Leidos says even full fiscal year CR would have 'minimal' effect

Roger Krone, Leidos' chief executive, said today that even if the continuing resolution now in place lasted the full fiscal year, it would take a limited toll on the company.

"We've run it for the fiscal year, and we don't have a lot of 2020 new-starts in our pipeline, so I would say it’s minimal," he told analysts during a call today. "You never want to say it's zero, but it's really immaterial for us."

Krone also said the security clearance process is improving slightly.

"It's a little bit better," he told analysts. "I don't think anybody in the industry is out celebrating just yet."

Krone said the backlog of clearance applicants yet to be processed is slightly reduced.

"But the workflow through the process is still way too long and probably a minimum of six months," he added.

Meanwhile, Leidos said today sales in its most recent quarter in the defense group totaled $1.4 billion, up 8% from the same three-month period a year earlier.

"The revenue increase was primarily attributable to new awards and a net increase in program volumes, partially offset by the completion of certain contracts," the company said.

The group's quarterly profit reached $93 million, up almost 5% from the prior year.