Titan Corp. Reports Year-End Loss of $98.6 Million
BY BRAD GRAVES
The Titan Corp. had $1.13 billion in sales during 2001, with more than $900 million of that coming from its core business of selling information technology to the U.S. government.
Yet operations such as SureBeam Corp. contributed to a $98.6 million loss for the year. SureBeam, which is 84 percent owned by Titan, irradiates food with electron beam technology.
San Diego-based Titan released fourth-quarter and year-end results last week.
Its 2001 revenues of $1.13 billion compared to $1.01 billion in 2000.
Revenues were $331.9 million in the fourth quarter ended Dec. 31. That compares to revenues of $274.9 million in the year-ago period.
The net loss for 2001 was $98.6 million, or $1.76 per diluted share, compared to a net loss of $18.7 million, or 44 cents per diluted share, in 2000.
Titan said the $98.6 million net loss in 2001 included a $14.2 million “loss from continuing operations before extraordinary loss,” and an $84.4 million “loss from discontinued operations, net of tax benefit.” A statement from the company said Titan was treating SureBeam as a discontinued operation.
Titan conducted the initial public offering of SureBeam on March 16. Titan continues to own 84 percent of SureBeam and plans to spin that off to shareholders in a tax-free distribution.
Titan and SureBeam made headlines during the October anthrax scare, when the U.S. Postal Service announced it would buy the companies’ equipment to irradiate contaminated mail.
Titan has used the electron beam devices to sterilize medical instruments. SureBeam has used them to sterilize food like hamburger, and to kill pests in tropical fruit.
Titan said net income in the fourth quarter was $7.9 million or 12 cents per diluted share.
That compares with net income of $3.3 million or 4 cents per diluted share in the year-ago period.
All of the above numbers were reported in accordance with generally accepted accounting principles. Titan also reported a set of pro forma numbers excluding certain, one-time charges.
Demand from the Air Force, Army and intelligence agencies spurred fourth quarter revenues, Titan said. Titan also supported multiple agencies providing security for the Olympics in Salt Lake City, and conducted other anti-terrorism and emergency planning work.
Titan acquired two companies in the fall ,Datron in September and BTG in November.