Outsourcer Posts Record QuarterOutsourcer Posts Record Quarter

Washington has been very, very good to CACI International Inc., a major outsourcer for government IT work. The company posted record results in its second quarter, which ended Dec. 31, with revenue increasing 26% and profit from continuing operations jumping 45% from a year earlier. CACI credited the growth from increased projects for systems integration, managed network services, engineering services, and knowledge management from federal customers.

CEO J.P. London says the company's internal growth continues to be strong, fueled by a 27% increase in federal government business from a year earlier.

"Like the previous quarter, this quarter was characterized by increasing levels of demand for our services by our government customers who are key in providing and supporting our nation's defense, intelligence, and homeland security needs," London said in a statement. "The pace of activities across our operations produced strong growth, especially in our systems-integration and engineering-services area, where we're providing leading-edge C4ISR command, control, communications, computers, intelligence, surveillance, and reconnaissance support to the Department of Defense. We also provided higher levels of key logistics-management and business-improvement services to federal civilian agencies."

Second-quarter revenue reached $204.5 million, up from $162.3 million a year earlier. Income from continuing operations rose to $10.6 million, or 36 cents per diluted share, up from $7.3 million and 30 cents per share a year earlier. CACI said the increase in income from continuing operations was because of the continued expansion of the company's business base, relatively lower levels of indirect costs and selling expenses, and lower interest charges.

Highlights during the past quarter included CACI's receiving $300 million in contract awards and the acquisition of Acton Burnell Inc., expanding CACI's support to the Navy and complementing the company's presence in the Department of Veterans Affairs.