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CACI International Inc. (CACI - Analyst Report) reported pro forma net income of $40.9 million or $1.45 per diluted share in its third quarter financial results of fiscal 2012, compared to $34.7 million or $1.11 per diluted share in the previous year period. This beat the Zacks Consensus Estimate of $1.42 per share.

Revenues

Pro forma revenues came in at $928 million, up 1.6% year over year but down 4.6% sequentially, substantially missing the Zacks Consensus Estimate of $1,004 million. Contract funding orders in the quarter came in at $800 million, increasing 6.8% year over year and 32.2% sequentially.

As of March 31, 2012, total funded backlog was $2.04 billion, rising 4.7% year over year but falling 6.9% sequentially. Total backlog amounted to $7.65 billion at the end of the quarter, rising 10.3% annually.

In terms of a customer mix, the Department of Defense accounted for about 77.5% of total revenue. Federal Civilian Agencies contributed about 17.2% of total revenue. Commercial customers accounted for 5.0% of total revenue and State and Local Governments added 0.3% to total revenue.

Margins

Pro forma operating margin came in at 7.8%, up from 6.8% in the year-ago quarter, primarily stemming from the 23.3% annual rise in operating income evolving from direct labor boost.

Balance Sheet and Cash Flows

The company ended the quarter with cash and cash equivalents of $48.9 million, up from $24 million at the end of the previous quarter. Net long-term debt amounted to approximately $565.8 million, down from $590 million at the end of the previous quarter.

Net cash provided by operating activities during the first nine months of fiscal 2012 fell to $144.8 million from $145.7 million during the first nine months of fiscal 2011. During this time, cash used for capital expenditures was $12.8 million rising from $9.2 million during the first nine months of fiscal 2011. Cash used for share repurchases amounted to $209.7 million during the first nine months of fiscal 2012.

Outlook

The strong results attained by CACI International induced management to raise its 2012 guidance on the whole. The company now expects net income between $163 million and $169 million, up from the previous estimate of $162 million - $168 million.

However, revenues are now projected at $3,730 million - $3,830 million, falling from the previous range of $3,850 million - $4,050 million for the full fiscal year. Effective tax rate is now expected to be at 39.3% from 39.8% expected earlier. Diluted earnings per share are projected to fall between $5.74 and $5.95, up from the previous guidance range of $5.72 and $5.94.

At present we have a Neutral recommendation on CACI International. The stock currently carries a Zacks #4 Rank, which translates into a short-term rating of Sell.

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