QinetiQ Reports Gains, Possible Sequestration Effects on U.S. Results

British contractor QinetiQ Group announced financial results for the first half of its current fiscal year, reporting stronger than expected results.

The company said it sold higher levels of spares during the first half and that its global products unit delivered the majority of two orders for the Q-NetTM vehicle survivability product earlier than planned.

QinetiQ reported those gains in the context of some uncertainty for its U.S. business, QinetiQ North America.

For the company’s U.S. operations, a large number of submitted bids remain unresolved and the company expects those to remain unresolved until lawmakers settle the issue of potential sequestration cuts.

Numbers for the U.S. market reflected uncertainties in the federal services market and ongoing delays in contract awards, the company said.

The announcement noted that “the strong performance in the first half gives the board confidence that the group should at least meet its expectations for the current year, absent any material change in customer requirements.”

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