#36. CACI INC.

1815 N. Fort Myer Dr. Arlington, Va. 22209 REVENUE: $98 million PROFITS: $2.5 million EARNINGS PER SHARE: 27 cents DIVIDEND: None ASSETS: $43.9 million STOCKHOLDERS' EQUITY: $15.9 million RETURN ON EQUITY: 15.9 percent EXCHANGE: OTC EMPLOYES: 1,600 TOP EXECUTIVES: J. P. London, president and chief executive officer; Herbert W. Karr, chairman. FOUNDED: 1962

DESCRIPTION: CACI provides high-technology services to government, commerce and industry in such fields as logistics, information management, national strategic planning and policy analysis, market analysis, engineering and the environment.

DEVELOPMENTS: After a disappointing fiscal 1984 and a reported loss of $939,000, CACI recovered last year, reporting a profit of $2.5 million for the year ended June 30. The rebound was achieved despite an 11 percent drop in revenue, largely as the result of cost-cutting and consolidating operations.

For the first half of the current year through Dec. 31, the company reported a 4 percent drop in revenue compared with the same period in fiscal 1985, slipping from $49 million (13 cents a share) to $47.2 million (5 cents). The decrease is attributed to increased costs related to competition for government business and continued efforts to expand the company's client base.

CACI was the successful bidder on a number of new major contracts in fiscal 1985, including a spare-parts value-analysis study for the U.S. Navy, a base-information analysis program for the Air Force and the U.S. Naval Air Development Center's air armament engineering-support program.

CACI also expanded revenue derived from market analysis services. The company's demographic systems cover nearly 450 million consumers in North America and Western Europe. Last year, the company became the first market analysis firm to hire a full-time staff demographer and establish a board of demographers to provide expertise in demographic projections. #37. MBI BUSINESS CENTERS INC.

1201 Seven Locks Rd. Rockville, Md. 20854 REVENUE: $95.7 million PROFITS: $2.4 million EARNINGS PER SHARE: 60 cents DIVIDEND: None ASSETS: $52.1 million STOCKHOLDERS' EQUITY: $32.6 million RETURN ON EQUITY: 11 percent EXCHANGE: OTC EMPLOYES: 442 TOP EXECUTIVES: Avner Parnes, chairman and chief executive officer; Armen Manoogian, president and chief operating officer. FOUNDED: 1974

DESCRIPTION: MBI, which officially dropped the name The Math Box last year, owns and operates 36 centers along the East Coast that sell computers and related products to business and the federal government. Twelve of its centers are in the Washington area. The rest are located in the Boston area, Providence, R.I., Philadelphia, Atlanta, North Carolina and South Carolina.

DEVELOPMENTS: The company last year bought Microsource Financial Inc., based in Boston, for $6.1 million and Micro-South Corp., which has 11 stores in the Carolinas, for $1.6 million. Those acquisitions helped account for an 89 percent increase in revenue and a 23 percent increase in profits last year.

Late in 1985, MBI was accused by the General Accounting Office of selling computer equipment at higher prices to the government than are available elsewhere. Management responds that the contract for the sales is a fixed-price contract signed by federal officials with full knowledge of the alternatives. Government sales make up about one-third of the company's business. #38. VSE CORP.

2550 Huntington Ave. Alexandria, Va. 22303 REVENUE: $87.4 million PROFITS: $2.5 million EARNINGS PER SHARE: $1.34 DIVIDEND: 17 cents ASSETS: $45.5 million STOCKHOLDERS' EQUITY: $20 million RETURN ON EQUITY: 12 percent EXCHANGE: OTC EMPLOYES: 2,000 TOP EXECUTIVE: John B. Toomey, president and chairman of the board. FOUNDED: 1959

DESCRIPTION: VSE was founded to help government and industry reduce the costs and improve the reliability of various types of equipment. Eventually, it diversified into engineering and technical services and product divisions, including prototype assembly and testing, production engineering services and management information services. The company's subsidiaries include Design and Manufacturing Inc., a graphic communications company; Metropolitan Capital Corp., a federally licensed small-business investment company; and Starr Management Corp., a property management firm.

DEVELOPMENTS: VSE Corp. reported an 18 percent increase in consolidated net income for the fiscal year ended Dec. 31. Consolidated revenue for the firm also increased 18 percent last year. U.S. government contracts accounted for 87 percent of VSE Corp.'s total revenue last year compared with 77 percent in the previous year.

Financial results for last year take into account a pro-forma restatement of results for fiscal 1984 to reflect a change in accounting method for the valuation of Metropolitan Capital, the company's SBIC subsidiary. The company reversed a net unrealized appreciation of $2.5 million that had accumulated over several years and reported the reversal as a loss in 1984.

Performance last year was helped by the company's participation in Department of Defense "Breakout" programs, which encourage competition through the identification of repair parts for purchase from multiple sources of supply. The company also realized gains through the development of its reverse engineering center, which uses computer-aided design and manufacturing systems to produce engineering and technical documentation to assist in competitive procurement processes.

VSE Corp. also secured a three-year Department of Defense contract to provide engineering and technical assistance for range-systems testing, evaluation, training and documentation.

Last May, the company was thrust into public view when Arthur Walker, a retired Navy lieutenant commander employed by VSE in the firm's Chesapeake, Va., office, was accused as a spy for the Soviets and subsequently convicted. The company's facility in Chesapeake is involved in planning and engineering for repair and alteration of amphibious vessels for the Navy. #39. PENRIL CORP.

5520 Randolph Rd. Rockville, Md. 20852 REVENUE: $74.2 million PROFITS: $39,000 EARNINGS PER SHARE: 2 cents DIVIDEND: 20 cents ASSETS: $69.2 million STOCKHOLDERS' EQUITY: $22.9 million RETURN ON EQUITY: 0.2 percent EXCHANGE: Amex EMPLOYES: 1,040 TOP EXECUTIVES: Alva T. Bonda, chairman and president; Harry O. Christenson, executive vice president and chief operating officer. FOUNDED: 1968

DESCRIPTION: Penril Corp., with plants in six states and three foreign countries, designs, manufactures and markets an array of electronics products, including data-communications equipment, auto and stereo systems and electronic test and measurement devices.

DEVELOPMENTS: The company's profits fell sharply in 1985, a development management attributes to the general decline in computer and computer-related industries. Particularly hard-hit were the data-communications and electronic test-equipment divisions, although auto stereos also suffered from a separate downturn. The firm lost money in the two most recent quarters.

Penril completed two acquisitions last year, purchasing Alltest Inc., a test-equipment manufacturer, for $3 million and Network Products Inc. of North Carolina, a data-communications firm, for $1.9 million. The company has made 14 acquisitions in the last 10 years, but currently is looking more toward improving its financial situation, a spokesman said. Penril president Kenneth M. Miller retired in 1985 to pursue "other activities," although he remains on the board of directors. #40. C3 INC.

11425 Isaac Newton Sq. Reston, Va. 22090 REVENUE: $72.4 million PROFITS: $873,000 EARNINGS PER SHARE: 9 cents DIVIDEND: None ASSETS: $99.8 million STOCKHOLDERS' EQUITY: $71.7 million RETURN ON EQUITY: 1.2 percent EXCHANGE: NYSE EMPLOYES: 538 TOP EXECUTIVE: John G. Ballenger, president. FOUNDED: 1968

DESCRIPTION: The company name represents a merger of "three C's" -- computers, communications and control. C3 Inc. assembles electronic systems from products manufactured by other firms and helps maintain the equipment. The bulk of the company's revenue is derived from government contracts.

DEVELOPMENTS: The Reston-based manufacturer of minicomputer and microcomputer systems reported revenue of $53.5 million for the nine months ended Dec. 31, compared with $53.7 million in the same period of the previous year. Net income over the first three quarters was $1.9 million (19 cents a share), compared with $3.5 million (36 cents) for the same period a year earlier.

The company expects improved fourth-quarter performance, however, because of two recently obtained Air Force contracts. In January, the company was selected by the Strategic Air Command to provide 150 advanced graphics terminals, and last month, under a $38.8 million Department of Defense contract, the company was picked to provide an automatic digital network for the Air Force.