LCC International Inc. / LCCI

About LCC International Inc.

7900 Westpark Dr., Suite A315, McLean, Va. 22102
www.lcc.com | 703-873-2000 | Founded: 1983

Industry: Telecommunications | Category: Public Companies

It has not been an easy year for LCC International Inc.
LCC's chief executive resigned "for personal reasons" in April 2005; the company cut 48 jobs in a restructuring in May; Nasdaq threatened to delist it in August; it restated earnings in November; it corrected a string of clerical errors in its SEC documents in December. And in April of this year, chief financial officer C.R. Waldron announced that he will resign, effective June 16.
On the bright side, after losing money for three straight quarters, the company reported a profit in the third quarter of 2005, and company executives have said that the rollout of new services by cellphone companies positions LCC for growth.
The company's biggest hurdle last year was restating its earnings for the third and fourth quarters of 2004, as well as for the first quarter of 2005. It did so because it miscalculated revenue earned from fixed-price contracts with a U.S. customer.
The restatement caused LCC's profit to drop by about $600,000 in the third quarter of 2004 and its net loss to widen by $1 million in the first quarter of 2005. Moreover, the company filed its 2005 second- and third-quarter earnings reports late.
As a result, Nasdaq put the company's stock on a watch list for possible delisting but removed it after LCC completed the earnings restatement and submitted its required SEC filings.
Roughly 56 percent of the company's revenue stems from its operations in Europe, the Middle East and Africa — with customers in Saudi Arabia and Algeria each representing about 16 percent of total revenue. The rest comes from serving wireless companies in North and South America.
Dean J. Douglas, who joined LCC as chief executive in October, said mergers among U.S. cellphone companies were expanding the company's business, as was the rollout of 3G, or third-generation, wireless services such e-mail, music downloads and video.
"We haven't seen a negative impact to our business because of the consolidation. In fact, we have seen the exact opposite, and we would expect that that would continue," he said, alluding to business stemming from the merger of Sprint Corp. and Nextel Communications Inc. and Cingular Wireless LLC's purchase of AT&T Wireless Services Inc.
"There is an extraordinary amount of work on everybody's plate there at Cingular and at Sprint Nextel," he added, saying the company's experience with 3G networks in Europe would help it serve U.S. customers. "I am really optimistic about the company."
The company does not expect to do much hiring in the Washington region but may add jobs in the field.

President and CEO: Dean J. Douglas

2005 Financial Data

Revenues: $193,973,000 | Net Income: $-12,527,000
Asssets: $118,953,000 | Earnings Per Share: $-0.51
Total employees: 977 | Local employees: 116