VIENNA, Va. - Castellum, Inc. (NYSE-American: CTM), a company specializing in cybersecurity, electronic warfare, and software engineering services for the federal government, has announced a new contract award in collaboration with its protégé, Epic Systems, Inc. The contract, valued at $4.1 million, has been granted by the National Science Foundation (NSF) to support the NSF's Administrative Services Help Desk.
Under the terms of the contract, Castellum's subsidiary, Corvus Consulting, LLC, will be responsible for 49% of the work share. This partnership is a significant achievement for both Castellum and Epic Systems, marking a major milestone in their collaborative efforts.
Glen Ives, President and Chief Executive Officer of Castellum, highlighted the importance of the Small Business Administration Mentor-Protégé program, which aims to assist disadvantaged businesses in achieving growth and success. Ives emphasized Castellum's commitment to providing mentorship and support to Epic Systems, enabling them to secure more substantial contracts in the future.
This contract award is part of Castellum's growth strategy, which involves leveraging the Mentor-Protégé program to access revenue opportunities that would otherwise be unavailable to the company. It also reflects Castellum's ongoing efforts to expand its presence and capabilities within 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 be aware that the company faces competition, integration challenges with acquired companies, and the need to close additional acquisitions successfully. Additionally, Castellum's revenue could be impacted by delays in the approval of the federal budget and the company must maintain its NYSE American LLC stock listing.
This news is based on a press release statement from Castellum, Inc. and does not include any promotional content or endorsements of the claims made by the company.
In other recent news, Castellum, Inc. has revised its credit line terms with Live Oak Banking Company, reducing the original principal amount of $4 million to $2 million. This adjustment might affect the company's financial flexibility. Castellum has also declared ambitious revenue growth targets, aiming for a 25% increase over the next two years and a 40% boost in the following year. The company's goal is to surpass $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 his 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, respectively.
Additionally, Castellum has retired a term loan with Live Oak Banking Company, reducing its outstanding debt to $10.3 million, with a projection of total debt falling below $10 million by the end of the year. These recent developments highlight Castellum's strategic approach to growth and financial stability.
InvestingPro Insights
As Castellum, Inc. (CTM) secures a new contract with the National Science Foundation, it's important for investors to consider various financial metrics and analyst insights that could impact the company's stock performance. According to InvestingPro data, Castellum has a market capitalization of $9.91 million, indicating a relatively small player in the industry. Despite the new contract potentially boosting future revenues, the company has not been profitable over the last twelve months, with a negative P/E ratio of -0.5 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -0.87.
InvestingPro Tips suggest that Castellum's stock price often moves in the opposite direction of the market, which may be a factor for investors to consider in their portfolio diversification strategies. Additionally, the company is trading at a low revenue valuation multiple, which could present a buying opportunity for value investors. It's worth noting that Castellum does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income from their investments.
For those considering investment in Castellum, it is also relevant to note that the stock has taken a significant hit over the last six months, with a six-month price total return of -36.93%. This could be indicative 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 slated for November 8, 2024, and an analyst fair value target of $1.15 versus the InvestingPro fair value of $0.24, investors will be watching closely to see how this contract and other factors influence Castellum's financial performance and stock valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.