* Shares up over 5 pct
* Company posted record revenues in Q1 fiscal 2013
By Andrea Shalal-Esa
WASHINGTON, Nov 1 CACI International Inc's
shares surged more than 5 percent on Thursday, a day
after the provider of services and systems to the U.S.
government reported strong quarterly earnings and said it
expects to continue to grow despite the difficult U.S. budget
Chief Executive Dan Allen told Reuters that the company saw
growth in eight of its 10 main business sectors and expected
higher revenues in the two remaining areas in the second half of
the company's fiscal year, which ends June 30.
He said the company was on track to meet its full-year
targets, including earnings per share of $6.64 to $6.93 on
revenue of $3.8 billion to $4 billion.
"Even in a difficult budget environment, we're going to
grow," Allen told Reuters. "We want to grow aggressively."
He said the company still aimed to double its size over the
next five years through expansion in its key markets and
"That's kind of the mark that we have out there. That's been
the mindset of the organization over time," Allen said, although
he acknowledged that the challenge became greater the larger the
Allen told analysts earlier on Thursday that the company was
well positioned in 10 markets that either promised high growth
or already generated high-volume orders.
He said the company was keeping close tabs on budget
decisions in Washington, and hoped Congress would find a way to
avoid billions of dollars in additional defense spending cuts
that are due to start taking effect on Jan. 2.
But he said the company did not expect a significant impact
on its overall outlook, even if the cuts took effect, given that
it has a large number of separate contracts - more than 2,100 -
with the government.
"We may experience reduced funding on some programs, but we
do not expect cancellation of any major programs," he said.
Speaking with Reuters, Allen also said his company did not
expect to have to issue any layoff notices to workers if
lawmakers were unable to avert the reductions.
CACI shares were trading 5.8 percent higher at $53.37 after
midday on the New York Stock Exchange.
CACI reported record revenue of $931.2 million in its fiscal
first quarter, up 2 percent from $912.4 million in the
year-earlier quarter, with earnings per share surging 26.6
percent to $1.49 from $1.18, largely due to two share
Allen said the company's business systems and healthcare
information technology sectors both generated double-digit
revenue growth in the first quarter.
He said the intelligence and command, control and
communications sectors - which saw lower revenue as result of
the U.S. military drawdown in Afghanistan - were likely to
resume modest growth in the second half of the year.
Defensive, offensive and intelligence work in cyberspace
would be another high-growth area for the company, Allen said,
citing increased concern about cyber attacks on U.S. networks.
He said CACI also remained interested in targeted mergers
and acquisitions but valuations were not well aligned with the
current budget environment and several possible targets had
pulled back earlier this year.