CACI downgrades forecasts

CACI International has slightly reduced its projected revenue forecasts for its second fiscal quarter, which ends at the end of the calendar year, and its current year, fiscal 2006, which ends June 30.

Stephen Waechter, CACI’s chief financial officer, attributed the expected slower-growth rate to the completion of some of the company’s Defense Department work in Iraq and the anticipated ramp-down of litigation support work with the Justice Department.

The company reduced its second-quarter prediction from a range of $420 million to $430 million, to a range of $415 million to $425 million. The current projection for the full year stands at $1.75 billion to $1.825 billion, a $25 million reduction.

The adjustments came as CACI announced its first quarter results. The quarterly revenue of $423.1 million was an 8.9 percent increase over the $388.7 million that the company reported in the first quarter last year.

The company, however, amassed $800 million in contract awards in the first quarter, including $150 million in national security and intelligence work and a $107 million contract to support the Navy’s Automatic Identification Technology Program Office.

Jack London, CACI’s chairman, president and chief executive officer, said the company hit “a little bit of a slow period” for contract awards in earlier quarters. But the last 90 days has provided “good news for us,” he added. London noted that half of the $800 million in first quarter awards represented new business.

New contract awards often take six months to start generating significant revenue. Accordingly, Waechter said the recent wins will increase over the second half of the company’s fiscal year.

CACI’s first quarterly revenue growth was entirely organic, according to company. Net income for the quarter, which includes stock option expense, was $19.1 million, compared to $18.3 million in the same quarter last year.