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CACI Secures US Navy Modernization Deal, Boosts Revenues
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Information technology services provider CACI International Inc. (CACI - Free Report) recently secured a $60.7 million contract to modernize the legacy systems of the U.S. Navy. The contract expands the scope of work for the company’s Business Systems market area and reinforces its position as one of the leading players in the segment.
Per the contract, CACI will provide development and engineering support services for business IT systems that manage supply, finance, personnel, and administrative functions of the U.S. Navy’s Space and Naval Warfare Systems Center Atlantic. In particular, the company will facilitate the agencies to effectively manage the supply chain mechanism of the U.S. Navy by modernizing the software, hardware and related technology, while lowering cyber security vulnerabilities.
CACI has a large pipeline of new projects and regularly wins more deals, catalyzing the company’s growth story. CACI intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building new ones.
A leader in IT outsourcing for the U.S. federal government, CACI earns its revenues through four customer groups – the Department of Defense, Federal Civilian Agencies, Commercial and Other, and State and Local Governments. The Department of Defense’s customers include the U.S. Army (CACI’s largest customer) and the U.S. Navy. Federal civilian agencies provide litigation support services to the Department of Justice.
Having the government as one of the biggest clients lends stability to the business and moderates fluctuations in revenues. Although, the government generally has a lengthy approval process, the project continues earning money years after it has been approved. Moreover, government contracts improve the visibility of future revenue streams.
CACI’s system integration skills and intelligence expertise consume a significant portion of the funds earmarked for the Department of Homeland Security, while creating systems that foster the sharing of critical information among all intelligence agencies. We believe the company is comfortably positioned, given its favored relationship with the Department of Defense.
Last month, CACI offered a bullish guidance for fiscal 2017 beginning Jul 1, 2016 by factoring a large backlog of business, a healthy pipeline of opportunities, and enhanced capabilities to better serve its clients. The company also reiterated its guidance for the ongoing fiscal.
Going forward, CACI intends to assiduously grow in large markets, increase new business initiatives and leverage mergers and acquisitions to further increase its market share and create long-term value for its shareholders.
CACI currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include ARI Network Services Inc. (ARIS - Free Report) , The KEYW Holding Corporation and PDF Solutions Inc. (PDFS - Free Report) , each carrying a Zacks Rank #2 (Buy).
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CACI Secures US Navy Modernization Deal, Boosts Revenues
Information technology services provider CACI International Inc. (CACI - Free Report) recently secured a $60.7 million contract to modernize the legacy systems of the U.S. Navy. The contract expands the scope of work for the company’s Business Systems market area and reinforces its position as one of the leading players in the segment.
Per the contract, CACI will provide development and engineering support services for business IT systems that manage supply, finance, personnel, and administrative functions of the U.S. Navy’s Space and Naval Warfare Systems Center Atlantic. In particular, the company will facilitate the agencies to effectively manage the supply chain mechanism of the U.S. Navy by modernizing the software, hardware and related technology, while lowering cyber security vulnerabilities.
CACI has a large pipeline of new projects and regularly wins more deals, catalyzing the company’s growth story. CACI intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building new ones.
A leader in IT outsourcing for the U.S. federal government, CACI earns its revenues through four customer groups – the Department of Defense, Federal Civilian Agencies, Commercial and Other, and State and Local Governments. The Department of Defense’s customers include the U.S. Army (CACI’s largest customer) and the U.S. Navy. Federal civilian agencies provide litigation support services to the Department of Justice.
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Having the government as one of the biggest clients lends stability to the business and moderates fluctuations in revenues. Although, the government generally has a lengthy approval process, the project continues earning money years after it has been approved. Moreover, government contracts improve the visibility of future revenue streams.
CACI’s system integration skills and intelligence expertise consume a significant portion of the funds earmarked for the Department of Homeland Security, while creating systems that foster the sharing of critical information among all intelligence agencies. We believe the company is comfortably positioned, given its favored relationship with the Department of Defense.
Last month, CACI offered a bullish guidance for fiscal 2017 beginning Jul 1, 2016 by factoring a large backlog of business, a healthy pipeline of opportunities, and enhanced capabilities to better serve its clients. The company also reiterated its guidance for the ongoing fiscal.
Going forward, CACI intends to assiduously grow in large markets, increase new business initiatives and leverage mergers and acquisitions to further increase its market share and create long-term value for its shareholders.
CACI currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include ARI Network Services Inc. (ARIS - Free Report) , The KEYW Holding Corporation and PDF Solutions Inc. (PDFS - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>