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DXC Technology Spin-Off Perspecta Reports Strong Growth In Federal Space

‘Our entire team has worked hard to stand up a new company without missing a beat on delivering mission success for our customers,’ Perspecta CEO Mac Curtis says on the company’s second-quarter earnings call.

Perspecta CEO Mac Curtis told investors that the company is further along than expected after separating from DXC Technology and taking the government services practice solo in June.

Revenue for the quarter ended Sept. 30 was $1.07 billion, up 3 percent from the first quarter of fiscal year 2019. Second-quarter earnings per share came in at 14 cents on net income of $24 million.

“We're about two quarters in and we're generally ahead of where we thought we'd be,” Curtis told investors. “Integration is hard work, but we've got a couple of key factors working in our favor. Number one, the value proposition makes sense to our customers and to our employees. And number two, we developed detailed integration plans for seven months prior to close that prepared us to execute.”

The company said its growth was driven by the defense and intelligence segment, which increased 8 percent year over year, with strong performance in the intelligence community and federal background investigations support businesses.

Curtis said the company signed $10.2 billion in business last quarter—which is up 13 percent over its first quarter of business—with the largest award being a $787 million extension on the company’s NGEN contract with the Department of the Navy.

“The forward outlook for bookings remains strong,” he said. “We have a robust pipeline of $68 billion of qualified opportunities over three years, including $8 billion of proposals already submitted and awaiting a decision. The vast majority of our pipeline represents new business and growth opportunity for Perspecta.”

Perspecta labs is working on two DARPA-funded, large-scale cyberdefense products, Curtis said.

The first, for the configuration security or ConSec program, has applicability to network connected systems for the Internet of Things, Curtis said. Perspecta is developing technologies that automatically generate, deploy and enforce configurations of components and subsystems for use in multiple platforms. The configurations must deliver needed functionality and performance while addressing system vulnerabilities and minimizing attack surfaces, he said.

The second is supporting the cyberhunting scale or chase program, he said. The goal is to develop “dynamic real-time tools that can successfully defend large-scale distributed networks from broad-spectrum cyberattacks,” he said. Perspecta labs is designing and developing a set of components for threat detection and characterization that will “accelerate the hunt process by translating a high-level threat description into possible concrete implementations,” he said.

“In summary, our end markets are growing and innovation and intellectual property differentiates us from our competitors,” Curtis told investors. “Our entire team has worked hard to stand up a new company without missing a beat on delivering mission success for our customers. With each passing day, we were executing more efficiently, coming together more closely, and creating a stronger, more unified company that we can all be proud of.”

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