An Oct. 21 Business article misstated the price for which CACI International Inc. purchased the defense and intelligence group of American Management Systems Inc. The price was $415 million, not $550 million. (Published 10/23/2004)

Lucrative Defense Department contracts, gained partly through acquisitions, helped boost CACI International Inc.'s first-quarter revenue and profit.

The Arlington government contractor earned $19.8 million (66 cents a share) in the quarter ended Sept. 30, compared with a profit of $13 million (44 cents) in the comparable quarter last year. The company's first-quarter revenue rose 65 percent to $388.7 million.

J.P. "Jack" London, CACI's chief executive, said the government's war on terrorism has fueled much of the company's growth. "It creates the national policy environment where resources are going be expended in areas where we have offerings and where we have positioned the company to be a provider."

The company said its quarterly revenue from Defense Department contracts alone rose 86 percent from the comparable quarter a year earlier. Revenue from Pentagon customers totaled $277.8 million. London said a "significant" portion of that growth was the result of CACI's acquisition of American Management Systems Inc.'s defense and intelligence group. The company completed the $550 million purchase of that division in May.

In the spring, the company's stock was hurt by allegations in an internal Army report that said one of CACI's employees was involved in the Abu Ghraib prison scandal. Shares of CACI's stock traded as low as $37.14 in late May. The company's stock has rebounded and closed yesterday, before the after-hours earnings announcement, at $56.27, up 57 cents.

"Investors have really gotten back on the bandwagon for CACI," said William W. Hamilton, an analyst with Pershing LLC. "They continue to execute on their plan and are consistently delivering good numbers. I think they've really put together a . . . portfolio of capabilities that is in the right niches of where the government is spending its money, especially in intelligence work."

The company also raised its financial guidance for the year. CACI said it expects revenue for fiscal 2005 to fall between $1.53 billion and $1.58 billion and profit between $80.6 million and $83.6 million.