VIENNA, Va. – Castellum, Inc. (NYSE-American: CTM), a company specialized in cybersecurity, electronic warfare, and software engineering services for the federal government, has announced the award of a new contract in collaboration with its protĂ©gĂ©, Epic Systems, Inc. The contract, valued at $4.1 million, has been awarded by the National Science Foundation (NSF) to support NSF’s Administrative Services Help Desk.
According to the terms of the contract, Castellum’s subsidiary, Corvus Consulting, LLC, will be responsible for a 49% share of the work. This partnership is a significant achievement for Castellum and Epic Systems, marking an important milestone in their collaborative efforts.
Glen Ives, President and Chief Executive Officer of Castellum, highlighted the importance of the Small Business Administration’s Mentor-ProtĂ©gĂ© program, which aims to help unprofitable businesses achieve growth and success. Ives emphasized Castellum’s commitment to providing guidance and support to Epic Systems, in order to secure more contracts in the future.
This contract award is part of Castellum’s growth strategy, which includes using the Mentor-ProtĂ©gĂ© program to access income opportunities not available to the company. It also reflects Castellum’s ongoing efforts to expand its presence and capabilities in the federal government sector.
The announcement includes forward-looking statements about the company’s expectations for revenue growth, new customer opportunities, cost structure improvements, and profitability. However, these statements are subject to various risks and uncertainties that could cause actual results to differ from those projected.
Investors should understand that companies face competition, integration challenges with acquired companies, and the need to successfully close additional acquisitions. In addition, Castellum’s revenue may be affected by delays in federal budget approval and the company’s need to maintain a NYSE American LLC stock listing.
This news is based on a press release statement from Castellum, Inc. and does not include promotional content or endorsements of claims made by the company.
In other recent news, Castellum, Inc. has modified the terms of its line of credit with Live Oak Banking Company, reducing the original principal amount of $4 million to $2 million. This arrangement can affect the company’s financial flexibility. Castellum also announced ambitious revenue growth targets, aiming for a 25% increase over the next two years and a 40% increase the year after. The company’s goal is to exceed $56 million in annual revenue by mid-2026 and reach $63 million by mid-2027.
The company has appointed Andrew Merriman as its new Chief Operating Officer, a move that leverages its track record of substantial revenue growth and technical expertise. Castellum has also formed strategic alliances with Krilla Kaleiwahea, LLC (K2), and Epic Systems, Inc., to pursue potential government contracts and bids.
In addition, Castellum has retired a term loan with Live Oak Banking Company, reducing outstanding debt to $10.3 million, with projections of total debt falling below $10 million by the end of the year. This new development highlights Castellum’s strategic approach to growth and financial stability.
InvestingPro Insights
When Castellum, Inc. (CTM) secured a new contract with the National Science Foundation, it is important for investors to consider the various financial metrics and analyst insights that can impact the company’s stock performance. According to InvestingPro data, Castellum has a market capitalization of $9.91 million, representing a relatively small player in the industry. Although the new contract may increase future profits, the company has not been profitable for the past twelve months, with a negative P/E ratio of -0.5 and an adjusted P/E ratio for the last twelve months in Q2 2024 at -0.87.
InvestingPro Tips suggests that Castellum’s share price often moves in the opposite direction of the market, which may be a factor that investors should consider in their portfolio diversification strategy. In addition, the company is trading at a low valuation, which may present a buying opportunity for investors. It is important to note that Castellum does not pay dividends to its shareholders, which may affect investment decisions for those seeking regular income from these investments.
For those who consider investing in Castellum, it is also appropriate to note that the stock has taken a significant hit in the last six months, with a six-month total return of -36.93%. This can be an indication of broader market trends or company-specific challenges. For more detailed insights and additional InvestingPro Tips, investors can visit the dedicated page for Castellum on InvestingPro.
With the company’s next earnings date scheduled for November 8, 2024, and analyst fair value targets of $1.15 versus InvestingPro’s fair value of $0.24, investors will be watching closely to see how this contract and other factors affect Castellum’s financial performance and share price.
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