U.S. Markets closed

CACI to Support Army's Intelligence Dissemination System

Zacks Equity Research

Information technology services provider CACI International Inc. CACI recently secured an $81 million contract from the U.S. Army. The three-year contract serves as a repeat order for the company’s Intelligence Systems and Support market area and reinforces its position as one of the leading players in the segment.

The contract entails CACI to provide technical support to the TROJAN SPIRIT Program, which serves as the intelligence dissemination system of the Army. Through this program, secure information connectivity is provided to tactical commanders on the battlefield to enable real-time manoeuvring of troops and secure voice and intelligence data. CACI’s proven expertise will help the Army to integrate, train and offer logistics services to deploy and maintain the TROJAN SPIRIT terminals across the globe.

CACI has a large pipeline of new projects and continues to win more deals at regular intervals. These back-to-back contract wins are key catalysts driving success perennially for the company. Moving forward, CACI intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building newer ones.

A leader in IT outsourcing for the U.S. federal government, CACI earns its revenues through four customer groups: Department of Defense (DoD), Federal Civilian Agencies, Commercial and Other, and State and Local Governments. DoD customers include the U.S. Army (CACI’s largest customer) and the U.S. Navy. Federal civilian agencies furnish litigation support services to the Department of Justice (DoJ).

Having the government as one of the biggest clients lends stability to the business and moderates fluctuations in revenue. Although the government generally has a lengthy approval process, the project earns money for a number of years after it is approved. Moreover, government contracts improve the visibility of future revenue streams.

In addition, CACI has ample exposure to the rapidly growing DoD and Department of Homeland Security budgets. 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 favoured relationship with the DoD. Moreover, cyber attacks are creating increased awareness, leading to more demand for cyber solutions.

CACI currently has a Zacks Rank #2 (Buy). Some other better-ranked stocks in the industry worth reckoning include CSG Systems International Inc. CSGS, The KEYW Holding Corporation KEYW and Epiq Systems, Inc. EPIQ, each carrying the same Zacks Rank as CACI.

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 >>


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
 
KEYW HOLDING CP (KEYW): Free Stock Analysis Report
 
CSG SYS INTL (CSGS): Free Stock Analysis Report
 
CACI INTL A (CACI): Free Stock Analysis Report
 
EPIQ SYS INC (EPIQ): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research