Daily NewsView All News
The federal sequestration will have only a “measured” impact on the business of DLH Holdings Corp. (NASD: DLHC), according to a statement released yesterday by Zach Parker, CEO of the Atlanta-based provider of healthcare and logistics staffing to the federal government.
“Fortunately, as we have been anticipating this government budget evolution, presently, we see only ‘measured’ impacts to our business throughout fiscal year 2013 due to the impact of sequestration. While many others in the industry are re-forecasting to indicate modest reductions in revenue year-over-year, we believe that is not the case for DLH.”
The Department of Veterans Affairs funds the largest number of DLH’s current contracts, and it is exempt from sequestration funding reductions, he said.
Parker also said: “However, despite the limited impact that we expect sequestration will have on our current revenue, the pace at which we will be able to execute our long-term strategy to leverage our core competencies within the [Department of Defense] will have to be adjusted. This is also impacted by the lingering uncertainty as to how the government will address the March 27, 2013, expiration of the continuing resolution through which it has been funded since October 2012. We will continue to closely track the near-term actions by the house and senate as well as the prioritizations of the Defense Department for potential impact, and we will provide updates during our quarterly reporting and any ad hoc communications as appropriate.”