CACI International Inc., an information solutions and services provider to the federal government, announced on January 29 that its revenues had declined in the most recent quarter, due primarily to the federal government’s 16-day shutdown last October, budget decreases and its recent acquisition of Six3 Systems, which it expects will help the company in the future in the intelligence arena.
Kenneth Asbury, CACI’s president and CEO, said, “Our results reflect solid execution of our strategy during a difficult period for our customers and our industry. During the quarter, we secured significant contract awards, received solid contract funding, and grew CACI net income by 8 percent, excluding Six3 Systems. We completed the acquisition of Six3 Systems, Inc., which positions CACI as a leader in advanced intelligence and cyber security offerings to our national security customers. Six3 brings a unique set of signals intelligence and cyber capabilities that are increasingly essential to protecting our country against growing international threats.
Revenue in the quarter that ended on December 31, 2013 dropped by 4%, to just over $894 million, said a company news release.
The decrease in operating income in the quarter was due primarily to $9.7 million of one-time acquisition-related expenses for Six3 Systems (Six3). Interest expense increased in the quarter as a result of $2.6 million of interest incurred on the additional debt associated with the acquisition of Six3.
“On November 15, 2013, we closed on our acquisition of Six3 Systems,” explained the release. “The largest acquisition in CACI’s history, Six3 brings approximately 1,600 new employees. Six3 adds distinctive cyberspace, C4ISR, and intelligence capabilities to our solutions and services, deepens our current customer base, and brings us new customers. Six3 positions us as a leader in mission-critical national and tactical intelligence, as well as operations and intelligence fusion.”