The Insider

Perspecta CEO: Amazon's arrival 'puts stress everywhere'

November 15, 2018 at 1:21 PM

Amazon's decision to locate part of its second headquarters in Northern Virginia “does put stress on the system,” the chief executive of Perspecta said last night.

Speaking to analysts, Mac Curtis acknowledged it could tighten the job market for the contractor. However, he said only one-quarter of the company's nearly 15,000 employees are based in the D.C. area.

He said much of that workforce has clearances and is driven by the company's mission -- but said the company is still thinking about how to hold onto its employees.

“We're looking at how you wrestle with that,” Curtis said. “It's probably the only time in my career I've said I'm glad I'm 30 miles outside of Crystal City, near Dulles, because commute does play a pretty big role in the work-life balance.”

Curtis also said the company remains bullish despite reports the Pentagon may need to come up with a $700 billion, rather than $733 billion, budget next year.

He said Perspecta doesn't expect a “peanut butter spread” approach to cuts.

“I think it's going to be really on specific systems,” Curtis told analysts. “We're in the right markets, we do the right functions in cyber and data analytics. A $700 billion budget is still a lot.”

Meanwhile, Perspecta reported yesterday sales in its most recent quarter reached nearly $1.1 billion, up 51 percent from the same three-month period a year earlier.

However, the contractor recorded quarterly profit of $24 million, down 40 percent from the prior year.

Perspecta said its defense and intelligence business recorded an 8 percent sales boost during the quarter.

“Major drivers of the year-over-year increase include continued growth in intelligence community support and background investigations,” the company said. “The increase also included $13 million resulting from the successful completion a large, classified, fixed priced contract earlier than originally anticipated.”

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