* 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
By Andrea Shalal-Esa
WASHINGTON, Feb 20 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.
"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
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
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
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
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.