This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“International continues to be a key differentiator for the company…approximately 36% of our backlog is comprised of international programs”
“On April 10, the fiscal year ’14 defense budget request was released. While it did not comply with sequestration and is likely to undergo modification over the coming months, it was a clear statement of DOD’s priorities. The focus continues to be on rebalancing to the Asia-Pacific region and our key mission areas such as Missile Defense, EW and cyber, which play to our strengths.”
“30 of our contracts represent 1/4 of our business. 128 contracts represent the 50%. And then if you look, the last half of our sales are driven by 15,000 contracts that represent $1.5 million, $2 million worth of business. And that’s this company and that’s what makes it so strong, because we convert those smaller programs into bigger programs later on in time”
“clearly, the department is trying to make sure that they’re leaner, they’re more flexible, they’re agile, they’re going to be smaller, and they’re going have to be able to adapt. And there is a focus on the Asia-Pacific region. There’s been 60 years of peace there. And the United States wants to make sure our allies and our friends over there continue to enjoy another 60 years of peace. That doesn’t mean, from a standpoint, that the threat is China, some people predict. That’s more of, how do we make sure that North Korea and others don’t threaten the well-being of our friends and allies over there. So I think part of the strategy is how do we do that. Probably in more of a focus on naval. It’ll be a repositioning of personnel, probably in places they haven’t been before, but that’s because they’ve been fighting in a battle in Iraq or Afghanistan. And so from my standpoint, I think special ops are going to get more attention. They’re quicker. I think companies are going to have to have technology and things they can put on the table rather than view graphs, which appeals to us. And I also see a real attention to cyber, and I break the cyber down into 3 areas. Those areas would be the network, they would be in cyber weapons and they’d be in infrastructure. And that’s where part of the focus is going to be there. And of course, you all know that, that’s what we’ve been doing for the last 4, 5 years here, getting ready for what we thought was coming.”
“It’s unlikely there is going to be any change in sequester in the next few months. We assume it’s going to take the full year, the fiscal year ’14 budget. It gives them — Congress and the administration, a chance for maybe a grand bargain.”
“a part of our philosophy here, the company or the strategy, is that our products or our services have got to both be forward-looking but they’ve also got to be backward-compatible.”