CACI Reports Fiscal 2008 Second Quarter Results

ARLINGTON, Va., Jan. 30 /PRNewswire-FirstCall/ -- CACI International Inc (NYSE: CAI), a leading professional services and information technology solutions provider to the federal government, announced results today for its second fiscal quarter and...


ARLINGTON, Va., Jan. 30 /PRNewswire-FirstCall/ -- CACI International Inc (NYSE: CAI), a leading professional services and information technology solutions provider to the federal government, announced results today for its second fiscal quarter and first six months ended December 31, 2007 . CACI provides innovative solutions to meet America's needs in national security, intelligence, homeland security, and the transformation of government, and is a leading strategic consolidator in its market space.

Second Quarter Results

For the second quarter of Fiscal Year 2008 (FY08), we reported record revenue of $577.8 million, up 21.2 percent over second quarter of Fiscal Year 2007 (FY07) revenue of $476.9 million. The increase during the quarter was driven by both organic and acquired revenue. Operating income for the quarter was $38.3 million, up 3.6 percent, compared with operating income of $37.0 million in the year earlier quarter. The operating margin was 6.6 percent compared with 7.8 percent in the second quarter of FY07. The change in the operating margin was primarily due to a shift in the timing of contract award fees, and to continuing higher subcontractor content integral to the solutions we deliver to our clients. While income before taxes for the quarter was approximately equal to the $31.6 million reported in the second quarter of FY07, our tax rate increased to 39.2 percent from 35.2 percent in the year earlier quarter. The tax rate reported in the second quarter of FY07 was favorably impacted by the R&D tax credit legislation enacted in December 2006 . As a result of the higher tax rate in FY08, net income for the second quarter was $19.2 million, or $0.63 per diluted share, compared with $20.5 million, or $0.65 per diluted share, for the second quarter of FY07. Days sales outstanding at the end of the quarter were 74 compared with 72 days at the end of the second quarter of FY07.

Second Quarter Highlights

Major highlights and accomplishments during the second quarter of FY08 include:

CEO Commentary

Commenting on the company's financial results, Paul Cofoni, CACI's President and CEO, said, "Our second quarter was one of solid performance, which has created momentum for the second half of our fiscal year. The business we won over the past several quarters continues to convert to revenue and earnings. Our organic revenue growth continues to improve and our acquisition program is performing ahead of plan. Our results continue to be ahead of our initial expectations. Our first half has provided us with a good foundation to build on, giving us added confidence about the balance of FY08 and our longer-term growth objectives."

Turning to CACI's growth plans, Mr. Cofoni said, "A key component of our strategy is to be at the center of our clients' efforts to solve the nation's number one long-term threat - global terrorism. CACI's focus is to deliver timely and essential capabilities at the nexus of intelligence and security services that help our clients develop actionable information to identify and preempt terrorist attacks. We believe this is America's first line of defense, and CACI's intelligence capabilities uniquely qualify us to provide great value to our nation and make a real impact on defeating terrorist threats."

Six Months FY08 Results

For the first half of FY08, we reported record revenue of $1.13 billion, up 19.8 percent over first half of FY07 revenue of $944.5 million. Operating income in the first half of FY08 was $73.0 million compared with $73.5 million reported in the first half of FY07. The operating margin was 6.5 percent for the first six months of FY08 compared with 7.8 percent for the same period in FY07. The effective tax rate for the first half of FY08 was 38.7 percent versus 36.6 percent in the first half of FY07. Net income for the first half of FY08 was $37.5 million, or $1.23 per diluted share, compared with net income of $39.3 million, or $1.25 per diluted share, for the first half of FY07. Operating cash flow for the first half of FY08 was $15.8 million compared with $70.4 million for the similar period in FY07. Operating cash flow in the second quarter was impacted by government payment office slowdowns, most of which were weather-related, during the month of December. These payment issues are largely resolved and our cash flow from operating activities is returning to normal levels.

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