After being plagued with troubles since May of last year, Lanham-based Integral Systems is closing 2007 with record earnings, a new management structure and a fresh plan for expansion.
Integral Systems builds the infrastructure used to control satellites from Earth, for both government and commercial customers.
The company was plagued with problems in 2006, when a disagreement arose among shareholders over whether to pursue a sale of the company.
Complicating matters, CEO Steven Chamberlain pleaded guilty to a fourth-degree sex offense involving a minor in May 2006 and resigned from his position.
The SEC also launched an investigation related to a former
manager.
Company veteran Pete Gaffney took over for Chamberlain and pursued the sale of the company into 2007.
The company reshuffled management again this summer; Gaffney now has a new role as an executive vice president focusing on new business and technology.
Alan Baldwin, a company director, became CEO to refocus thecompany on its businesses rather than on a sale.
Despite the company’s high revenue, Gaffney told The Examiner last week, Integral did not receive offers attractive enough to warrant the sale.
“I think going on the record saying we were no longer for sale was a turning point, both internally for the company and externally,” Baldwin said.
The “on-again, off-again effort to sell the company,” had taken a toll on morale, said Richard Ryan, an analyst following Integral for Feltl & Co. “Management is [now] paying attention to issues that will create internal stability,” Ryan wrote in his most recent note to investors in October.
Since changing management, the company has won some key contracts, including a $29.8 million deal to work on the Air Force’s Rapid Attack Identification Detection Reporting System program.
It also will compete on the Northrop Grumman team for the Air Force’s next major GPS contract.
Integral finished the year with $36.3 million in revenue, up 31 percent from 2006, and a 62 percent increase in profit.
An acquisition is part of the company’s hopes for 2008, Gaffney told The Examiner. Integral also plans to concentrate on work in the classified arena and may pursue building technology to control Unmanned Aerial Vehicles, he added.
