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Revenue for the same period grew 11 percent to $1.42 billion from $1.28 billion a year ago.

“Without a doubt, this is a tough market, even for firms performing at their peak,” said Erik Olbeter, an analyst at the D.C. office of the Stanford Group Company, a Houston-based financial-services firm.

CACI has struggled to maintain organic growth in this market,” said Mr. Olbeter. “But everything at CACI is fixable, and they have started to take good, positive initial steps in trying to restart organic growth.”

Mr. Cofoni said that the company’s merger-and-acquisitions program will take a front seat for the next few years as they wait for the war in Iraq to stabilize.

“The demand for federal information-technology [services] is growing, and that funding will eventually return to satisfy these needs,” said Mr. Cofoni.

“In the meantime, we are doing all the prudent things we need to do … so that when we merge into a higher organic growth periodm we will have all the people and tools and possibilities in place.”