CACI Secures Multi-Million Contract To Counter Terrorism

Information technology services provider CACI International Inc. (NYSE:CACI) recently secured a multi-million contract to counter narco-terrorism activities for the U.S. Central Command (CENTCOM) in Afghanistan. The contract expands the scope of work for the company’s Intelligence Services market area and reinforces its position as one of the leading players in the segment.

Per the contract, CACI will provide support services in areas such as program management, training, and logistics for both CENTCOM and its military and civilian partner agencies. In particular, the company will facilitate the agencies to protect the U.S. Armed Forces through manpower and required back-up services along with relevant law enforcement training to host nations to disrupt narco-terrorist activities and organizations.

CACI will offer CENTCOM a full cadre of subject matter experts who specialize in countering narco-terrorism. They include former top-ranking military officers and officials from civilian agencies, who possess profound experience in combating drug trafficking and terrorism.

CACI has a large pipeline of new projects and continues to win more deals at regular intervals which are likely to catalyze the company’s growth story. CACI intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building new ones.

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A leader in IT outsourcing for the U.S. federal government, CACI earns its revenues through four customer groups – the Department of Defense, Federal Civilian Agencies, Commercial and Other, and State and Local Governments. The Department of Defense customers include the U.S. Army (CACI’s largest customer) and the U.S. Navy. Federal civilian agencies provide litigation support services to the Department of Justice.

Having the government as one of the biggest clients lends stability to the business and moderates fluctuations in revenues. Although, the government generally has a lengthy approval process, the project continues earning money years after it has been approved. Moreover, government contracts improve the visibility of future revenue streams.

CACI’s system integration skills and intelligence expertise consume a significant portion of the funds earmarked for the Department of Homeland Security, while creating systems that foster the sharing of critical information among all intelligence agencies. We believe that the company is comfortably positioned, given its favored relationship with the Department of Defense.

CACI currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include ARI Network Services Inc. (NASDAQ:ARIS) , The KEYW Holding Corporation (NASDAQ:KEYW) and LogMeIn, Inc. (NASDAQ:LOGM) , each holding a Zacks Rank #2 (Buy).