CACI International Inc. (CACI) recently reported record results for the fourth quarter and fiscal 2009. Quarterly revenues of $728.9 million were up 11.3% year over year and up 8% sequentially. Organic growth (excluding acquisitions) came in at 10.5%.

CACI International is a leading provider of professional services and information technology solutions to the federal government.

Operating margin came in at 7.2%, almost flat with the year-ago quarter and 6.7% in the previous quarter. Net income increased 23.0% year over year and 23.9% sequentially to $29.0 million. EPS of 95 cents easily beat the Zacks Consensus Estimate of 92 cents.

For full fiscal 2009, the company reported revenues of $2,730 million, up 12.8% from last year’s total. Organic revenue growth was 9.9%. Net income grew 14.6% year over year to $95.5 million while EPS of $3.14 was a record.

Going forward, management reiterated its prior guidance for fiscal 2010 and expects revenues between $2,850 million and $2,950 million. EPS is anticipated between $3.20 and $3.40.

The current business environment poses uncertainty in the near term. Nevertheless, in the long run, prospects for CACI remain strong. The war on terrorism is a major priority for the federal government. The trend towards outsourcing by the federal government to modernize mission-critical information systems remains robust.

CACI provides the critical IT infrastructure for the Department of Defense (DoD) and the Department of Homeland security. National security continues to be the prime concern for the government, which is feeling the continued demand for the company’s services to keep the nation safe by implementing efficient and cost-effective IT solutions to modernize federal agencies.

CACI competes primarily in the government IT services arena, which, like other government sectors, consists of many competitors of various sizes. All key rivals of the company, like Computer Sciences Corp. (CSC), Digital Net (DNET) and Dynamics Research (DRCO), have their respective strengths. In particular, we believe the company is favorably positioned, given its good relationship with the DoD and its strong position in terms of proposals.

Moreover, management plans to expand its operations in healthcare, logistics, IT modernization along with addressing new opportunities in cyber security, smart power and energy.

Read the full analyst report on “CACI”
Read the full analyst report on “CSC”
Read the full analyst report on “DNET”
Read the full analyst report on “DRCO”
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