Losses at Arlington-based Homeland Security Capital Corp . widened last quarter as the firm encountered headwinds in its plan to shift its business focus to real estate services.
Homeland Security Capital said that the increased expenses of marketing its homeland security subsidiaries, compounded by unanticipated costs on several projects, widened its fiscal 2011 fourth quarter loss, before giving effect to preferred stock dividends, was $ 5.2 million, 10 cents per share. That compared with net income of $ 300,000, 1 cent per share, for the same period last year.
Revenue for the latest quarter was $ 27.2 million, up from $ 26.8 million in the year-ago period.
Losses also widened for the fiscal year. Before giving effect to preferred stock dividends, the company’s net loss was $ 4.4 million, 8 cents per share, compared with net income of $ 1.9 million, 4 cents per share in fiscal 2010.
Revenue for fiscal 2011 was $ 105.1 million compared with $ 97.9 million in fiscal 2010.
“We clearly had a disappointing fourth quarter,” said Homeland Security Capital CEO Tom McMillan. “We look forward to more positive results in the future, including growing our recent acquisitions in the real estate services industry.”
Homeland Security Capital’s retooling of its business model has included the acquisition of title insurance and escrow services firm Timios, Inc., and the creation of the Fiducia Real Estate Solutions, Inc. subsidiary.
While the firm has yet to find a buyer for its homeland security subsidiaries, it has met with better success in other realignments efforts. In July, Homeland Security Capital (OTCBB: HOMS) announced the sale of its wholly owned subsidiary, Safety and Ecology Holdings Corp. to Atlanta-based Perma-Fix Environmental Services Inc. for $ 24.5 million.
Tucker Echols covers general assignment and provides business coverage for WTOP.