SAN DIEGO—Network design and engineering firm Wireless Facilities Inc. announced it signed a $10 million contract with a government contractor to develop software and provide integration services for the Global Combat Support System, which supplies military commanders with access to data about personnel and equipment during all stages of the mobilization process.
The company said its four-year contract strengthens its ability to build up its government division, which typically includes longer-term contracts that add stability and predictability to the company’s business model. WFI also pointed out that its government division has supported the GCSS Project Management Office since 2000 and has successfully transitioned several new capabilities into GCSS.
“This important software development contract will allow us to continue to improve the ability of combatant commanders, their components and JTF commanders to provide mission critical logistics support to the warfighter,” said Robin Mickle, president of WFI Government Services. “It also provides an opportunity to assist the [Department of Defense] in its movement towards Net-Centric Enterprise Services and Services Oriented Architecture .”
WFI Government Services specializes in technical resources consulting, logistics and RFID technology solutions, homeland-security and public-safety applications and integrated network services.
Recently, the company has hit financial hard times as its Latin American business dried up. In March, WFI reported a net loss of $3.4 million for the fourth quarter of 2005, a reversal from its net income of $12.3 million during the same quarter of 2004. The company also stated that it planned to revise its second- and third-quarter 2005 results to reflect the accounting impact of cancellation of sites by a customer in Mexico. The total impact was expected to be a reduction of $4.8 million in revenues and $1.3 million in net income for both quarters and was to be reflected in amendments filed with the company’s annual report.
At the time, WFI noted that it was focusing on building its federal government wireless business, which it said accounts for nearly 25 percent of its business. During the fourth quarter, WFI announced a contract with the U.S. Navy, several municipal Wi-Fi contracts and a wireless carrier contract for its diagnostics services.
The contract news pushed WFI’s stock up 18 cents to $3.91 per share during morning trading.
