Leidos CEO Roger Krone Sees Momentum in 2020 After Series of Contract Wins, Acquisition Deals

Jeff Brody
Roger Krone

Roger Krone, chairman and CEO of Leidos (NYSE: LDOS) and a 2020 Wash100 award winner, said during an interview on CNBC’s “Squawk Alley” program aired Tuesday that significant government contracts and acquisitions will support momentum for the Reston, Va.-based company this year. Shares in Leidos gained 10 percent in midday trade Tuesday.

In the interview, Krone talked about the reason behind the company’s $1.65B cash acquisition of Huntsville, Ala.-based technology services contractor Dynetics.

He said the acquisition made sense for Leidos because the technologies, such as hypersonics, space platforms and directed energy, that the company saw in Dynetics are completely aligned with the National Defense Strategy.

“I would also like to point out that Dynetics started as a services company and they still have a large service component,” Krone said. “We saw the move to Dynetics to add more product portfolio to Leidos overall. But we still want to have a strong mix of services and some products.”

Krone also shared his outlook on defense spending and talked about the opportunities to partner as more technology companies get into the government contracting space.

Leidos saw its fiscal year 2019 revenue increase by 8.8 percent to $11.09B and recorded $912M in FY 2019 operating income, up from $749M in the previous year. The company posted $14.5B in FY 2019 net bookings, reflecting a book-to-bill ratio of 1.3 for the year.

You may also be interested in...

Brandon Wales Acting Director CISA

Brandon Wales: CISA’s New Campaign Aims to Help Public, Private Sectors Defend Against Ransomware

The Cybersecurity and Infrastructure Security Agency has launched a campaign to promote the use of cybersecurity tools and best practices to increase ransomware threat awareness across the public and private sectors.

The White House

President Biden Issues COVID-19 Data Collection Order

President Joe Biden has ordered federal agencies to work with the government's COVID-19 response coordinator in efforts to collect, publish and share pandemic-related data and address disinformation or misinformation campaigns regarding the public health crisis.