Readying for reductions in war-related spending, Fairfax-based ManTech International is moving to strengthen its intelligence and cybersecurity offerings.
The company’s effort already has helped it score a major contract win, but analysts say the unpredictable spending environment makes for an uphill climb.
Though many contractors have said they expect reductions in Iraq and Afghanistan to take a toll on their business, ManTech is particularly exposed, said George A. Price Jr., senior equity research analyst for information technology services at BB&T Capital Markets. BB&T and its affiliates have relationships with a number of government contractors, including ManTech.
ManTech has offered a broad range of services abroad, from biometrics to repairing vehicles, Price said. The decline in war spending may take time to hit the company’s finances, he said, but it eventually could be a problem for the company.
“One thing that we do know is that the wars are winding down,” he said. “Relative to the other [government services] companies, [ManTech is] more exposed.”
Still, ManTech last week reported a solid quarter, announcing that profit for the three-month period ended Sept. 30 increased to $34.5 million (94 cents a share), up 10 percent from $31.4 million (86 cents) in the same period a year earlier.
Revenue grew to nearly $735 million, a nearly 12 percent boost from $656 million in the same period a year earlier.
Kevin M. Phillips, chief financial officer at ManTech, said the company is increasing the numbers of bids it submits on work unrelated to war efforts.
The company also has taken recent steps to beef up its intelligence and cybersecurity efforts, including announcing last month that it will pay $90 million for Seabrook-based Worldwide Information Network Systems, a cybersecurity company that works with the Defense and State departments, among other agencies.
The acquisition gives the company a spot on a coveted Defense Intelligence Agency contract vehicle worth up to $6.6 billion. Falls Church-based contractor CSC likewise acquired CenTauri Solutions of Alexandria late last year, providing it a chance to win work on that program.
ManTech also scored a victory in winning Ambiance, a Pentagon contract to make improvements to government analytics. The program, which could be worth more than $400 million over seven years, marked the largest award yet for ManTech’s mission, cyber and technology solutions group, said L. William Varner, the unit’s president and chief operating officer.
But the company declined to give revenue and profit guidance for 2012, citing the many proposals it expects to be decided over the next four months.
“ManTech is a good company, and I think they have a good positioning ... particularly around intel and certainly cyber,” Price said. “They’re just facing headwinds that everybody’s going to face to some extent.”