CACI hires Kellogg for R&D
- By Michael Hardy
- Jan 24, 2005
In hopes of furthering a long-term growth strategy, CACI International has hired Lt. Gen. Joseph "Keith" Kellogg, who retired from the Army after a 32-year career, as executive vice president of research and technology systems.
Kellogg, who joined Oracle in 2003, then took a leave of absence to serve as chief operating officer of the Coalition Provisional Authority in Iraq, returned from Baghdad in March 2004.
At CACI, he will head up the business unit that provides intelligence, information technology, and logistics support for Defense Department clients in the United States, Europe, Asia, and the Middle East.
Growth of this business is crucial to CACI's strategic plans, said Dr. J.P. "Jack" London, chairman, president and chief executive officer at CACI. At Oracle, Kellogg had served as vice president of homeland security solutions.
London said he has known Kellogg for several years. "He is enthusiastic about joining our operation," London said. "He believes in what the Army is trying to do in transferring contract business out into the community."
Kellogg is respected by employees and customers alike, London said. He brings that high regard and his expertise in homeland security matters to the company.
London also hired Randall Fuerst from Titan to serve as executive vice president in charge of network services. Fuerst, who has been senior vice president of operations for Titan's enterprise services and solutions sector, has a "depth of knowledge" in the communications business, London said.
News of the appointments came as CACI reported a 48 percent increase in revenue for the second quarter of the company's fiscal 2005 compared to the same quarter a year ago. The company recorded $389.7 million in revenues for the quarter, compared to $263.4 million a year ago. Net income rose 44 percent, from $14.3 million to $20.5 million.
One sizeable chunk of the growth came from the company's acquisition of the AMS Defense and Intelligence Group last spring. The acquisition brought new business to CACI and has made the company more able to respond to demands of customers such as strategic and tactical organizations in the military intelligence community, the Army's Communications-Electronics Command, the Defense Information Systems Agency, the U.S. Navy, and other organizations within the DOD, he said.
In addition to the immediate burst of new business, the acquisition is enabling the company to pursue new contract opportunities in those areas that would have been out of reach before, he said. "We might have been able to team with somebody, but now we can go after them," he said.
The company is on track to bring in about $1.6 billion in revenue by the June 30 end of its fiscal year, about twice what it made two years ago, he noted. The company has maintained an 18 percent growth rate in the past 12 months, with a goal of 20 percent growth per year, London said.
"I'd like to think we're really on the verge" of breaking into top ranks of systems integrators, he said. "We truly are not more than a couple of years away from being a bona fide tier one operator with no exceptions"
Some investors weren't happy with the company's quarterly results, though, with at least one analyst citing concerns about a slowdown in revenue growth and a year-over-year decline in new contracts. By mid-afternoon today, CACI's stock price had fallen more than 12 percent to $52.94, down $7.46 from the previous day's close.