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Tony Smeraglinolo: Engility Beats 4Q Guidance, Looks to Leverage IDIQs, Core Competencies

Tony Smeraglinolo
Tony Smeraglinolo

Engility Corp. (NYSE: EGL) reported Tuesday that it exceeded its top-line and bottom-line guidance for the fourth quarter of its 2012 fiscal year, generating $396 million in revenue and earning 77 cents per adjusted diluted share over the period.

The Chantilly, Va.-based services provider also reported better-than-projected results for the 2012 fiscal year as a whole, with $1.66 billion of revenue and profits of $4.06 per adjusted diluted share for the year.

In the contractor’s earnings call, president and CEO Tony Smeraglinolo said the company has won prime positions on six indefinite-delivery/indefinite-quantity contract vehicles potentially worth a combined $11 billion since going public in July.

Engility won positions on four of those IDIQs in the last quarter of its fiscal year.

“Each of those IDIQs positions us well for our higher end work and 75 percent of our portfolio is in the higher end activities, ” Tony Smeraglinolo, president and CEO, told GovCon Wire.

“This puts a finer point on it and gives us more growth opportunities, ” he added.

  • Two IDIQs are with the U.S. Navy‘s Space and Naval Warfare Systems Center for work in the C4ISR and C5ISR domains, potentially worth $780 million and $900 million, respectively.
  • Engility also holds a spot on a potential $350 million IDIQ with the U.S. Agency for International Development, aimed at improving access to clean energy and improve governance in sector.
  • Under a potential $495 million contract, Engility will compete for work in engineering, technical support, business analysis and information technology for the joint program executive office for chemical and biological defense.

Smeraglinolo emphasized to GovCon Wire that the company founded and continues to hone its business around its core service competencies.

That includes a driving focus on thriving in a low-cost technically-acceptable contracting environment, he said.

He said the company has an advantage in the government space as its “fresh start” after spinning off from L-3 Communications (NYSE: LLL) and eliminating organizational conflicts of interests has allowed it to focus on efficiencies and price-disruptive service offerings.Engility black

Smeraglinolo also said the company could look the mergers and acquisitions market to boost its competitiveness in industries where established relationships are key to aligning with customers.

He cited energy and intelligence as examples of those kinds of industries.

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