General Sciences Corp.
Graduating from the federal government's set-aside programs for small and minority-owned companies can be bad for business, General Sciences Corp. has learned.
The Laurel-based government contractor reported sharply lower sales and earnings in its first fiscal quarter, which ended Oct. 31, because it had become too big to receive special treatment from the National Aeronautics and Space Administration, said Lily Chen, vice president.
The company, which specializes in providing weather and environmental research, said its graduation from the Small Business Administration's 8(a) program caused it to lose a data-processing contract with NASA. As a result, revenues dropped 28 percent, to $2.9 million, and earnings fell 48 percent, to $73,323, the company reported.
Dr. Chen said the company expects its income to rebound as it markets its meteorological systems worldwide.