CACI appoints former Lockheed executive as CEO
* Second management change in less than a year
* Asbury lauded for helping Lockheed win big new orders
* Company eyes $10 billion revenue target in 10 years
WASHINGTON, Feb 20 (Reuters) - CACI International Inc on Wednesday announced a second major leadership shift in less than a year, replacing Chief Executive Dan Allen with a former Lockheed Martin Corp executive who caught the company's eye by helping his unit achieve a 75-percent new business win rate.
CACI Chairman Jack London told Reuters the company's board decided to replace Allen and hire Kenneth Asbury as CEO and president as part of a strategic realignment aimed at more aggressively competing for new contracts and retaining existing business, especially given the budget challenges facing the U.S. government.
"We wanted to refocus, reset our organization to put greater intensity on our business aggressiveness and business acquisition," London said, lauding Asbury's track record in winning new orders during his 27-year career with Lockheed.
CACI and other defense companies are girding for a downturn in U.S. military spending after more than a decade of sharp growth fueled by the wars in Iraq and Afghanistan. The Pentagon's projected spending is slated to be cut by $500 billion over the next 10 years, starting next month, unless U.S. lawmakers find other ways to reduce yawning federal deficits.
The company said Allen, who joined CACI in 2011 and took over as CEO in July 2012, was leaving to pursue personal interests.
London said CACI's board envisioned increasing current revenues of around $4 billion to around $10 billion over the next 10 years. "That's a goal and almost a bit of a dream, but I remember when our revenue was $5 million," London said.
CACI said in a statement that Asbury captured $6 billion in new orders in 2009 when he headed Lockheed's civil business group. After leaving Lockheed, he became president and CEO of ASRC Federal.
Among his biggest wins, Asbury helped Lockheed to beat out the incumbent, L-3 Communications Holdings Inc, to win a $5 billion order from U.S. Special Operations Command.
Asbury said he hoped to develop new opportunities in areas such as cyber security, health care information technology and intelligence.
London said the U.S. government faced tough budget challenges, but CACI saw continued opportunities despite an expected reduction in defense spending in coming years.
Margins would be under increased pressure in the services sector, he said, but CACI had already begun taking actions to shore up margins despite the downturn. He said the company would also continue to look for acquisitions in promising areas, such as health care and the intelligence sector.
Overall, the company saw an addressable market of $250 billion, London said, adding: "We don't see a ceiling on our opportunities."
Asbury said cyber security was a promising area where CACI could offer services and products to a growing number of private companies seeking to shore up their computer networks in the face of escalating attacks by foreign hackers.
- White House reverses, says Obama met uncle and lived with him during law school
- With song and sadness, South Africans mourn Mandela |
- U.S. television, Twitter, alive with new version of 'Sound of Music'
- RPT-UPDATE 1-Ford leans on global Mustang to burnish overseas image
- Ford leans on global Mustang to burnish overseas image