NSS net sales for the 2013 second quarter
decreased by $4 million
, or 1%, compared to the 2012 second quarter.
Sales decreased by $12 million
primarily due to lower demand for a
technical support contract for a U.S. Government
agency due to
sequestration funding reductions and less demand for U.S. Special
Operations Command (USSOCOM) IT support services, as our previous
single-award contract converted to several multiple-award contracts,
which reduced our workshare. These decreases were partially offset
primarily by $8 million
of higher sales due to increased demand for
intelligence and IT support services for the U.S. Government
agencies on existing contracts.
NSS operating income for the 2013 second quarter of $20 million
decreased by $3 million
, or 14%, compared to the 2012 second quarter.
Operating margin decreased by 80 basis points to 5.9%. Operating margin
decreased by 110 basis points primarily due to lower margin sales mix
and 40 basis points primarily due to the timing of award fees. These
decreases were partially offset by 70 basis points due to more favorable
contract adjustments compared to the 2012 second quarter.
NSS net sales for the 2013 first half decreased by
, or 3%, compared to the 2012 first half primarily due to
less demand for USSOCOM IT support services as a result of a trend
similar to the 2013 second quarter.
NSS operating income for the 2013 first half of $40 million
included severance charges of $1 million
, decreased by $2 million
4%, compared to the 2012 first half. Operating margin was 6.1%. More
favorable contract adjustments in the 2013 first half compared to the
2012 first half were offset by lower margin sales mix.