Information technology services provider CACI International Inc.CACI recently secured a $102 million contract from the Securities and Exchange Commission (SEC). The single-award indefinite delivery/indefinite quantity (ID/IQ) contract has a base period of five years.
The contract entails CACI to assist the SEC's Division of Enforcement and provide back-end support for computer forensics and electronic processing work. The multi-million dollar deal represents continued work for CACI's Investigation and Litigation Support market area and reinforces its position as one of the leading players in the segment.
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 #3 (Hold). Some other better-ranked stocks in the industry include Lionbridge Technologies Inc LIOX , NCI, Inc. NCIT and Ebix Inc. EBIX , 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 >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.