CACI rides acquisitions, security higher

CACI International officials reported strong revenue and earnings growth today, which they attributed to the integrator’s national security focus and recent acquisitions.

CACI posted revenue of $414.9 million for its fiscal third quarter ending March 31, an increase of 44 percent compared with figures from the same quarter last year. Net income for the quarter rose to $21.6 million, an increase of 37 percent compared with last year. CACI reported diluted earnings per share of $0.71 compared with $0.53 last year.

The company’s growth, in part, was propelled through acquisitions such as last year’s purchase of American Management Systems’ defense and intelligence group. CACI officials reported organic revenue growth of 14.7 percent during the quarter. They cited the company’s focus on national security and intelligence as a factor behind the organic revenue expansion.

The acquisition of the AMS group also boosted CACI’s operating margin. Company officials said the successful integration of that group into CACI resulted in operational efficiencies that fueled the margin increase. Specifically, the operating margin for the third quarter increased to 9.2 percent from 8.7 percent a year earlier.

“The economies of scale came through along the lines we had hoped for and planned for,” noted J.P. “Jack” London, CACI’s chairman, president and chief executive officer.

CACI officials are looking for additional acquisitions. Among vendors that work for the Defense Department, they are targeting companies that focus on warfighter support rather than back-office systems, London said. Companies that specialize in intelligence at the national level, particularly those based in the Washington, D.C., area, are another target.

London also expressed interested in companies that have technical support contracts with those organizations to build systems, networks, database and reporting systems. Companies involved in Homeland Security Department work represent another area of interest, he added.

CACI officials are also boosting their hiring effort. London said the company is aggressively recruiting in the IT and network services areas. The company is especially interested in people who combine technical skills with security clearances, he noted.


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