Revenue during the quarter dropped 8.24 percent to $68.93 million from $75.12 million in the previous year period. Gross margin for the quarter expanded 161 basis points over the previous year period to 30.08 percent. Operating margin for the quarter stood at negative 0.78 percent as compared to a positive 4.90 percent for the previous year period.

Operating loss for the quarter was $0.54 million, compared with an operating income of $3.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $5.19 million compared with $8.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 345 basis points in the quarter to 7.53 percent from 10.97 percent in the last year period.

"In 2016, we set out to build a solid foundation for growth in 2017 and beyond. The pivot strategy we laid out in our 2015 year-end call last February and our Analyst Day in April called for divesting our commercial cyber solutions and SETA businesses, as well as the transformation of our business development (BD) function and other key operational changes," said Bill Weber, KeyW's president and chief executive officer. "I said that by the end of 2016, KeyW would be a different company than it was at the time. Importantly, we have achieved that fundamental transformation. We entered 2017 as a streamlined, much stronger, and healthier end-to-end, pure-play solutions provider serving primarily the Intelligence community (IC). We showed impressive growth across several of our business sectors, including cyber operations, affordable Intelligence, Surveillance and Reconnaissance (ISR), advanced cyber training and analytics.

For fiscal year 2017, The KeyW Holding Corporation expects revenue to be in the range of $300 million to $320 million. It forecasts net income to grow in the range of $0.40 percent to $2 percent for the same period.

The company has spent $4.69 million cash to meet investing activities during the year as against cash outgo of $34.73 million in the last year.

Cash flow from financing activities was $2.24 million for the year, down 45.45 percent or $1.86 million, when compared with the last year.

Cash and cash equivalents stood at $41.87 million as on Dec. 31, 2016, up 97.25 percent or $20.64 million from $21.23 million on Dec. 31, 2015.

Working capital increases
The KeyW Holding Corporation has recorded an increase in the working capital over the last year. It stood at $66.77 million as at Dec. 31, 2016, up 6.06 percent or $3.82 million from $62.95 million on Dec. 31, 2015. Current ratio was at 2.75 as on Dec. 31, 2016, up from 2.72 on Dec. 31, 2015.

Debt moves up marginally
The KeyW Holding Corporation has witnessed an increase in total debt over the last one year. It stood at $132.48 million as on Dec. 31, 2016, up 4.99 percent or $6.29 million from $126.19 million on Dec. 31, 2015. Total debt was 29.74 percent of total assets as on Dec. 31, 2016, compared with 27.83 percent on Dec. 31, 2015. Debt to equity ratio was at 0.57 as on Dec. 31, 2016, up from 0.50 as on Dec. 31, 2015.