CACI International Inc (NYSE:CACI) Q2 2023 Earnings Call Transcript

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John Mengucci: Yes, so let’s talk about–a little bit about what we’re seeing in Ukraine. I would–I don’t have to warn everybody there that what we all see is about an eighth of what’s actually going on there. Look, we have–we are very deep in counter-UAS and EW, as many of you know. There’s going to be a lot of technology capabilities that are going to be relevant and are already relevant in the Ukraine fight. There’s also avenues for some of our intel analysts, our training and operations support, and our logistics folks in munition expertise issues. Look, I think issues in Ukraine are going to be there for quite a long time. All the supplemental are rightly laden as to your money, but on the other side of that, Louie, is the federal government makes a decision as to what we can export.

What we’re hearing and seeing, what you’re all hearing and seeing – you know, allies around the globe, they’re all talking about expanding their defense budgets just as much as looking at what’s going in Ukraine. We’re already delivering some of our technology to the Five Eyes countries. We’re going to look across our Eastern European allies, they’re increasingly interested in our counter-UAS methods and systems, Louie as you mentioned, far beyond the SkyTracker line. As they increase defense spending, we’re going to be involved in those discussions. We’re already out there understanding what their requirements are. It’s still too early to discuss specifics, but look, it’s another potential market for us. Every time we can do things to grow our total addressable market, better returns come up in the future.

So yes, our SkyTracker line, our Korean line, some of our BEAM and B systems that are more manned tech level solutions that do counter-UAS, up to and including moving from kinetics mitigation versus non-kinetic is what we’re looking at next, so I think we’ve got a long potential growth line there.

Louie DiPalma : Great. It appears as though your work with the Air Force’s Enterprise IT as a Service program is close to moving forward, you said potentially April. Are you also in contention potentially for the Wave 2 and the Wave 3 associated with that program? You obviously won Wave 1, but there’s two other ones that are probably big, and does having Wave 1 put you at an advantage to winning either of the other two?

John Mengucci: Yes Louie, thanks. I’m going to stick to our long tried and true practice of not commenting on things that aren’t awarded. Yes, Wave 2 is the network build of that. I think we were very well positioned on Wave 1 and we’ll have to see how that plays out.

Operator: Those are all the questions we have for today, so I’ll turn the call back to John Mengucci for closing remarks.

John Mengucci: Thanks Emily, and thank you for your help on today’s call. We’d really like to thank everyone who dialed in or listened to the webcast for their participation. We know that many of you will have follow-on questions, so Jeff MacLauchlan, Dan Leckburg and George Price are all available after today’s call. Please stay healthy, and all my best to you and your families. Emily, that concludes our call. Thank you all and have a great day.

Operator: Thank you everyone for joining us today. This concludes our call. You may now disconnect your lines.

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