CACI International Inc (NYSE:CACI) Q1 2024 Earnings Call Transcript

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John Mengucci: Good morning Louie.

Jeff MacLauchlan: Hi Louie.

Louie DiPalma: Electronic warfare has proven particularly disruptive in Ukraine. And your CTO, Glenn Kurowski at AUSA, he gave a great presentation on your success with integrating Spectral Sieve, your payload into 89 different drone platforms. And has CACI and Spectral Sieve distinguished itself versus the many other electronic warfare platforms out there? And are there opportunities beyond Ukraine for your solution to be integrated like across the European Union as the country appears to be investing in preparation of other future conflicts? Thanks.

John Mengucci: Yes. Louie, thanks. Look, here is where I – here is where my mind goes, right. We believe we have some best-in-class electromagnetic spectrum tools, whether it’s fine fixed, whether it’s geo, when we put a technology model in place, our goal was that we want to be a mission package provider to the platform companies as well as deliver our offerings directly to customers. And what you hear Glenn talk about is the very first part, which is when we build these tools and – I am sorry, when we build these offerings, it’s all software defining. So, at the end of the day, if I can put my software defined unit in somebody’s hand, I can put it on someone else’s platform. The form factor almost doesn’t matter to us because the gold is the software inside.

That’s why we talk about software as our super power. If we look at delivering to an international front, those are going to come with ITAR regulations and like. So, it is not a difficult modification to take a variant of what we use in the U.S. Some of our partners who want to unilaterally work with us and if they are 5i [ph] country, they are going to get potentially more capability. If you are not 5i country going to get slightly less. But the beauty of that is the timeline and the small amount of investment we need to make those changes, whether it’s a form fit or function, it’s very easy for us because everything is software defined. So, whether it’s Spectral Sieve, Spectral guard [ph] or Magpie or SkyTracker, all of those are mission technology offerings for us have a relatively shared baseline.

And when we spend money to make that investment case better, we are able to spend it in one time and distribute all of that logic and all of those algorithms to many different offerings out there.

Louie DiPalma: Thanks John. And that relates to my second question. You just discussed this shared baseline for your software offerings and the CACI team has also developed software for Sapphire [indiscernible] and you also have the large BEAGLE program. For these different software platforms, are you able to recycle a lot of the common components such that you have like favorable operating leverage on the next platform?

John Mengucci: Yes. So, let me take the first part of that. We build or we deliver a lot of AI-based systems and visualization systems that allow both our DoD and our intelligence customers ability to take terabits of data a minute and take all of that data and transform that into information so we understand what has to be targeted and what doesn’t. Those systems have been in place for a number of years. We continue to move those from one intelligence customer to another and our team does phenomenal job of bringing other users on board. So, one is all of those data visualization tools and all of those mapping tools, frankly, are all foundational AI work we have been doing for a long amount of time, whether it’s computer vision, or whether it’s other facets of AI.

We are actually delivering the base reference models and making certain that those models, frankly, are real and they are deployed. We are not advising customers, how to make AI happen. We are actually delivering it. And it’s used by the war fighters, both DoD and intel across the board. As it pertains to the software, yes, those baselines are also built in a manner that we can share those preference models and all of that software cost all our products. So, in that domain, really not so much the actual form – swap type of things that we would assign to a hardware solution. It’s really more about software being this company’s super. super power and just how well we have architected things. So, when we get the capability in place, we are able to step and repeat and we deliver it.

Thank you for the questions.

Operator: This concludes our question-and-answer session. I will now turn the call back over to John Mengucci for closing remarks.

John Mengucci: Thanks Briana and thank you for your help on today’s call. We like to thank everyone who dialed in or listened to our webcast for their participation. We know that many of you who have follow-up questions, and Jeff MacLauchlan and George Price are available after today’s call. Please stay healthy, and my best to your families, and thank you for your continued interest in CACI International. This concludes our call. Thank you and have a great day.

Operator: You may now disconnect.

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