational conflict of interest (OCI) clauses, (iv)
delays related to agency-specific funding freezes, (v) competition for task
orders under Government-Wide Acquisition Contracts (GWACs), agency-specific
Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, and/or schedule
contracts with the General Services Administration, and (vi) our own ability
to achieve the objectives of near-term or long-range business plans, including
internal systems failures. These and other risk factors are more fully
discussed in the section titled “Risks Factors” in NCI's Annual Report on Form
10-K filed with the Securities and Exchange Commission (SEC) and, from time to
time, in other filings with the SEC, such as our Current Reports on Form 8-K
and Quarterly Reports on Form 10-Q.

Any projections of revenue, margins, expenses, earnings, tax provisions, cash
flows, benefit obligations, and share repurchases; any statements of the
plans, strategies, and objectives of management for future operations; and the
execution of cost-reduction programs, restructuring, and integration plans are
also subject to factors that could cause actual results to differ materially
from anticipated results.

The forward-looking statements included in this news release are only made as
of the date of this news release, and NCI undertakes no obligation to publicly
update any of the forward-looking statements made herein, whether as a result
of new information, subsequent events or circumstances, changes in
expectations, or otherwise.

Contact:

NCI, Inc.
Brian J. Clark, President
703-707-6751
 
Press spacebar to pause and continue. Press esc to stop.