Tag - MANT

With the advent of software and the Internet, the world may seem as if it’s getting tinier by the day, but no matter how small it is, the market to protect it is still vast. This plays perfectly into software and systems providers Integral Systems, Inc. (Nasdaq:ISYS) and ManTech International Corporation (Nasdaq:MANT).

Both ManTech and Integral, purveyors of software for satellite, defense and homeland security applications, are well-positioned to capitalize on government IT spending, which is forecast to grow 29% to $102 billion by 2012 from $79 billion in 2007. Another trend supporting IT market growth is the impending shortage of government IT workers. Federal IT outsourcing spending is projected to grow to $18 billion in 2011 from $13 billion in 2006. Recent government contract awards include a $124 million State Department contract for its global IT modernization program and a $151 million Navy IT contract. Both contracts were awarded in July. 

Integral.builds satellite ground systems and equipment for command and control, data processing and simulation. The company has provided ground systems for over 200 different satellite missions for communications, science and meteorology. Its customers include government and commercial satellite operators, spacecraft and payload manufacturers and aerospace systems integrators. Integral was the first to offer commercial, off-the-shelf software for satellite command and control, enabling its customers to avoid the high cost and development risk of traditional, custom-built satellite ground systems. The company’s EPOCH software is the world leader in commercial applications and has been successfully installed on five continents.

A key growth driver of Integral’s business is demand for satellite bandwidth. Industry analysts forecast government and military demand for commercial satellite bandwidth will continue to rise through 2015 and look for 43% growth in in-service units to 557,200 by 2012 from 388,900 in 2008.

Integral has enjoyed 18% annual revenue growth and 20% annual earnings growth since 2001. In 2008, demand for its services from the U.S. Air Force and other government agencies has pushed growth rates higher. The company’s revenues rose 34% year over year in the first nine months of FY 2008 to $123.9 . . .

Of all the consumers of information technology services today, the federal government is America’s largest, with spending having increased every year since 1980. According to INPUT, a market research firm, federal government IT spending will grow to $80.5 billion by 2011 from $63.3 billion in 2005. The Department of Defense accounts for the majority of spending.

This rise in federal government IT spending is largely the result of expanded national defense and homeland security programs, a growing need for sophisticated intelligence gathering and increased outsourcing by government agencies due to the retirement of large numbers of  government IT specialists.

Two small caps benefiting from increased government IT spending are Digimarc Corp. (Nasdaq: DMRC), which produces digitally watermarked driver licenses and identification cards, and ManTech International Corporation (Nasdaq: MANT), a provider of secure IT systems and infrastructure for national security programs.

ManTech’s customers include, among others, the U.S. intelligence community, the Departments of Defense, State, Homeland Security and Justice, and the NASA Space program. The company provides an array of services, ranging from systems engineering and integration, technology and software development, to enterprise security architecture, information assurance and network infrastructure protection. ManTech maintains the secure communications systems being used to fight the war in Iraq and also supports a secure database for tracking terrorists.